WHEN TO SELL, UP-SIZE, MOVE ON.

When is it time to give up the family home?
By Garry Marr
Financial Post Nov 17, 2012

It’s a conversation certified financial planner Lise Andreana usually saves for last.

The Niagara-on-the-Lake CFP, who counts a large number of Baby Boomers among her clients, says plans for the family home are one of the more difficult subjects to address.

“It’s something that comes up all the time,” says Ms. Andreana, adding clients have to make the decision sometimes for financial reasons and other times for health considerations. “It’s a piece I leave until the last. I start with ‘sell the house never’ as a default position.”

Most people want to hold onto their home into retirement. The latest data from 2012 Census from Statistics Canada shows only about 2.6% of the population 65 and over was living in residences for senior citizens — about 72.3% of them women.

Living longer and working longer has people staying in their homes and, in some cases, even up-sizing by taking on more debt, says one real estate executive.

The evidence from StatsCan shows that in 2011, 66.5% of men aged 65 to 69 lived in a single-detached house compared with 60.4% for women. Once you get to 85, just 44.3% of men live in a single-detached house and 30.9% of women.

It’s clear the older we get the more likely we are to abandon the family home with the difficult decision being when to do it. A key trigger point is when kids move out of the house and you just don’t need the space.

“Many people move from more expensive areas to [cheaper ones] to save money too,” says Ms. Andreana, who suggests if you are still making mortgage payments into retirement you really need to think about moving because your income is gone.

The problem is adult children are moving back home like never before, forcing many Baby Boomers to keep that extra large house just in case their kids need a soft landing. StatsCan said about 42% of young adults 20-29 lived with their folks in 2011, a huge jump from 32.1% in 1991 and 26.9% in 1981.

That could be a reason to actually downsize, so your kids can’t move in. “I actually did that with my kids,” says Ms. Andreana, with a laugh. “I sold my three-bedroom house and bought a townhouse and said ‘guess what, your bedroom is gone. There is no where for you to go.”

Doug Norris, chief demographer at Environics Analytics, said Baby Boomers probably worry about their kids, but also the economic climate, which could keep them in the house longer. “It’s uncertain times,” says Mr. Norris. “But there comes a time where you do make that choice and it’s often driven by lifestyle.”

Mr. Norris says a new trend developing is downsizing to condominiums, but doing it by moving to the suburbs so Baby Boomers can be close to grandchildren. Condo growth in Toronto’s suburbs has actually been faster than downtown, even if the overall number of units pales in comparison. But in many Canadian cities high-rise development outside the urban core is negligible.

“You see a lot of care giving of grandkids being done by grandparents today and they want to be close to them,” he says.

In some cases those Boomers are actually taking on more debt so they can get into a larger home later in life.

“It is surprising to most people that instead of downsizing they are setting new standards for retirement living,” said Gurinder Sandhu, managing director of Re/Max Ontario-Atlantic Canada. “There is a significant number of them upgrading and actually assuming greater mortgages. It’s so unlike previous generations.”

It could have something to do with the housing boom. Surveys continually point to people believing their homes are a key part of their retirement package. If you believe that, leveraging a good investment can make sense.

The bottom line is Baby Boomers seem destined to stay in their homes as long as they can, says Fred Vettese, chief actuary of Morneau Shepell. “The vast majority (nine out of 10) of middle- to upper-income Canadians own their home at the point of retirement and almost all of them stay in their homes beyond retirement,” he says. “The slight percentage drop in ownership among those who are 70-plus probably reflects the portion of them who are 80-plus who move to retirement homes or move in with their children.”

MOMENTUM IN 13

Strong momentum forecast for Calgary housing market into 2013
RE/MAX report says Calgary sales to continue strong
By Mario Toneguzzi
Calgary Herald November 14, 2012

CALGARY — Calgary’s housing market is forecast to remain strong in 2013 following increased sales activity this year, according to real estate firm RE/MAX.

In its Housing Market Outlook 2013, released Wednesday, the company said MLS sales in Calgary are expected to finish this year at 25,500 transactions, up 13.5 per cent from the previous year and the forecast is for sales to grow by another 10 per cent in 2013 to 28,100.

Meanwhile, the average MLS sales price this year is estimated to increase by 2.5 per cent to $413,000 and rise by another two per cent in 2013 to $423,000.

“Calgary is expected to head into 2013 with a level of momentum not seen in years. Solid economic performance and strong consumer confidence are forecast to propel the residential housing market forward,” said RE/MAX.

It said Canadian real estate markets demonstrated remarkable resilience in 2012 — with home sales up or on par in 65 per cent of major centres — despite considerable headwinds in terms of tighter financing and economic uncertainty abroad. The trend is expected to continue, with homebuying activity propped-up by low interest rates and an improved economic picture in 2013, according to the report.

Nationally, an estimated 454,000 homes will change hands in 2012, falling one per cent short of the 2011 level of 456,749. Canadian home sales are expected to almost mirror the 2012 performance next year, holding steady at 454,000 units. The average price of a Canadian home is expected to remain stable at $364,000 in 2012 — on par with the figure reported in 2011. Values are expected to appreciate nominally in 2013, rising to $366,500, one per cent above year-end 2012 levels.

“Looking forward, there are a number of factors on the horizon that will serve to bolster residential activity in 2013,” said Elton Ash, regional executive vice-president for RE/MAX of Western Canada. “Canada’s economic performance is expected to show signs of improvement, particularly in the latter half of the year, which should bode well for housing markets across the country. Historically low interest rates will also continue to drive healthy homebuying activity.”

The RE/MAX report said Calgary’s residential real estate market appears poised for growth.

This year’s level of sales activity will be the highest since 2007 when 31,897 sales were recorded.

“Recovery is underway in the city, with some areas reporting greater strength than others,” said the report. “Calgary’s inner core has been particularly robust, in large part due to the proximity to the downtown. Activity surged this spring in neighbourhoods such as Killarney, Hillhurst, Marda Loop, Mount Royal, and the Foothills, pushing up values to heights not seen in recent years.

“Peripheral areas also experienced stronger demand, but price increases were less pronounced. By mid-year, however, purchasers had settled into a more normal buying pattern. Balanced market conditions emerged, with first-time buyers working in tandem with moveup purchasers.”

The report said single-family homes were most sought after, especially under the $450,000 price point, where 67.5 per cent of overall residential sales occurred.

Condos represented about 16 per cent of total residential sales in the city.

TOP MARKETS

Calgary and Edmonton displace Toronto and Vancouver as top real estate markets
Limited supply in Calgary pushes rents higher
By Mario Toneguzzi
Calgary Herald November 6, 2012

CALGARY — Calgary and Edmonton have displaced Toronto and Vancouver as the top-ranked cities for overall real estate prospects, according to the Emerging Trends in Real Estate 2013 report released Tuesday.

The report, by PwC and the Urban Land Institute, said the Canadian real estate market is expected to remain steady with “modestly good” investment and development prospects across most property sectors for 2013, reflecting expectations of solid supply and demand.

Calgary was the top-ranked city in the country followed by Edmonton, Toronto, Vancouver and Ottawa.

In this year’s survey, Calgary ranked first in both investment and development prospects and second in homebuilding prospects.

“Growth characterizes Calgary’s future; it displaces Toronto as the top ranked city for 2013,” said the report. “This has made it challenging to acquire high quality real estate in Calgary, absorption of prime properties has reached record levels, and rents are being pushed due to limited supply.

“This trend will continue in 2013, especially in office and industrial employment space. Construction will increase in the housing and non-residential arenas, but nowhere near pre-crisis levels.”

According to survey participants, Canada’s real estate market will follow along in a seeming state of near-perpetual equilibrium compared with other more volatile regions studied in the report, including most obviously the United States.

“The results of this year’s Emerging Trends report reflects the fact that the Canadian real estate community understands real estate fundamentals and knows how to react to fluctuations in monetary policy and capital markets. Canada’s real estate industry continues to operate well despite uncertainties in domestic and global economies,” said Lori-Ann Beausoleil, PwC Canada’s Real Estate Leader.

The report said Calgary’s expanding economy is requiring a larger and more highly-skilled workforce. Employment forecasts indicate growth of 2.8 per cent next year and 2.9 per cent in 2014.

“This growth, driven mostly by the oil and gas industry, has made it challenging to acquire high-quality real estate in this market,” said the report.

“Absorption of prime properties has reached record levels and rents are continuing to be pushed due to limited supply.”

The report said potential approvals of controversial pipeline projects to the United States and into British Columbia would boost real estate construction projects further in Calgary.

The strength of Calgary’s real estate market is evident in both the residential and non-residential sectors.

According to the Calgary Real Estate Board, year-to-date as of Monday, total MLS sales in the city of 18,905 are up 15.56 per cent from the same period last year.

Canada Mortgage and Housing Corp. is forecasting total housing starts in the Calgary census metropolitan area to finish at 12,400 units this year, an increase of more than 33 per cent from 2011 and the highest level since 2007.

RealNet Canada recently said Calgary has experienced the second best ever year for commercial real estate transactions for the first nine months of the year with $3.394 billion in sales so far this year.

And a recent report by Jones Lang LaSalle suggested a downtown office development boom in Calgary could be on the horizon.

ON WITH THE SNOW

Bylaws related to snow and ice

Overview of snow and ice removal regulations

•Owners/occupants are responsible for the complete removal of snow and ice from all City pathways and sidewalks, adjacent to the front or side of their property, within 24 hours after the snow stops falling.

•Snow and ice must be removed from a City pathway or sidewalk that runs parallel to and directly adjacent to a street, even if it is separated by a boulevard.

•All snow and ice must be removed down to the bare surface of the sidewalk or pathway.

•If you own a rental property you are ultimately responsible for ensuring the sidewalks and pathways are cleared.

• For the purpose of this bylaw, a sidewalk is that part of a street set aside specifically for pedestrian use, whereas a pathway is a multi-purpose thoroughfare for use by pedestrians, cyclists and persons using wheeled conveyances.

•The owner or occupant of land adjacent to a sidewalk must remove all snow and ice, whereas those adjacent to a pathway must remove snow and ice for a minimum width of 1.5 meters from the side of the pathway closest to their property.

•Snow or ice from private property cannot be placed on a road or boulevard.

•If you receive a Warning Notice for failure to remove snow and ice from a sidewalk or pathway and do not remove it within 24 hours. The City of Calgary work force will be instructed to carry out the work and the cost will be invoiced to the property owner. Failure to pay this will result in the cost being added to the property taxes.

Helpful hints

•If the ice cannot be removed, a free sand/salt mixture is available for pick up at most fire halls and Roads depots. Please bring your own container.   Source: City of Calgary

MAKING PARKS A PRIORITY

Milke: Cities thrive when parks are a priority, not megaprojects
By Mark Milke
Calgary Herald October 26, 2012

Mayors and councillors across North America regularly spend taxpayer cash trying to revitalize neighbourhoods or entire cities. They often do so in expensive and ineffective ways: grand schemes that wipe away existing neighbourhoods or street markets, only to be replaced with massive convention centres (mostly unused by locals), or costly new arenas for professional sports teams.

Such attempts are almost always costly and misallocate tax money; they rarely revitalize cities to the extent advertised by proponents. After all, when is the last time you grabbed a coffee and went for a walk around the edge of a hockey, basketball or football stadium? Most people prefer to hoof it around a lake, along a river, by the ocean, or in local parks and on pedestrian-friendly streets with cafes and shops.

Too often, such tax-financed developments just create mammoth parking lots surrounded by mostly dead zones once some three-hour game or daylong convention is over.

Politicians thus too often forget the tried-and-true basics for livable and attractive cities: keep the streets safe, collect the garbage, ensure the taps pump out clean water, that good schools exist and that playgrounds and parks are tidy and desirable.

They also occasionally ignore the importance of not overtaxing their citizens or discouraging business, also critical for a city’s health. Every city, ultimately, has a commercial basis: people need to first make a living, and only afterward can they (and their governments) spend money on the niceties. Discourage the first and you get less of the second.

If all of the above seems obvious, the reality is that desirable urban features can be foregone in the pursuit of civic megaprojects; they can also be crowded out by too-powerful city unions that unreasonably divert tax dollars from pleasant amenities for all to above-market compensation for the few.

But some recent stories, in Edmonton, and in New York City, where Central Park just received a $100-million gift, should give city lovers the hope that a refocus on the basics of city life is possible.

In Edmonton, city council turned down Edmonton Oilers’ owner Daryl Katz’s demand for another $6 million a year in taxpayer subsidies, this for a proposed new half-billion-dollar NHL arena. (The demand was on top of the hundreds of millions of dollars in previously promised taxpayer funding.)

If Edmonton’s refusal torpedoes a taxpayer-financed rink, great; maybe that will allow everyone to concentrate on what can actually revitalize a neighbourhood.

It doesn’t take an urban development specialist to figure out what can attract people to a neighbourhood, including a willingness to pay top dollar for nearby real estate: beautiful urban parks. Think Stanley Park in Vancouver, Mount Royal in Montreal, the relatively new Millennium Park in Chicago, or one of the world’s premier urban parks, Central Park in New York City.

Recall New York and Central Park in particular. In the 1970s, New York was an overtaxed, crime-ridden, in-hock-to-government unions, falling-apart metropolis. Central Park, a magnificent late 19th century creation, was dilapidated in part because of misplaced political priorities.

New York was a classic example of what happens when those in charge of cities forget what makes them desirable for citizens.

Space doesn’t permit detail on all the reforms enacted in New York, most of which started with the election of Rudolph Giuliani as mayor in 1993. Here’s a snapshot: a crackdown on petty crime, reform of civic spending, making the city more business friendly and less corrupt, and a reduction in taxes.

One pre-Giuliani reform was the restoration of Central Park. The genesis for that began in 1980, when a group of New Yorkers formed the Central Park Conservancy. Shortly thereafter, the conservancy, a charitable foundation, took over management of the park in a public-private partnership with the city.

As an example of what can happen when private citizens drive reform, consider that since 1980, $600 million has been raised for restoring Central Park to its former glory; $470 million of that came from private sources (with the recent $100-million gift a nice top up). At present, the park’s annual operating budget is $46 million, with 85 per cent financed out of conservancy funds. Central Park is again magnificent. That’s because it’s not run as part of a big-city bureaucracy, part of the problem pre-1980.

When local politicians ignore street-level concerns, or wrongly focus on what doesn’t work (megaprojects), or engage in sweetheart deals with civic unions at the expense of more efficient services or needed capital expenditures, the result is a less-than-attractive city. That was a lesson New York learned the hard way.

More positively, when politicians and citizens focus on improving the amenities citizens need and use every day, parks being the best example, a city can thrive as a pleasant and desirable metropolis.

Photo By: surrealplaces

HAUNTED HOUSES FOR SALE

Top 10 haunted houses for sale

If you've ever wanted to live in a haunted house (and who hasn't, since that always works out so well in the movies), now's your chance! Toptenrealestatedeals.com has released their annual October list of the ten most haunted homes you can actually buy, so you can hide the gruesome truth of the home's history from your spouse and ignore the creepy new imaginary friend your child insists is real!

Constructed in 1895 for the president of Remington Arms and Typewriter Company (the real money used to be in typewriters), this four-floor Thousand Islands Mansion has slowly become a gutted, haunted terrordome. Uninhabited for over 60 years, save for the ghosts that no doubt prefer it that way, this evil abode can be yours for a mere $495,000. That's a steal, especially since it comes with a bunch of free evil spirits! The villa sits on a 6.9-acre island. There are probably ghosts in the water.

Amsterdam Castle was built without ghosts in 1894 as a National Guard Armoury and has quite the history. John F. Kennedy gave a speech there in 1960, and it's used been as a set for PBS movie American General and ABC's Wife Swap. Now it's an uninhabited castle, so logic says it's haunted like nobody's business because all castles are, but if there's any lingering doubt it's a big concrete hellscape, it's also across the Erie Canal from a cemetery. Amster-damned Castle is more like it. Nearby Widow Susan Road is named for the figure of a woman in a white nightgown (presumably named Susan) seen walking the area, looking for her husband's grave. If she's at all thorough, she's eventually going to look inside the castle.

Built in 1893 in New Jersey (and that's not even the worst part!) Blairsden is definitely haunted. First of all, it's called Blairsden, which just sounds haunted. Second of all, the 62,000 square foot mansion was sold to the Sisters of St. John the Baptist in 1950 and, according to legend, the Mother Superior and her 25 sisters switched sides shortly thereafter. That's right: this is the former home of A CONVENT OF DEVIL-WORSHIPPING NUNS. So the legend goes: one night, newfound Satan fan Mother Superior went crazy and killed everyone in the house. She also drowned the children in the nearby lake. Vengeful nun spirits and demon ghost kids? And they're only asking $4.9 million for the place? What a steal.

The Buxton Inn is Ohio’s oldest continually running bed and breakfast, which is impressive, since it's just crammed full of ghosts and none of them pay for their rooms. This 200 year-old, nearly 30,000 square-foot property features 10 total buildings, six fountains, and one lady in blue said to stalk the properties trying to find her disembodied feet. It's tough because the feet are also said to stalk the property and they're faster than she is, because she doesn't have feet. Still interested? It will only set you back $3.9 million. And your feet.

If you're such a diehard Disney fan that you just have to own their Haunted Mansion, contractor Mark Hurt built a replica in Georgia, and it can be yours for only $873,000. The bathroom lights are programmed to flicker, the faucet plays creepy music, and it even has that mirror with the ghost in it. Now, you might chuckle, since it's just a copy of a haunted house so it can't possibly be haunted for real, but keep in mind that this is exactly what someone would do moments before being disemboweled by an actual ghost.

Because it's always a good idea to buy the home locals call "the spook house", you should definitely buy this 150-year-old farmhouse in Olson, New York. There are said to be 12 malicious ghosts roaming the property, including a demon-possessed teenager, a young woman who committed suicide, a priest, a psychic and paranormal expert who all attempted to solve the ghost problem but instead died and became part of it, and an obsessive compulsive ghost that enjoys playing Jenga with the brick chimney. There's also a trouble-making spirit that relishes taking control of visitors' cars and crashing them into trees, which is probably infuriating since most auto insurance companies don't cover ghost possession. The real estate agents are only asking $289,000 for the house, but you could probably low-ball them because of all the murders and the lack of kitchen space.

The Maplecroft Estate doesn't seem to generate a lot of interest, perhaps because it's the former residence of axe murderer Lizzie Borden. Real estate agents have hacked and chopped the price multiple times and now it can be yours for just $650,000. Before you put in an offer, however, you should know that Borden's funeral was also held in the house, so it's basically 100% fact that her ghost is in it. None of her stuff has been moved either, so it's all-but assured that you'll be axe murdered the moment you try to update the wall art.

It's the Ma Barker gangster house! This is the home in which famous gangsters Kate "Ma" Barker and her son Fred lost their lives in the longest shootout in FBI history on January 16, 1935. All the bullet holes and blood have been cleaned up, but you just know the mess reappears every full moon. And, while their bodies were removed from the house and put on public display, the mother and son are said to remain, obviously. If you're into sharing a home with a family of violent, vengeful gangster spirits with an affinity for defending their home from unwelcome intruders, this place is definitely your joint. You'll love nearby Lake Weir, right up until you're shot by a ghost.

For just $799,000, you could own this -- wait for it -- ABANDONED MILITARY HOSPITAL. It goes without saying that a lot of dead marines haunt the place. But it has an iron spiral staircase and that's tough to pass up. It's also tough to walk up, you know, because it's packed full of ghosts.

Designed by Lloyd Wright, the son of Frank Lloyd Wright, this 'Mayan Revival' styled home was the scene of the Black Dahlia murder. You read that right: decorated with artifacts that definitely came with evil spirits and the scene of an unsolved murder. The only thing this home is lacking: a good night's sleep for the sucker that buys it. Enjoy your Mayan death house.

OPENING UP!

How to view an open house like a real estate pro
By: Jill Krasny
Business Insider Oct 9, 2012

As the housing market slowly improves, more consumers are finding themselves in the market for a new home, or at least one worth dreaming about.

One place they start their search is an open house tour, though they can forget these are helpful for more than just checking out the kitchen’s color scheme.

Open houses are a smart way to gauge whether a listing’s catching heat and if it’s worth seeing again in a private showing.

“If you’re just getting started with the process, an open house tour is like a get-out-of-jail-free card,” says Zillow.com real estate expert Brendon DeSimone. “It’s free, you can go because there aren’t restrictions and it’s a great way to learn the market.”

To his mind, the primary thing home shoppers overlook tends to be the most obvious: the crowd. Observing other shoppers is key, he says, as that’s the best way to gauge the market’s response to the home.

“If you like the house, watch the people. Is it packed? Are they hovering around the agent?,” he says. If so and if they’re asking pointed questions as well, you can bet that there’s serious interest and the listing is going to go fast.

Another strategy is to observe the agent, he adds.

“If you go to a house and you like it but no one’s there, maybe there are issues there,” says DeSimone. “You should watch the listing agent’s reactions because he wants to see the response to the house and how crowded it is.”

But don’t miss the opportunity to make small talk with the seller.

“You should ask why he’s selling, nothing rude, just what’s the story,” DeSimone says. “What’s their motivation to sell?” That should give you a feel for the pricing and whether the listing is gathering dust.

Questions like, how many days has the home been on the market?, or Have you lived here for a long time? should get the conversation going. Perhaps there’s a looming job transfer, or the seller is just moving down the street.

“If they’re not motivated you won’t want to waste your time,” says DeSimone. But at least you’ll know where they stand.