Did you know that with certain lenders you can buy your next property and build some of the renovation cost into the mortgage? You can, and certain lenders partake in this program which is called Purchase + Improvements! 

You buy your next house, say for $600,000. The lender will “reimburse” you up to 10% of the purchase price (in this case $60,000) for renovations “completed” on the property. I mention reimburse and completed as you have to pay and do the renovation first in order to get reimbursed. Once completed the mortgage for $600,000 is now $660,000, so this means you must qualify for your total end mortgage including the extra 10%. 

The funds can be used for many different parts of a renovation. I’ve had clients build garages, flooring, electrical, kitchens, bathrooms, finish basements, build wet bars, complete a suite… However the funds cannot be used towards anything like appliances or furnishings. So if doing a kitchen of any sort, plan to pay out of pocket for the appliances. 

The lender will also have a timeline that you must complete the renovation by in order to complete the program. So it is not something you can plan to renovate in 6-12 months. As soon as you get possession of the property, you hit the ground running! You often only have around 90 days to complete your renovation and when complete, you contact your mortgage broker / lender and they will send out an inspector to verify the work is complete for the finishes your claiming. After that the refund is processed and mortgage adjustment made. Some lenders may give some flex on the 90 days. However it appears most want it done within a fairly short period of time. So you are best to try to plan out, measure, and order everything as soon as possible. I’ve had many buyers use the many hours during their property inspection, to meet with different trades and companies to quote, measure, plan. 

Though the deadline is for sure stressful, a positive to this deadline is you get your update sooner and it is really a great tool to get the renovations and improvements your after. House is perfect but doesn't have the garage and you have room on your credit to fund it prior. Why not build the garage the way you want it to be built and have it included in the mortgage like it was already there!

Insuring your home consist of many factors to generate the end premium. Criteria many people are not aware of! Knowing some of this when buying your next property will help prepare you for the insurance portion of the property.

You yourself are thoroughly reviewed; from things like your martial status, age, occupation, claims history, and importantly… your “insurance score”! An insurance score is almost like a credit score as it’s generated by your credit and where it sits. Insurers cannot see your actual credit score, however they can often tell if it is good, bad or median by the range it sits by how their systems reacts with premium. This is why its hard to compare yourself to someone else’s insurance as you are not comparing apples to apples. A different credit score alone will cause a huge fluctuation in premium. 

• Example, I insured 2 neighbours with very similar properties. The one side, couple in their mid 50s, no claims with a less favourable insurance score. While the neighbours, late 30s, no claims, and a great insurance score. The younger couple premium was substantially less by almost half, which naturally you would think the older couple should be less.

  • Tip, if multiple owners. List the owner with the better credit score on the policy first,  then follow with the other names. Many insurer systems go off the primary person first listed to the policy.

  • Tip, work to try to rectify lower credit scores to help assist with saving on insurance premium. Each year when a policy renews, the rates will update to reflect it.

Next comes the property and home, where it’s thoroughly judged. It’s geocode location pulls the information in on how that specific postal code & area rates for all the different types of claims! Premium ratings and the chances of risk are generated from the different zones for each category; water zones, flood zones, house fire zones, weather zones, wild fire zones, earthquake, crime and other. This is how we all share claims, as even if we don’t have a claim ourselves and are not being charged for direct claim. The ratings for the different zones can be higher in certain areas due to losses of others. That is why each year, your policy premium will fluctuate. Which is from cost of living/inflation, rate fluctuations, along with changes in your insurance score. 

• Example, If there are a lot of house fires in a community (older community) more of the premium distribution may be impacted by the house fire rates. Which a mix of rates on the back end of things could look like the following. 40% of my premium is based off it being a higher risk for house fires, 30% weather, 15% extended water, crime 13%, other 2%, wildfire 0%. 

• Example, Alberta’s Hailstorm Alley - a colloquial term referring to an area of south and central Alberta, Canada where hail storms are frequently produced. These storms frequently produce hail that is damaging to property. This area stretches from High River in southern Alberta, northward through Calgary, through Red Deer to Lacombe and then westward to Rocky Mountain House.[1] Believe it or not, it is known to be one of the worst areas in the world for damaging hail produced by thunderstorms!

  • Did you know the recent Alberta August 2024 Hailstorm will be one of the worst storms ever for hail damage for majority of the insurance industry!

Then comes the build and finishes of your home. This generates both the replacement cost to rebuild your home to new. As well how everything rates against the different risk with the products used and their ages. Age of all, matters! The building, electrical, plumbing, roof, furnaces, and hot water tank all important factors towards generating that risks and premium. Premium wise, newer will always cost less over something old, and that is just because new means lower risk and less deterioration.

• Harder sidings such as stucco, stone, brick, metal will rate lower then vinyl siding or wood siding. Vinyl and woods damage easier.

• A Metal or rubber roof will rate lower then the standard asphalt, as they are also harder to damage.

• Gas fireplace over wood / stove rate less, as you don’t have the same sort of combustion. Lots of fires happen when the fires is out and its the chimney that caught fire / the pieces within the duct. 

  • Example, recently was a house claim on a newer built home. Fireplace was WETT inspected and even repaired in order to pass certification. Owners had fire going around 7pm and thought was out around midnight. The elbow / ductwork inside the the roof is what caught fire and burnt the whole house down within minutes between 2-3am, long after the fire was to be out! 

    • Tip - Make sure you have an approved copy of a WETT inspection for a wood fireplace if a claim happens. Often insurance adjusters expect / request a copy of this report to serve as proof you did your due diligence to ensure that the fireplace was safe and operable in the first place for use! Often there can be some responsibility that falls on the insured in order for a claim to be processed.

• Type of electrical wiring such as copper instead of the not allowed aluminum.

• Type of plumbing from cooper, pvc, pex to the restricted poly b and galvanized. 

• Have preventive features like a sump pump, back flow valve, monitored alarm system. 

Insurance is something we all have a need for. Protect ourselves, our assets, along with others! Knowing the details and how things work with insurance will help smoothen the overall process. An educate you towards a sound decisions in choosing the right insurer. Remember insurance should always be based on coverage first, then price! You want competitive coverage for a competitive price, from a reputable insurer. What is saving $500 a year over 3 years to = $1,500 saved, when the $50,000 claims only pays out $25,000!

Have an insurance question? Ask me :)

Sometimes a simple change can go a long way. I've had many buyers walk into spaces that are not fully renovated and the buyer is loving how crisp it feels, and the updates. When really it is just simple paint, floors, and new handles everywhere. I've had multiple couples argue against one another on properties they each like. Old verses new, but the old is giving a run for the money! I have also had multiple clients where I've made suggestions to help easily transform their tired space. Getting it ready to list, and put more money back in their pockets!

1) Cabinets & Cabinet Doors

Obviously a key piece to a home are the cabinets throughout. Kitchens, bathrooms, laundry, bars.... Dirty, dingy, outdated, and damaged cabinets can be a real eye sore. However, there are ways to breathe new life into old if replacement is not desired, or an option. A careful coat of paint or stain can transform the look and knock years off. Hate that the yellow oak look is from the 90s? Change the colour. Cabinet boxes are in great shape but the doors are the issue and color is not it? Try replacing only the doors, or even give them an open look and go doorless, yes doorless! I've seen clean painted cabinet box's with the doors blown off, wallpaper added to the back wall of the cabinets and dishes organized and exposed, your guessing is it old or new? I've seen rows of cabinets with certain doors removed and a rod added to each shelf for a guard rail. Even a simple change of the hardware such as handles on the doors and drawers can really transform the look from old to newer. You can also go to many cabinets stores and ask them for cash and carry cabinets options. These are cabinets that are often less in cost and already pre-built ready for the DIY.

2) Countertops

Often a full kitchen or bathroom renovation can easily get you up there in cost. However when cabinets still have life left in them. Often a new countertop is the facelift needed, taking years off the space. Counters too are a key piece of a home, as they are primary spaces we use daily. Shopping your local suppliers for slabs of stone, looking on marketplace or kijiji can be ways to uncover reduced cost of expensive product over your hardware store. There's also many options from stone, to laminate, to wood so options for different budgets. Simple inexpensive butcher block from your local hardware store or from places like Ikea can be an inexpensive way to transform that basic laundry room into a laundromat haven!

3) Backsplash 

Far to often over looked is this little piece of square footage. Smaller piece of square footage means less product = less material cost. There are many different options out there for one to take their backsplash to the next level, and remove the tired look. Even if it's a simple basic color tile, adding a nice current tile can renew the space. Or be the addition of a light pattern your looking for.

4) Flooring 

Flooring, flooring, flooring. One of the largest square footages so the cost is often there when one wants to update or replace. However, floors are often one of the items that you get a good majority of your investment back. As well floors can transform a space even when everything else in that space is still old. Damaged and old floors bare intense buyer scrutiny. So sometimes replacing them is the best for money in your pocket. I have had multiple listings where the feedback is price is good but floors need replacing. Seller doesn't want to replace so lowers the price to reflect the cost of floors. Many times I've seen the $10,000 cost for replacement become a $15,000 buyer depreciation!

5) Paint & Mud 

Big one! Paint instantly transforms the space and can set the mood. The old dirty dinged up walls are now smoothed over with mud. A fresh coat of paint can cover the years/decades of life, dirt, and exposure making all new again. Yes a pain in the butt to do, however if you are careful and patient. You can save lots of money by doing this easy task on your own, and it offers a big return on investment! Hate painting? while there are more inexpensive options. I find if you just take your time and plan your paint / clean up, it helps make it a little bit better. As once a spill happens often the feel of panic or chaos can easily follow! Make sure you lay out the plastic cover and have "multiple" wet rags near for any spills as you go. For sure a rewarding feeling after you finish painting and clean up and put everything back in place!

6) Window Treatments 

Material and placement can easily set the time period of your home. Windows naturally draw our eyes to them. So being it material or shades that frame your windows. Paying attention to this little aesthetic detail can really help achieve a renewed feel. There are many different options available for all budgets. Simple repurposing and repositioning existing rods can be an easy way to save money and create a new look. When placing the curtain rod you should be placing the rod roughly 1-3 inches below the ceiling or crown molding and 8-12 inches above the window, or find the split between the distances you have. With less distance from the ceiling, and more distance from the window. This placement creates an illusion that the ceilings are taller and more grand. You should also use a rod that extends out past the windows if possible. That way when your curtains are open they are not blocking the window.

7) Wallpaper & Accent Walls

Adding some detail can really be art for the home. A tasteful beautiful wallpaper when its not everywhere can be a great way to make a space stand out. Simple placement of inexpensive wood trims in whatever geometric pattern you like and a coat of paint can transform the basic wall into an accent feature in the home.

8) Lights

Camera, action! Lights like windows and their treatments, draw in our attention. They light up the space when we turn them on. They come in different shapes, sizes. Some hang down commanding a view, while others are simple and finely recessed into the ceiling. They can be used as statement pieces focusing on our dining tables, our kitchen islands, fireplaces, our stairways, and our entries. Light fixtures can easily set the mood, so paying attention to how they look, and also how they light up is important. Fixture looks good but lighting just feels off? Add a dimmer switch and make sure the bulb is a white or yellow that you like! Can't afford to update the fixture or don't know how to? There are many options available on all budgets. Not wanting to replace but want to repurpose? Remove the bulb and paint the fixture a current color your after. Check the shade and how it attaches to see if there is options to replace just the shade around the bulb instead of replacing the whole fixture. You can often find option online and in hardwares. 

9) Mudroom

A mudroom of any sort at an entry can add warmth to a space as well as great purpose. There are many cost effective ways to achieve this. A seat, shelf, hooks, color can be all you need. You can buy expensive pieces made custom for the space, buy premade units online, or create your own design. I've seen simple and creative ideas. A great piece I saw was a client flipped over the their Ikea book-shelving unit on its side, so its now a rectangle on the ground. They lined it with nice cushion on top. Added a painted wood board against the wall behind it with hooks, and a floating shelve on the top. Did I know it was a couple hour weekend project? Nope!

10) Built Ins

These can sometimes add to the space or feel like to much leaving the owner wondering what to do and if they should rip it out. However removing these amazing pieces of woodwork may not always be the best route. Sometimes a new color, staged or repurposed in a different way can be all it needs. I've seen to many old wood builtins removed and now an empty space the owners are looking to try to fill. However I've seen so many amazing repurposed ideas over my years. As a realtor I love seeing the amazing parts of real estate and have been privileged to see some really neat things. For builtins I've seen sanded and stripped, re-staining with rich colors and a brand new look. Lights added to certain shelves to create certain focal points on dinnerware and art. I've seen shelving disconnected but then reconnected using very visible iron piping for connections, adding a rustic look. One I remember that stood out was a wine cellar. The wood was refinished to look new, lighting added, some shelving removed and replaced by wine racking, and a glass enclosing wall with doors creating the enclosed look.

Purchasing a condo, when buying a condo you are buying into a piece/partnership of a Condo Plan. A condo can be a building, a duplex, a townhouse, to even a detached looking home. Condo ownership comes with strict rules "Bylaws" to abide by for your home/unit/building/complex. Each complex will be similar and different with their rules/bylaws making it important to know what these rules are that you are to be living by. The bylaws can apply to things like pet restrictions, age restrictions, tenancy restrictions, business restrictions (your personal business or AirBnB), parking restrictions, building guidelines/restrictions, and more! So when your buying a condo you have to keep in mind, there are rules. Want to renovate, or do a certain type of flooring in your unit? Your bylaws may have a flooring restriction to the type of flooring your allowed to use! All Condo Corporations must abide by the Alberta Condominium Property Act basic guidelines of their operations. Which sets out the basic rulings required to operate and how condo’s will all be similar. From there, differences will be created between the different condo complex’s through the bylaws they create and enforce.

The Acts states condo funds must go into a Reserve Fund (account) which is for paying for the maintenance, repairs, and renovations of the Condo Plan (building/complex). To ensure this Reserve Fund is being properly funded, a Reserve Fund Study must be done. These studies are required to be completed every 5 years and are a professional, comprehensive inspection of the condominium's depreciating property (the building, roof, heating system, plumbing, entrance doors, elevators, parkade, paint on walls, eavestroughs, piping, etc.). The study confirms what the current condition are, and helps establish suggested timelines for costs of repairs, renewals of certain things (Example, hallway carpets in 3 years), and also provide an idea of when items will potentially be end of life. Which all this information is needed to determine what will be coming up over the coming years, and if the Reserve Fund balance is accurately going to fund those needs as they come up. Which if it is not, monthly condo fee’s often increase. As well assessments are often issued to pay for shortfalls or upcoming projects.

The Condo Board is made up of unit/home owners of the Corporation (usually 2/3rds are owners/mortgagees). The board runs regular meetings (usually monthly) called "Minutes / Minute Meetings". This is where they will discuss the condo complex and its operations. Concerns that come up with the complex, things that are broken in the building, insurance claims, tenant issues, plans to upgrade, renovate, remediate, as well as visions for the future. All of these bits are discussed during meetings. Being part of these meetings is very important as an owner! As this is your access to being part of the conversation and decisions! Remember if the board wants to split the $80,000 parking lot upgrade as an assessment to each owner. Instead of simply withdrawing it from the "Reserve Fund". These meetings is where those decisions are voted on and made. Which all of this information in the end is translated and held by the management company in the condo documents. 

Each condo board will have some sort of property management company (some choose to self manage) to run the condo’s affairs. The management companies role is just that, manage. Manage the building/complex repairs, maintenances, snow removal, bills, financials. As well, holding all the corporations information and documents together in one place. Which we call all these documents "Condo Documents". Condo Documents consist of all the important information that are key pieces required for your purchase!

Just because its professionally managed, and has a board filled with members / owners. Does not mean or ensure it is being done right! It is extremely important to have this Condo's health & management professionally reviewed and assessed! Which this should always be done through a professional Condo Doc review company, whom specialize is just reviewing these type of documents! One of the most conditions in your purchase is this review of these condo documents! Think of it as part A to your inspections of the property. A condo document review often uncovers the financial and operating health of the complex. Are you buying into a money pit with problems, mismanaged, and assessments ahead? Or does this complex appear to be well managed, financially stable, and a great place to invest in? Keep in mind you will still want to have the interiors of the unit inspected (part B) as this will be where you tell the condition of your units interiors. The appliances, the mechanicals if any, the seals in the shower, the plugs on the wall that should be changed to GFI, etc. All interiors are often your responsibility which you can find out what is your responsibility and what is the condo corps responsibilities by looking in your bylaws. The building health and financials, all that information is located within the condo documents and will be a key deciding factor of your purchase and this partnership! 

Feel free to reach out with any questions you have!