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    Thinking of renovating? Make sure it's for the right reasons.

    Last updated 7 years ago

    Canadians still seem to have the reno bug – if a recent BMO homeowners study is accurate. According to the report,
    Canadians are planning on spending $46 billion on home renovations in 2011 – up from $45.3 billion in 2010.
    If you’re thinking about joining the masses and improving your home this year, make sure you’re doing it for the right
    reasons – or you could be flushing unnecessary funds down the proverbial toilet.
    As an example, many homeowners don’t realize that every renovation isn’t guaranteed to show them a return – and most
    of them won’t even make you your money back when it comes time to resell. According to the Appraisal Institute of
    Canada, only interior and exterior painting, kitchen and bathroom renovations have the potential to achieve a 100%
    return on investment.
    That doesn’t mean you shouldn’t renovate other parts of your home – you just shouldn’t do them with the sole purpose of
    making money upon resale. Instead, focus on home improvement projects that will actually improve your home – and
    your quality life while you plan to live there. A basement renovation, for example, might be a necessity if your growing
    family needs some extra space. Installing energy efficient windows can also help you save a lot of money on heating and
    cooling costs, if you’re planning to be around long enough to reap the rewards.
    If you find yourself in a strong buyers’ market right now – and you need to sell quickly – then you may have to forego
    some of these rules. After all, if every house for sale on your block has hardwood flooring, and your home only has 20-
    year-old carpet, you might have to bite the bullet and spend a bit of cash upfront if you want your home to sell for top
    dollar.
    If you’re wondering how much of a return on investment your coveted renovation project might get you, check out The
    Appraisal Institute of Canada’s calculator here. Above anything else, avoid launching an expensive renovation project just
    to keep up with the Jones’s – especially if it’s going to launch you into debt. No granite countertop is worth that!

    HGTV Segment on Home Inspection

    Last updated 7 years ago

    Buying a house without getting a home inspection is like buying a car without looking under the hood.  Since a home is the most expensive purchase that most people make, why save a couple hundred dollars if your future home will cost you ten times that amount in repairs?

    In this video on home inspection, you can learn what to look for in a professional home inspector.  For instance, it’s a good idea to go with an inspector that is approved by the American Society of Home Inspectors and to insist on a written report with photos.  Check out this video to get more recommendations from the experts.

    At Nelson Sousa, we recognize the importance of having a home inspected before you buy it. Our mortgage experts can help get your questions about home inspection answered, as well as answer any questions you may have about mortgages, home refinancing, and private lending—contact us today!

    Nelson Sousa Reviews - Thank you!

    Last updated 7 years ago

    • on Nelson Sousa Online
    • I want to thank you so very much for all of your help when it came to buying our home. Our journey started with the traditional route we got pre-approved through the bank, found a house we loved, made an offer, and only to find out that the bank had not understood when I said we had little to no deposit. They believed that when I said little to... More

      The Daniels Family

    Nelson Sousa Reviews - Thank you Jean!

    Last updated 7 years ago

    • on Nelson Sousa Online
    • Thanks for all the hard work and genius financing to make this beauty of a house Mine and Jean's. We pick up the keys this Friday and move in ASAP. Very pleased with your work. Looking forward to more purchases in the future Nelson.

      More
      Jean

    3 Things to Consider Before Getting a Second Mortgage

    Last updated 7 years ago

    3 Things to Consider Before Getting a Second Mortgage

    Getting a second mortgage can be an excellent idea if you want to capitalize on the equity of your home in order to pay for important things like home expenses or debt consolidation.  But before deciding to get a second mortgage, consider the following three things:

    Getting a Second Mortgage Is Great for One-Time Payments

    If you need to pay for home repairs or consolidate your debt, then this is oftentimes a great option because the interest rates are relatively low compared to credit card loans or unsecured loans.  Typically, second mortgages offer fixed interest rates and monthly payments without any annual fees.  This is worth looking into if you know what you want to buy with the money and have a plan for repaying it soon.

    Defaulting on a Second Mortgage Could Result in Foreclosure

    Just like your current mortgage, your second mortgage uses your home as collateral.  Don’t make the mistake of thinking that if you pay your current mortgage faithfully and skip out on payments on your second mortgage that everything will work out in your favor.  Keeping up with both payments ensures that you will not get foreclosed on.

     A Second Mortgage Can Be Risky if The Value of Your Home Drops

    In today’s economic climate, this is a widespread concern for homeowners.  If the value of your home is decreasing, then you might have the misfortune of owing more on your mortgage than your house is worth.  However, if you don’t need to sell your house anytime soon, then this likely won’t be a problem—just wait it out while the housing market continues to recover and enjoy the spending leverage you’ll get by taking out a second mortgage.

    Although a second mortgage can be risky, it has many advantages over other loans.  If you want assistance in weighing the pros and cons of a second mortgage or even refinancing your home, then Nelson Sousa would be glad to help.  Contact us anytime to speak with a knowledgeable, friendly member of our professional staff!

     

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