Real Estate Word -- The Lowdown on Being a Landlord October 2017   

 
Purchasing a rental property can be a wise investment decision but being a landlord isn’t for everyone.  This month's article outlines the various pros and cons of this real-life monopoly game.

The Saskatoon Real Estate market update is included for your information.  If you have any questions or concerns regarding your own property or a property you are interested in purchasing, please get in touch with us.  We'd be happy to provide you with more detailed information.

There are also a few tips on how to take great photos with your smartphone as well as an amazing recipe for a ghoulish Halloween punch that your guests will never forget!

Thanks so much for checking out this month's newsletter.  Please get in touch if you have any questions or comments regarding the articles, or real estate in general -- it'd be great to hear from you!

Best Regards,
Henry

In this issue...
September Home Sales Decline 
The Saskatoon real estate market saw a 19% decline in MLS® home sales in September compared to a year ago. Total MLS® sales for September of 2016 totaled 324 compared to just 262 in 2017. The year-to-date total of 2,745 MLS® sales in Saskatoon, is a 6% reduction compared to 2,935 MLS® sales for 2016. Overall, the entire number of sale transactions recorded by the association in Saskatoon and region at the end of September was 3,701 units compared to 3,957 in 2016. This translates to a 10% decline in dollar volume or roughly $140 Million dollars. The number of available properties for sale declined by around 100 units from August to September with a total of 2,082 available properties on the market. The five year average for active listings on the market is 1,797 units.

The average length of time for a home to sit on the market is 55 days, just slightly above the five year average for days to sell in September which is 46. The sales to listing ratio is a comparison of the number of sales for the month relative to the number of new listings taken. It is considered to be a balanced market when this ratio falls between 40-60%. A percentage above this range is considered sellers’ market while a percentage below is considered a buyers’ market. The sales to listing ratio for September was 34%, well below the five year average of 42%. “In a buyers’ market with elevated inventory levels it is critical to understand pricing and to properly prepare your home to compete against other homes in your price range.” cautions Yochim.

The average selling price for a home in Saskatoon for the year decreased by 1.4% to $347,043. The median price also declined slightly by 2.1% to $327,900. In July of this year the Saskatoon Region Association of REALTORS® elected to remove lot sales from the aggregate number of home sales to give a more accurate picture of pricing. This change has helped to support the average price to some degree in comparison to last year. The MLS® Composite Home Price Index (HPI) Benchmark Price increased by 3.6% to $326,700, up 3.6% from a year ago. This increase is also impacted by the removal of lot sales from the total sales volume. The Composite HPI measures the rate of change in a benchmark price for a typical home and is the most accurate indicator of pricing direction in a market.

Info provided by: Jason Yochim CAE, CRAE
Chief Executive Officer 
Saskatoon Region Association of REALTORS® 

The Lowdown on Being a Landlord 
Rental properties can be appealing but they’re not for everyone.


Purchasing a rental property that you yourself can also live in is a great way to get your foot in the door, so to speak.

It's much easier to afford a property if you have someone paying rent and the best part is you don't even have to put up with a roommate!

It's also easier to maintain your investment property if you're on site to cut the grass and perform other general repairs.

Finally, you’ll be able to write off a portion of your mortgage interest, property taxes, insurance, utilities, maintenance, etc. come tax time.

There are however a few points you’ll want to take into consideration as being a landlord can sometimes be challenging and if you don’t treat it like a business, it won’t be a success.

For instance, having an emergency fund is essential as you’ll be responsible for immediate problems such as a broken furnace or leaky roof as well as overseeing ongoing maintenance.  It's also common to be in between tenants from time to time so you'll have to budget for lost rent.

Furthermore, even the most reliable tenants can be late with their rent which will turn you from investor to collector.  Dealing with disagreeable tenants can also be hard work.  If this is something you feel uncomfortable with, you may want to consider hiring a property manager.


As with any property purchase, it's important to seek professional advice from your real estate agent to ensure you buy the right property, at the right time, in the right location.  If you'd love to operate your own business and are able to plan for the unexpected, being a landlord might be a great fit for you!

Picture Perfect Smartphone Snaps 
Fancy filters aren’t the only way to make your photos pop!

Smartphones now have digital cameras that are capable of almost anything!  Here are a few simple tips on how to take fantastic photos:

  1. Avoid the Zoom - The quality of your photos will be much better if you crop instead of zoom.


  2. Clear View - Clean your lens as the grime that collects will cause your images to turn out dark and hazy.


  3. Rule of Thirds - Create natural looking photos by positioning the focal point a little to one side instead of in the middle.

  4. Add an App - Android and iPhone devices have various apps that are loaded with great features to help make your pictures pop!

  5. Play with Perspective - Take photos from unique angles such as kneeling or lying down.  If you’re taking a selfie or a portrait of another person, hold the phone a little higher.

These tips will help you take professional looking photos that you’ll be proud to show off!  Just be sure to keep an eye on your storage space as there’s nothing more frustrating than getting the “insufficient storage” message when you’re trying to take the perfect shot.

Worm Juice Anyone? 
Mix up a ghoulish drink that your Halloween guests won’t forget!

Send chills and thrills to your Halloween guests this year by brewing up a batch of scary punch!  All you need for this spooktacular blood red drink is:

  • 4 10-oz. pkgs. of frozen strawberries, defrosted
  • 2 6-oz. cans of lemonade concentrate, thawed
  • 1 bottle of lemon lime beverage
  • 1 bottle of cranberry or grape juice
  • ping pong eyeballs & plastic spiders
  • gummy worms & candy corn

Freeze some candy corn in ice cube trays.  Next, blend the lemonade concentrate and strawberries and transfer to a punch bowl with the lemon lime beverage, cranberry juice, candy corn ice and ping pong eyeballs.  Finally, garnish the punch bowl with gummy worms and plastic spiders.



PS Are you frustrated by scouring the paper and MLS sites looking for homes? Tired of playing telephone tag with agents only to hear the home's already sold?  Sit back, relax and let me do the work for you!  Just visit my website and check off the features you're looking for.   Whenever a home matching your criteria hits the market, it'll be automatically flagged and emailed to you so you'll never have to worry about missing your dream home. This service is free and there's no obligation! Click here to get started.

Not meant to solicit clients already under contract.