Real Estate News from Chad & Scott Campbell July 2018   

 
Purchasing a home is an emotional time when serious mistakes can be made by even the savviest of buyers. This month's article highlights some common blunders that can cause a serious case of buyer's remorse.

We also examine the advantages of taking a staycation this summer as well as a few tips on how to naturally keep away those pesky mosquitoes.

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!

Chad & Scott

In this issue...
Bank of Canada Rate Update 
Bank of Canada hikes rates by 25 basis points in July.

In line with financial market expectations, the Bank of Canada announced on July 11th, 2018 it was raising its trend-setting overnight lending rate by a quarter of a percentage point to 1.5%.

The Bank made it very clear that further interest rate hikes are on the way but reiterated that it will be taking a gradual approach to future increases, guided by incoming economic data and a recognition that the economy is more sensitive to interest rate movements now than it was in the past.

The Bank indicated it still expects the Canadian economy to grow by around 2 per cent over 2018-2020. It also recognized, “household spending is being dampened by higher interest rates and tighter mortgage lending guidelines,” although “recent data suggest housing markets are beginning to stabilize following a weak start to 2018”.

By contrast, exports and business investment are improving, despite being restrained by recently imposed “US tariffs on Canadian steel and aluminum imports and by uncertainty around trade policies”.

It specifically identified “more trade protectionism [as] the most important threat to global [economic] prospects.” It also included the possibility of stronger debt-fueled Canadian spending and a potential housing price correction in “overheated markets” as risks to Canada’s inflation outlook.

As of July 11, the benchmark five-year lending rate was 5.34%, where it has held since it was bumped by one-fifth of a percentage point on May 9 after having remained steady at 5.14% since January. It is also now seven-tenths of a percentage point above where it was one year ago. As of January 1, 2018, all mortgage applicants must qualify for financing based on an interest rate no less than the benchmark five-year lending rate, as published on a weekly basis by the Bank of Canada.

Canada’s major chartered banks advertise five-year fixed mortgage interest rates ranging from 3.74% to 5.59%. Homebuyers can often negotiate a rate below lenders’ advertised rates depending on their creditworthiness and the degree to which they do other banking business with the mortgage lender. The next interest rate announcement will be on September 5th, 2018.

How to Avoid Buyer's Remorse 
A bit of advanced planning will help you avoid buyer’s remorse.

Buying a home can be an emotional roller coaster which is why it's so easy to make mistakes. Here are a few common buyer blunders to be aware of:

  1. Not Thinking Ahead - If you’re hoping to start a family in your new home one day, it pays to consider features like local parks and school zones.

  2. Buying a Home that's too Expensive - Buyers who overextend themselves are often forced to sell at a loss. Avoid temptation by only viewing homes that are in your price range.

  3. Bad Location, Bad Location, Bad Location - Determining the location that best suits your lifestyle is critical so consider proximity to public transit, schools and other amenities.

  4. Choosing the Wrong Home - Make a list of all the features that are essential to you. It's easy to be taken in by curb appeal, but walk away if it lacks anything that you’re unable to live without.


  5. Uninspected Circumstances - Just because a house looks solid doesn't mean all is well behind the scenes. Making an offer conditional on a home inspection will help eliminate any regrets.

  6. Acting too Slowly - The home you fall in love with could be gone tomorrow if you wait too long. Do your research ahead of time so you'll have the confidence to act swiftly when the time comes.

  7. Not Using an Agent - It's important to have an agent to help you make crucial decisions, negotiate the offer and explain the conditions in order to have a positive experience and avoid buyer’s remorse.

Buying a home can be an extremely emotional process so it's important to stay grounded in order to avoid errors that could cause regret. If you conduct your research ahead of time and are well aware of your wants and needs you'll be able to move forward with confidence and peace of mind. If you ever have any questions about real estate, please don’t hesitate to get in touch.

There's No Place Like Home 
Exploring your local area can be just as much fun as going away!

When you go on vacation, not only do you have to pack and plan but you also have to arrange for someone to collect your mail and look after your pets.

Gas prices also take a huge toll on vacation budgets so this year, consider unwinding locally with a staycation! Here are a few ideas:

  1. Be a Tourist - Contact your local tourist board so you can plan a trip as if you were visiting your area for the very first time.

  2. Take a Hike - Check out a couple of local community trails that you’ve never been on before.  Enjoy a hike, bike ride, picnic or geocaching experience.

  3. Overnighter - Head out to an unfamiliar place an hour or so from home to experience a true getaway.  Book a night at a campground to really get into the spirit!


  4. Dine Out - Visit a few restaurants that you've been meaning to check out and research  specials such as happy hours or 2 for 1 promotions so you can plan around the deals!

  5. Kids Stuff - Involve your kids by letting them each pick a new attraction to visit. Nearby amusement parks, museums and summer festivals offer endless hours of fun.

Staying home and seeing your area through the eyes of a tourist will give you a new appreciation of where you live. Not only will you save money but you'll also reduce your carbon footprint while supporting the local economy. Best of all, you won't need a vacation after your vacation!

Natural Mosquito Repellents 
A few natural alternatives for all you mosquito magnets out there!

It’s so unfair :(  Whenever the weather turns nice, we have to lather ourselves in chemicals so we don’t get chased inside by swarms of mosquitoes. Here are a few natural solutions to consider:

  1. Go Natural - Make homemade sprays and lotions with essential oils such as lemon eucalyptus, lavender, mint or tea tree oils.

  2. Not on My Watch - Eliminate breeding places by covering or flipping over backyard bowls, buckets, bird baths or any other spot where there’s stagnant water.

  3. Get your Garden On - Plant citronella, geranium, eucalyptus, rosemary, catnip and lavender in both your garden and in pots as they all help repel the little bloodsuckers.

  4. Gone Batty - Bats eat thousands of mosquitoes each night so attracting them to your yard by installing a few bat boxes is a great way to defend against skeeters.

It’s well worth giving some of these natural alternatives a try to avoid the nasty chemicals that come in spray cans. Don’t forget to also wear light or neutral shades as mosquitoes are attracted to people wearing dark clothing and avoid any heavy, perfumed scents.



PS Are you tired of playing telephone tag with agents only to hear "it's already been sold"?  Sit back, relax and let us do the work for you!  Just visit our website and check off the features you're looking for.  Whenever a home or cottage that matches your criteria hits the market, it'll be automatically flagged and emailed to you so you'll never have to worry about missing out on the perfect place ever again!

Not meant to solicit clients already under contract.