February, 2012 (Advice for Home Owners)
If you own a home or you are thinking of owning a home, you are on the property ladder. As you move up or down the ladder you will need advice and that’s where I come in. As your REALTOR® you have my real estate experience, loyalty, honesty and my commitment to helping you make the right real estate decisions.
The Property Ladder News delivers information through three columns. I keep you up to date with the industry through “Market Temperature”, offer knowledge to buyers and sellers through the “Home Advisor” column and provide advice about keeping up with your house as an investment through “Home Maintenance”.
I write my own articles and the information contained within is my own opinion. If you have questions or wish to comment on anything I have written, feel free to use the comment section on my website blog at www.jimperks.ca call or email me.

In This Edition
Market Temperature: February in Calgary
Home Adviser: The First Time Home Buyer Tax Credit
Home Maintenance: Sourcing the Internet for Maintenance Tips

Market Temperature
The January market saw some stabilization and as we move into February, we see the start of the most productive real estate season of the year.
On Feb 1st the House Price Index was introduced to Calgary. This is a tool for Realtors that creates a more accurate picture of pricing both by neighbourhood and by property type. This will complement the Comparative Market Analysis to help Realtors narrow the range of pricing for homes. If you are buying or selling a home over the next while, ask your Realtor to show you how the House Price Index works and what it looks like for properties in your neighbourhood.
There are two big Real Estate events coming up this month for Calgarians. The first is the REDEX or Real Estate Developers Expo. If you are interested in real estate investing , you should not miss this event. It runs sat. The 11th and Sunday the 12th at the Ramada down town on 8th ave. Tickets are $20 at the door but you can enter free by preregistering on line.
The Calgary Home and Garden Show runs from the 23rd to 26th at the BMO Centre and Corral. Tickets are $14.00 at the door. I have purchased a limited number tickets that I make available free to my clients. If you would like to attend give me a call. I can arrange for you to get tickets before the event. Proceeds for the Home and Garden Show go to the CREB Charitable foundation to support some very worthy causes here in Calgary
We’re heading into the peak real estate season as we approach spring. This is the time of year were we see the most number of buyers and seller in the marketplace. If you are looking to buy or sell, give me a call. I’ll show you how the new House Price Index works for your neighbourhood.

Home Adviser
If you bought your first home in 2011 you may qualify for the First Time Home Buyers Tax Credit. The home must be in Canada, must be the first home you have purchased or you have not owned a home since 2006. If you are disabled and are purchasing a home to improve your living conditions, you may also qualify. Watch this video for more information
http://www.cra-arc.gc.ca/nwsrm/vdcsts/2012/menu-eng.html?clp=ndvdls/hmbyrs-eng

Home Maintenance
The Internet is full of great information on just about any topic you can think of. When it comes to home maintenance, there are a number of great sources you can use to find out the “How Tos” of the work you want done. Last week I needed to do a repair on my single lever kitchen faucet. It was the cartridge type, so when it started leaking I assumed it meant replacing the cartridge. After a little research though, I found that the leak is often caused by one of three possible problems. The cartridge is worn out, the O rings need replacing or the cartridge is coming lose inside the housing of the tap because of repeated use. I shut off the water, removed the housing and tightened the screws that hold the cartridge in place. No more leak!
Before you go out and spend money on parts or a tradesperson, try doing a little online research about your problem. You may be looking at a simple fix. The website I found my information on was www.familyhandyman.com
I hope you enjoyed this edition of The Property Ladder News. As always, your comments and feedback are welcome. If you have any questions about real estate or there is a topic you would like me to cover here in The Property Ladder News, let me know.
Jim Perks
The Property Ladder Guy
403 660 6239

January, 2012 (Advice for Home Owners)

If you own a home or you are thinking of owning a home, you are on the property ladder. As you move up or down the ladder you will need advice and that’s where I come in. As your REALTOR® you have my real estate experience, loyalty, honesty and my commitment to helping you make the right real estate decisions.
The Property Ladder News delivers information through three columns. I keep you up to date with the industry through “Market Temperature”, offer knowledge to buyers and sellers through the “Home Advisor” column and provide advice about keeping up with your house as an investment through “Home Maintenance”.
I write my own articles and the information contained within is my own opinion. If you have questions or wish to comment on anything I have written, feel free to use the comment section on my website blog at www.jimperks.ca cal or email me.
In This Edition
Market Temperatue: Your 2012 Property Tax Assessment
Home Advisor: The Jewel Box Phenomenon
Home Maintenance: 13 todos with 10 minutes or less

Market Temperature
*Please Note, The City Assessed value is not the current market value of your property.

Your 2012 Calgary Property Tax Assessments
On January 3rd The City of Calgary mailed out the Property and Business 2012 Assessment Notices and the Assessment 2012 Customer Review Period is from January 3rd to March 05, 2012. The 2012 Property Assessment values are based on a July 01, 2011 market valuation and December 31, 2011 physical condition.
Here are some of the key findings in this assessment:
2012 median single family residential assessment is $400,000 compared to $410,000 in 2011.
2012 median residential condominium assessment is $240,000 compared to $250,000 in 2011.
Total number of accounts on the 2012 Property Assessment Roll is 456,000.
Total value of the 2012 Property Assessment Roll is 232 billion A 1 Billion increase over last year. The previous year saw a 13 billion increase
The typical market value residential property assessment change is down3% between 2011 and 2012.
93% of the residential properties’ revenue neutral taxes will be within ± 10% of last year’s taxes.
62% of residential properties will see a revenue neutral tax decrease due to the 2012 assessment.
38% of residential properties will see a revenue neutral tax increase due to the 2012 assessment.

Home Advisor
The Jewel Box Phenomenon
There is an interesting phenomenon taking place in the real estate market place. Although I would not say it is a trend, there is a definite indication that buyers attitudes are starting to change. The jewel box is a smaller home, usually about 1600 sq ft or less that is full of amenities and light on space. The home appeals across a wide demographic from young urban professionals looking for quality of life to empty nesters looking to downsize but not wanting to compromise on their amenities.
Typically, buying a smaller home means buying builder quality finishing in a cookie cutter neighbourhood full of first time buyers. In fact, most of the new home product in these smaller sized homes still fits this description, but there seem to be a growing number of buyers who are happy with less space. They are not looking for builder grade finishes. They want gourmet kitchens with stone countertops and top of the line appliances, high end fixtures throughout the home and quality flooring materials like hardwood and stone. They want theatre sound and built in technology to make their home run more efficiently. They want the uncompromised finishes that come in a large luxury home, but they want it in less space and a more affordable package.
There is a growing movement for the Jewel Box Home. On the internet, websites and blogs are dedicated to this movement:
http://thejewelboxhome.blogspot.com/
http://www.thejewelboxhome.com/
Here you can find home plans dedicated to The Jewl Box Home:
http://www.familyhomeplans.com/small-jewel-box-house-plans
There are many more places where you can find information on living large in a smaller space. Whether this phenomenon becomes a trend remains to be seen, but given the changes that have taken place in our economy over the past few years and the age of baby boomers, it all make sense, doesn’t it?

Home Maintenance
13 Todos with 10 minutes or lass
You’ll love these ideas. They only take 10 minutes, but they are things you need to cross off your list. If you don’t have a list, make one! I kept it to 13, a lucky number.
1. Vacuum the condenser coils at the back of your fridge.
2. Replace your furnace filters.
3. Polish your natural wood front door. If painted, surface wash it.
4. Clean the air conditioner grill and register.
5. Dust and test your smoke and carbon monoxide detectors.
6. Replace the batteries in your smoke and carbon monoxide detectors.
7. Self-clean the oven (Yes, this takes hours, but it only takes a the push of a few buttons to set it up).
8. Check your water heater for signs of leakage or rust.
9. Look for worn extension cords. Replace them.
10. Inspect your furnace. Any signs of rust or scale? Any weird noises? If so, book a professional inspection.
11. Pick a ground fault circuit interrupter outlet (GFCI) and test it. Push the Test button, check that this has popped out the Reset button and that anything hooked up to the outlet will no longer power on. Push Reset and you’re good to go. Test a different GFCI outlet next time.
12. Conduct a garage door safety check. Put it into manual mode and lift it: it should glide smoothly and stay open on its own three feet from the ground. Put a pet- or child-size object under the door and close it. It should pop up as soon as it meets the obstacle. If not, call a pro. Do not use real children for this experiment!
13. Check your emergency flashlight. Do the batteries work? If not, replace them, or consider upgrading to a non-battery powered, manual wind-up model.
I hope you enjoyed this edition of The Property Ladder News. As always, your comments and feedback are welcome. If you have any questions about real estate or there is a topic you would like me to cover here in The Property Ladder News, let me know.
Jim Perks
The Property Ladder Guy
403 660 6239

For the typical owner in today’s real estate market, the next step up on the property ladder is about a 50% increase in value. This number holds true for most couples in North America. For example, a move from a $200,000 home to a $300,000 home is a typical value increase. The step up is a change of $100,000, or 50% of the value of the first home. From there, the next step up may be to a $450,000 home and then maybe to a $650,000 to $700,000 home or more.

There are three main influences that facilitate stepping up to the next rung on the property ladder and three motivations that can put pressure on families to increase the size of their home. Facilitators are those factors that provide the financial capability for the move up and motivators are factors that encourage the move.

The first facilitator is increases in salary due to an advancing career. Having more disposable income gives the owners an opportunity to buy a larger home or a home in a higher valued location. The second facilitator is the increase in home equity with the relative change in market value due to inflation. Although this factor has been significant in the past few years in Canada, we will probably see home equity increase at a slower, more normalized pace in the foreseeable future. The third facilitator is the increase in equity due to mortgage reduction over time. As the owner pays down the mortgage amount, the relative equity in the home increases.

It is logical to assume that these three facilitators will converge to create a positive buying situation at a point of about 25% of the value in the move up home, as this would be the required amount for a down payment to step up the property ladder. Unless there is this convergence, the move up is not likely. Of course there are unknowns, such as inheritance and windfalls that can facilitate a move as well.

Motivators are the factors that trigger the desire to make the move up the property ladder. The first motivator acting on the majority of families is the need to increase living space due to a growing family. In most cases, the first move up the property ladder is motivated by the growing size of a family. The second move is motivated by the aging of family members and their need for more personal space.Teenagers need more room and they need privacy…so do the parents!

The third motivator is less obvious and it involves the desire to simplify living arrangements because the children have moved into their own homes. This move is often into what is called the “Jewel Box” home. It is fewer square feet than the previous home, but it is finished to a very high standard. Hardwood, granite, high end cabinetry and finishing throughout the home are typical of the jewel box. Although this move may not be an increase in value and equity may be recouped from this move, it is considered the last rung at the top of the property ladder.

From personal relationships to job transfers, there are many other reasons to move and many different motivators. The property ladder is just one reason owners look to change their living situation. It is a normal process that most Canadian families go through. Moving up the property ladder should be a positive experience and bring the buyer satisfaction in knowing they have made the right decision about their new home. For many Canadians, their home is their biggest investment.

Contact me if you are thinking about making a move up. I can provide you with the real estate services you need to make a successful transition from you existing home to your next home on your way up the property ladder.

Jim Perks