With surrounding communities like Cedar Falls threatening Waterloo real estate, and property taxes on Waterloo real estate continuing to go up, the City of Waterloo needed to do something to entice people back to the beautiful city. In late August, they did just that by approving plans for a City Limits Urban Revitalization Area. With this plan, the city’s real estate is bound to not only make up for rising property taxes, but also bring more people back to the city.
The plan gives a three-year property tax abatement to anyone building new construction anywhere in the city. And as more homeowners take advantage of the property tax abatement, developers and builders are certainly going to see more business too, making Waterloo even more prosperous, and Waterloo real estate that much more attractive.
The plan is the genius child of a number of city officials, developers, real estate brokers, and Councilman Steve Schmitt, who put their heads together to try and come up with a plan to increase new home construction in the city. The plan wasn’t welcomed with open arms by everyone, though. Existing homeowners of Waterloo real estate questioned why they’d be stuck paying the same property taxes, while new homeowners were cut a break. The city pointed to the future taxes and expenses of the city, saying that by encouraging economic and real estate growth now, the city will profit and be able to spread those profits to all taxpayers in the city.
Quentin Hart, Councilman for neighbouring Des Moines, a city that has also offered property tax abatements to new home construction, highly praised Waterloo for taking part in such an initiative. He also suggested that the city shouldn’t stop there in trying to further Waterloo real estate, suggesting that neighbourhood financing and infrastructure organizations might be other ways to bring more people, and more homes, into the city.
Click here to view over 100 Waterloo Real Estate Listings ranging from entry level pricing to over one million dollars.
How do REALTORS® determine the price of a property? The key element is to research the market and find comparable properties. Making comparisons is a blend of good research and market knowledge. Some basic guidelines to finding comparable homes are:
- The closer in physical proximity to the Seller’s home, the more comparable. Houses in Vancouver are unlikely to make good comparisons to similar homes in Ottawa. Some out-of-town Buyers are amazed at the market differences. This is also the case in larger communities — the house across town that looks like yours and perhaps built by the same builder does not necessarily have the same value as yours.
There really aren’t comparisons that can be legitimately made across the country or across the city. Remember the adage: Location, location, location.
- The closer in date to today for a sale, the more realistic the market indicator.
- The ability to be honest about what makes a comparison.
- The knowledge of sold prices. While a Seller may know what the neighbour asked for his/her home, he or she may not know what the final sold price was and if there were any concessions such as decorating bonus, redone roof prior to possession, etc.. The sold price, not the asking price, is the real indicator of realistic expectations.
- Properties currently on the market but not sold are a competitive indicator — if they have been on the market too long, this could be a stigma and /or they are priced too high.
- The ability to adjust prices between similar properties that have differences. For example, adjusting the price for the difference of a two car garage in one home and only a parking pad on the other, the former will have more value (if the garage is functional). If one has an updated kitchen and the other is all original from 1970, then the former will have more value. While location is key and timeliness is vital, features cannot be ignored.
- Private for Sale homes: the buyer must use caution. The mortgagee (lender) will tell you that the selling fees (commissions) are built in the price of the property. Therefore the private seller needs to lower their price by 5% to 7% to be comparable assuming that all else is equal.
Pricing a home properly is crucial to selling. A REALTOR® is trained and an expert at property evaluation.
In light of the New Year, historically low interest rates and new mortgage rules coming into force next month, there has never been a better time to examine your current debt load to see how you can save more and spend less.
Following are some steps you can take to help trim your debt in 2011:
1. Create a budget and stick to it. Budgeting offers a step-by-step formula for figuring out how to best save your hard-earned money to reduce your debt load and decrease your money worries. Start by listing your household income, then your household expenses, and review your spending habits. Keeping receipts for everything that you purchase will enable you to accurately track where your money is going each month so that you can review and make necessary changes to your plan on an ongoing basis. Examine all areas of your life from entertainment to the type of food you buy, where you buy your food and clothing, and how and where you travel. Also look at your spending personality and make necessary adjustments. Are you a saver, a splurger, a spontaneous shopper or a hoarder? Become smarter with your money and avoid impulse buying. If you find you’re spending a lot of money in one area, such as entertainment for instance, set aside a reasonable amount each month and prepare to stop spending money in this area once your budget has been exhausted.
2. Create or review your financial plan. Once you have created your budget, you can now develop a financial plan that maps out short- and long-term goals as well as emphasizes debt management. With a solid financial plan, you are less likely to leap before you look and make financial or investment decisions you’ll regret in the long run.
3. Pay off high-interest debt. Now that you’ve created your budget and financial plan, it’s time to direct those savings where they’ll do the most good in reducing your worst types of debt. While it’s a smart move to pay off your mortgage quickly, attacking high-interest debt such as credit cards and other unsecured loans should be your top priority – credit card interest rates can be in the high 20% range, while mortgage rates are currently around 4% and below. So if you have some equity built up in your home, it may be a wise idea to consolidate your high-interest debt into your mortgage. This will enable you to ease into 2011 with a clean slate. But it’s important to avoid racking up more high-interest debt once you’ve refinanced – to prevent a repeat of the debt worry cycle.
