Wednesday, July 14, 2010

Easing the angst of downsizing

Don't put the rush job on your parents


By Patrick Langston, Ottawa Citizen
 
 
 
Downsizing: a word that summons terrifying images of yellowed college essays, Grandma’s cracked tea service, and the mountains of other stuff that we all accumulate. But it gets worse. Where to go when it is time to downsize? Or what about Mum: how are we ever going to convince her to trade the sprawling family home for a berth in a nursing facility?


Doug and Judy Robinson don’t have all the answers. But they have gathered some very good suggestions into their just-released book The Best of the Rest: Downsizing for Boomers and Seniors ($19.95 from General Store Publishing House; online at www.chapters.indigo.ca and www.amazon.com).

The husband and wife team wrote the how-to book from experience. Owners of Ottawa-based Senior Moves (613-832-0053, www.seniormoves.ca), the retired teachers have helped over 1,800 seniors downsize since 1996.

The Robinsons recently launched their book at the Westboro location of Amica, a high-end retirement home chain. As nattily dressed residence staff prepared the adjacent dining room for the evening meal, friends, family and business associates thronged around the Robinsons in Amica’s lounge. Clearly, the couple has struck a chord with their downsizing expertise.

"The focus of the book is, ’Here are some options for your change in lifestyle,’ " Judy said in an interview. The chatty chapters deal with topics like knowing when it’s time to move, aging in place, and choosing a nursing home or residence. They also cover such potentially fraught issues as helping ease Alzheimer’s sufferers into new surroundings and the minefield of intergenerational households (think, elderly parents with a move-in, divorced daughter and her boisterous little boy). As well, there’s an entire chapter on discarding a lifetime’s accumulation of stuff.

The Best of the Rest is an easy read thanks to its tips, checklists, questions to help in decision-making, and telling anecdotes from the couple’s business and personal experience.

Even if you’re not downsizing yet or helping aging parents do it, there are good reasons to take the book’s advice seriously. "It used be that we just moved 80- or 90-year-olds, but that’s changed," says Judy, adding that many empty-nest baby boomers are now looking to downsize. "With all the boomers coming along, if you’re 45 to 60 and haven’t put something in place for your old age, you’re going to be in trouble." Pointing to the limited availability of housing for low-income seniors, she said that Canadians are "treading water now" when it comes to having sufficient retirement facilities.

Their advice on getting rid of stuff when the time finally comes to downsize? "You just have to make concessions," says Judy.

The Robinsons have arranged for clients to donate tools to a trade school and clothing to go to victims of fires or women who have fled abusive homes. "It’s easier if you can see it’s going where it will help someone get a leg up on life," said Doug.

Services and books like the Robinsons’ can be a boon for seniors, says Marisa Rainer, general manager of Amica at Westboro Park, during the launch. "Many seniors don’t want to make the commitment to downsizing because they don’t want to put pressure on their families — they know they’re busy."

And if you are a family member helping Mum or Dad make that transition?

"Don’t put the rush job on your parents," says Doug. "Older people already feel they are losing control. If they feel it’s their decision, they’re going to be far happier and settle in far faster."

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Condo board lords

Each condo has one, and you know what they say: If you can't beat them, join them


By Daniela Andrews, National Post
 
 
 
Canada's borders span thousands of kilo-metres from coast to coast. The country is known for its vast expanse and abundance of space. In its urban centres, however, it has experienced steady increases in population density, creating the opportunity, and necessity, for an entire industry of condominium development. I should know. In my zeal to move from the north end of the city to the downtown King West neighbourhood, I became a condo owner, finding it the most convenient (and affordable) way to live downtown. It's a decision that hasn't disappointed. My "commute" to work is a five-minute walk. Everything I need, from a dry cleaner to my favourite yoga studio, is just outside my door. And I no longer have to deal with summers of grass-cutting or winters of driveway-shovelling. But I do have to deal with the condo board.


Oh, the condo board. The focus of a love-hate relationship for many owners. Here's a little background on the way a condo runs.

Where the owner of a detached freehold house may act as the king of their kingdom, the owner of a condominium is more like a citizen in a democratic land. Owners (considered the members of the official-sounding Condominium Corporation, a.k. a the condo) elect a board of directors (also known as the condo board) whose main responsibility is to make decisions about the building, its rules and its maintenance, on behalf of the owners. The board, in turn, hires a property management company, which runs the day-to-day activities of the building, including arranging for maintenance, cleaning and superintendant services.

Members of the board are typically elected on staggered one-, two-or three-year terms, so that the composition of the board is constantly changing to reflect a broad range of expertise and experience. Boards are usually made up of three to seven members (the actual number will be listed in the condo rules and regulations) who are all owners, and new members are elected at the annual general meeting as terms expire. The main responsibilities of the board are to ensure that the building runs smoothly, that owners' best interests are represented and that the value of the condo and its units is maintained. In practical terms, that means the board makes decisions on everything from the condo bylaws, to repairs of common elements. They also set the annual budget, which may include deciding whether there should be a change in maintenance fees paid by owners. With all their power, it may sound like the condo board has the final word on all things condo-related, but board members have their own set of rules to follow; they are governed by the provincial Condominium Property Act, which outlines how they must administer condo rules, how funds are accounted for and how the corporation must save for large expenses.

With condo boards representing such a large and diverse group of owners, all with different ideas, interests and beliefs, it's not surprising that there is often dissent among some owners and the board. While one group may agree with a board decision wholeheartedly, there will no doubt be others that oppose the decision with a vehemence rivalling Lady Gaga's opposition to pants. In my condo, tensions between the board and some owners once rose to a level necessitating lawyers' letters and Internet rants, creating an uncomfortably tense atmosphere that has thankfully subsided. It's understandable how tensions can arise, however, since there seems to be a central belief that, as a homeowner, I can do whatever I want with my property. In a condo, this freedom is significantly limited. Renovations, outdoor decor, even the colour of my blinds, are all governed by the rules of my building and administered by the condo board. As we all learned in the sandboxes of our youth, when you share space with others, you have to learn to share and play nice.

One way to ensure your ideas are heard is to become a member of the board. It's not for everyone. Sitting on the board requires a significant investment of time and effort, but board members have the power to vote on decisions that directly affect their home. On the other hand, they're also on the receiving end of owners' questions, comments and complaints on what can feel like a daily basis. So before volunteering to run for any board position, weigh the pros and cons, and figure out if you're the right person for the job. Board members should have the time and energy necessary to serve their position well and become educated about the inner workings of the Condo Corp.; the condo board at my building meets monthly, but communicates informally with owners on a day-to-day basis. They need to have excellent listening skills, great teamwork skills and a sense of diplomacy that will come in handy during disagreements with owners, or even the other board members. They need to be patient, hardworking, flexible and, above all, they must keep the owners' best interests as the central focus for every decision.

Love them or hate them, condo boards are a fact of life for condo owners. The best way to handle them is to become well-versed in the condo's rules and regulations, to maintain a sense of humour and grace and, if you're up for some hard work, run for a position on the board and become a key player in running your building.

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The price of luxury

From heated swimming pools and tennis courts to state-of-the-art gyms, condo fees cover the extras


By Paula McCooey, The Ottawa Citizen
 
 
 
You'd think owning a 6,000-square-foot home would be the ultimate luxury, but it wasn't until Line Gravel and Michael Zigayer downsized to an 1,800-square-foot condominium that they started living the high life.


Last September, the couple sold their sprawling Hunt Club home to buy a condo on the 15th floor of the Riviera Towers on Riverside Drive.

It's all new territory for these suburbanites, as is the $686 condo fee they now pay every month. But they don't mind the extra expense because of the lifestyle that comes with it -- squash, racquetball and badminton courts, four tennis courts, a gym, party room, three saunas and two pools.

"It's almost a resort," gushes Gravel, 56, who hired Bernacki & Beaudry Design to renovate the two-bedroom-plus-den unit before moving in. "We have an inside and outside swimming pool. It's almost (like) hotel life where you have your own apartment in the hotel."

She admits there's something romantic about their new condo lifestyle. "It's like in the Agatha Christie books (where) people were living in hotels in those years," says Gravel of the time when Christie lived in Istanbul's famed Pera Palace Hotel where she wrote Murder on the Orient Express.

She points out that when she moved to Ottawa in the 1980s from the Northwest Territories where her husband worked with the Department of Justice, renowned photographer Yousuf Karsh was living at Ottawa's Fairmont Château Laurier with his wife Estrellita.

But what separates romantic hotel living from condo life is that condo owners are responsible for the building. If something breaks or needs replacing, it's the condo owners who foot the bill. Hotel guests can simply check out.

Depending on the building's amenities, monthly condo fees in Ottawa highrises range anywhere from about $200 to $1,300.

Town and garden homes usually have cheaper fees -- around eight cents a foot -- because they only need to cover the cost of snow removal and grass cutting.

Due to the large number of expensive amenities at the Riviera, Gravel and Zigayer's monthly condo fees work out to 38 cents a foot. They also include water, cable and parking.

There are approximately 850 condos in Ottawa with an average of 80 units per building. With so much variety available, it's impossible to calculate monthly condo fees based on an average cost per square foot, says Debbie Bellinger, real estate and condo lawyer and president of the Ottawa chapter of the Canadian Condominium Institute.

"A condo, like the Riviera, has a running track, rec centre, large banks of elevators, underground parking," says Bellinger. "A garden home community in Craig Henry has some landscaped space, some parking areas, but no amenities whatsoever. So you couldn't possibly compare."

What is important to know when buying a condo, she says, is what your monthly fees cover.

There are two components to condo fees: the operating budget used to pay monthly bills such as heat, hydro and maintenance of the building, and the reserve fund, kept for repair or replacement of major elements, like the roof, windows and doors.

Under the Condominium Act, condo corporations have always been required to create a reserve fund for unforeseen repairs. But by the 1980s and '90s, many condominiums built in the 1960s were showing their wear and owners were hit with big bills when they found out there wasn't enough money in their reserve fund to cover repairs.

To prevent these unwanted surprises, the law on reserve fund planning was revised 10 years ago to protect the owners because "there was no regulation of how much is enough," says Bellinger.

That amendment ultimately drove up condo fees.

"(The province) amended the condo act in 2000 and said condos must get studies done by engineers, architects or other qualified professionals," says Bellinger. "And they have to determine how much is enough for their reserve fund contribution. How much do they need to put away today to meet their obligations going forward over the next 30 years? And they have to follow those studies. And if they don't follow the studies, they have to tell everyone why they are not."

Karen Watts of Domicile says condo fees at the new One 3 One development at 131 Holland Ave. will cost 40 cents per square foot, with 30 per cent of that money allocated to the building's reserve fund. She says before the change in the law, that allocation may have been closer to 10 per cent.

Better safe than sorry, Watts says.

Gravel expects her condo fees will likely increase, not only because of the new 13-per-cent Harmonized Sales Tax that came into effect July 1, but because her building is 22 years old.

While dealing with her agent, Dominique Laframboise of Prudential Town Centre Realty Inc., Gravel discovered she needed to get a status certificate before buying. This certificate protects the consumer and reveals the state of the building and whether the reserve fund is adequate to cover repairs.

Marilyn Lincoln, a condo owner and author of the Condominium Self-Management Guide (available by e-mailing Lincoln at marilyncondoguide@hotmail.com) says the status certificate is paramount.

"It will tell you all the financial information that's very important," says Lincoln. "Like if there is any arrears on that unit; if the fees are set out according to the yearly budget and the reserve fund study. It will tell you what the fees are and if they expect any increases. They will tell you if there is a special assessment in the works."

For example, if the condo roof needs to be fixed, an assessment will be made to determine how much each unit will have to pay to fix it. Costs are based on the square footage of each unit.

In Gravel's case, the status certificate showed the Riveria needs new windows, and that was going to cost her $25,000 since there wasn't enough money in the reserve fund to cover the work. To avoid paying the hefty bill after moving in, Gravel and Zigayer reduced their offer, in the end, paying $390,000 for their new home.

"After that, (our condo board) will make sure they will have enough money in the reserve fund so probably they will have to increase the condo fees," says Gravel.

But she says the recreational conveniences of condo living is worth the added expense.

"My (16-year-old) daughter is doing competitive badminton, so all her friends are coming to our place to play badminton," says Gravel. "They go to the swimming pool after that, inside or outside, they go in the hot tub. They love coming to our place."

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July 13th Ottawa Real Estate Daily Market Update

Your Ottawa Real Estate Daily Market Update


New listings for Today: 125

Back on the Market: 18

Conditional Sales: 59

Sold Listings: 59

Are you looking to buy? We can get your dream home with the Dayton Davis Home Selling System and ensure your protected with the HomeLife Home Warranty System.

Are you looking to sell? We can get your home sold fast and for top dollar. Call today 613.608.5272 to find out how! or online at http://www.daytondavis.com/

Tuesday, July 13, 2010

High marks for Canada’s real estate market

National Post

Canada may no longer be the most transparent housing market in the world, but it’s close, according to a biannual survey of 81 countries.


Canada came in second behind Australia in the 2010 Jones Lang LaSalle Global Transparency index, which measures countries’ legal and regulatory environments, market strength and real estate debt transparency, among other metrics. Canada ranked first in 2008.

“Canada differentiates itself on having a combination of a sound banking system, well-developed commercial real estate lending standards and stable property markets with relatively low vacancy and rental volatility,” the report states.

The country’s large, conservative financial institutions contributed to its high ranking, as did its relatively stringent protections for investors. Canada’s largest investment banks are housed within its chartered banks, which have strong deposit bases and high capital reserve ratios, making bank runs and wholesale failures unlikely.

In addition, Jones Lang LaSalle notes that cashflow and collateral value of real estate loans are adequately monitored in Canada.

Canada and the United States (sixth place) were the only two countries in the Americas to score in the “highly transparent” category. The next closest, Chile, placed 34th (“semi-transparent”).

“The global recession which started in the United States has kept transparency levels stagnant as the flow of information, business and capital has declined,” the report says.

Also in this third-tier category with Chile were Mexico, Argentina, Costa Rica and Brazil, the only major economy to register notable progress.

Fully one-third of the world markets surveyed showed no change or declined from the 2008 index. Among the countries that showed improvement were Turkey, China, India, Poland, Portugal, Romania, Greece and Hungary.

Algeria came in last place, one of three countries labeled “opaque.” (The other two were Syria and Sudan.) Pakistan showed the largest decline from the 2008 survey.

To view the full report, visit www.joneslanglasalle.com/transparency.

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Big, green and contemporary

Not everyone wants to live small. Tyler Jones is a success story with spectacular Net-Zero homes in the Nevada desert.


By Sheila Brady, The Ottawa Citizen
 
 
 
Tyler Jones likes to be different. When the majority of American builders are looking for the ideal money-smart, small house to score sales, this Las Vegas builder is going big, impressive and green in the Nevada desert.


"I have been a custom builder all my life. My dad (Stephen Jones) is a custom builder," the lanky, blond entrepreneur and owner of Blue Heron says in a telephone interview.
"I like to take the opposite approach and build absolutely amazing homes filled with smart technologies."

The elder Jones was the green building smarts behind the 2004 New American Home when more than 150,000 builders descended on Las Vegas for the International Home Builders' Show and his son designed and built the 2009 New American Home close to the Vegas strip. Six years ago, the elder Jones built a home that used 51-per-cent less energy to heat and cool than a similar home in the Nevada desert.

The 2009 home is a top green performer, built with insulated concrete and featuring 56 solar panels, making it a Net-Zero home, which returns power to Nevada's energy grid.

"There is no doubt in my mind that we are unique and successful because of the green technology," says the younger Jones.

Last year, the contemporary 9,000-square-foot home sold before the mammoth show even opened to an investor who spends time in Vegas, says Jones, who declines to name the selling price, but says similar homes in the exclusive community sell for $3.5 million. Jones has 14 half-acre lots in the neighbourhood where Clark Gable and the Sultan of Brunei once lived. The 2009 New American home is across the street from the 51-acre ranch owned by entertainer Wayne Newton.

He is doing something right because 11 of his lots have sold, even though the average home in Las Vegas is about 1,800 square feet and sells for $140,000.

His average home at Marquis weighs in at 6,500 square feet and costs about $2 million, including the obligatory infinity swimming pool and outdoor kitchen for desert dining.

Despite the economy, the homes are a hit because of the contemporary designs that intimately connect inside and outdoor living spaces.

"They have a unique look," says Jones, who two years ago tried to go smaller with a series of 379 affordable condos in the desert.

"The economy tanked and it did not make sense," he says. The condos, ranging from 950 to 1,400 square feet, would have had an average price tag of $200,000.

But Las Vegas was hard hit by the sub-prime mortgage fiasco and homes priced at $200,000 are now priced at less than $100,000, he says. He put the plans back on the shelf, and is waiting for buyers to clear through the housing inventory of bank-owned properties.

"The inventory has suppressed prices, so I will concentrate on my nice high-end homes for now."

For the first time in its 27-year-history, Nevada's economy ravaged plans for the 2010 New American Home, with the builder losing his financing and then going bankrupt when the home was 75-per-cent complete.

This year, participants at the four-day show had to be content with doing a virtual tour of the 2010 home.

Organizers are already building the 2011 New American Home when the show returns to Orlando, Florida, next January. It will be big and filled with new technologies from the sponsors. There are reports it has already been sold.

Find out more about Tyler Jones and Blue Heron at blueheronliving.com. Visit the 2010 New American Home at www.buildershow.com.

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Deep shade of green

How a technology entrepreneur scoured the Internet for four years before building a modern, very smart home deep in Cumberland


By Patrick Langston, Ottawa Citizen
 
 
 
Goutam Shaw and Geeta Chowdhury really need to stop feeling guilty.


Despite having designed and built a remarkable eco-friendly home in Cumberland, Ont., the couple are still troubled by cutting down a corner of poplars and maples on their heavily treed property of four hectares.

"You can’t build a house without cutting some trees, right?" asks Shaw, sounding a tad defensive. "I’d like to plant some evergreens there," adds his wife, while pointing to their backyard that is also crowded with aspen and oak trees.

For a moment the pair seem to have forgotten about the recent story in SAB Homes, Sustainable Architecture & Building in Canada that details the eco features of their home, located just east of Ottawa. The magazine took pains to point out that the couple cut down trees that would have sucked 3,000 kilograms of carbon dioxide a year out of the atmosphere.

Yet their 4,000-square-foot home, which also includes a 3,200-square-foot basement, has zero emissions, meaning it is a good eco citizen. You only have to consider that heating a conventional house of the same size with natural gas would produce 13,000 kilograms of carbon dioxide a year.

It’s time to jettison the guilt. You can see the article, Build it Right, at sabmagazine.com. The detailed calculations scored their home a deep shade of green.

The couple’s design flair added a Mediterranean theme over the impressive technologies. It was Shaw, a technology entrepreneur who trained as an engineer, but knew nothing about homes besides paying the mortgage, who carefully mapped out the underpinnings of the house. From 2003 to 2007, he spent about three hours a night at the computer researching everything from construction methods to heating and cooling systems. "I investigated the life cycle of every material that’s in this house," he says. "I knew the house had to be eco-friendly and energy-efficient. That was the bottom line."

Together, the couple (Chowdhury is a patent examiner with the federal government) took architectural ideas from magazines, the Internet, wherever something caught their attention. Their design was so precise they didn’t have to make a single change during construction. Not that changes would have produced a designer-builder battle as sometimes happens: the couple acted as the general contractor.

The home’s airtight envelope employs ICF (insulated concrete form) technology with a twist. Because the production of regular concrete consumes large amounts of energy, Shaw used specialty concrete blocks from Durisol (www.durisolbuild.com) in Hamilton. The blocks are 80 per cent recycled wood chips and 20 per cent concrete with integrated rock wool insulation, and boasts an R-value of 21 below grade and 28 above.

Concrete has extraordinary thermal mass properties, meaning it holds heat for long periods in the winter. As a result, says Shaw, the blocks have an effective above-grade R-value of 36 when the thermal mass is added.

As well, unlike conventional stick frame construction where studs interrupt the insulation, there is no thermal bridging in concrete. That helps the material, when it is "charged" with heat, to hold the indoor temperature at about 20 C for extended periods. Heat is also distributed evenly through concrete’s thermal mass, virtually eliminating the islands of hot and cold that often plague conventionally constructed homes. As a bonus, in the summer the concrete will remain relatively cool, minimizing the need for air conditioning.

High-efficiency windows and doors round out the envelope. Even the fibreglass garage doors have an R-value of 16, more than the walls of many homes.

A geothermal system heats and cools the home, distributing warmed or cooled air through a radiant floor system. Fifteen temperature monitors throughout the home provide constant feedback to the system, keeping the indoor temperature remarkably constant.

Firing up his laptop, from which he can control the house’s heating and cooling system from anywhere in the world, Shaw projects his home’s energy performance on a big screen television. There, in a series of graphs and diagrams, is a real time and historical summary of temperature, energy use and more.

He frowns as he notices that the electrically powered auxiliary heater kicked in between 4 a.m. and 7 a.m. when the geothermal system alone wasn’t enough in the -25 C weather. That little problem should be resolved when he tacks on a supplementary solar heating system in the near future.

Shaw calculates that it will cost $1,900 a year in electricity to power his geothermal system. "We were spending $2,600 on natural gas for our (previous home). That house was only 15 years old and it was 2,800 square feet (with the basement)."

Seven hundred dollars less a year to heat and cool a place that’s almost three times larger — not a bad deal. He figures that even with the $60,000 cost of the geothermal system, including engineering and monitoring devices, he’ll recoup the cost in 10 years.

Shaw is no eco-saint.

He gets as big a bang out of engineering his energy-efficient home and helping to save the planet. He admits to driving an SUV, although his wife has a Prius. "Next time, I’ll look at something else, maybe an electric car."

Sinner or not, he’s built a slew of eco-friendly features into the cleanly designed, clutter-free family home.

The biofilter septic system produces 99 per cent pure residual wastewater. South-facing windows mean solar gain in the winter, heat which is soaked up by the concrete walls and handsome, tan-stained concrete floor. The generous kitchen (Chowdhury loves to entertain) features cabinetry custom made from reclaimed pine from an old barn and fast-growing bamboo.

Stairs to the second level are also bamboo, the absence of any dust on them evidence of the home’s high indoor air quality, rather than obsessive house-cleaning.

For the most part, materials in the home came from a 500-mile radius, reducing pollution associated with long-range transportation. As well, the vast majority of construction waste was recycled by the manufacturer or waste management company.

"We wanted something we were proud of," says Chowdhury of their home-building process. "It’s a good feeling that you’re doing something for the future."

All this cost the couple about $250 a square foot, including site preparation. That’s roughly 10 to 15 per cent more than conventional construction costs, Shaw says. He figures that, between energy savings and a growing environmental awareness, it’s a model that can be replicated in either single family homes or small apartment blocks, an opportunity he’s actively exploring.

If it all seems like a lot of work and effort for a place, albeit a handsome one, to hang your hat, maybe, like Shaw and Chowdhury, we need to start putting our decisions into a long-term context.

"I’ll be dead and buried by the time climate change gets bad," says Shaw. "I tell my daughter, ’It’s your generation and the one after that will be in trouble if we don’t change.’"

Ottawa Citizen

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