Stuff Addiction - You Have It

Stuff Addiction... most of us have it. We have become a society totally addicted to the accumulation of stuff. Some stuff we use, most stuff we don't use that often.

The government wants us addicted to buying and storing more stuff - it's good for the economy they tell us. But really it's good for the skim (taxes & fees) the government takes from everything that moves.

If we all just started circulating the stuff we already have Walmart and the government would get extremely pissed off at us. All the stuff Walmart sells today and the government taxes today already exist and sit unused in someone's home or storage unit.

I know people who have so much stuff that they fill a double-car garage with household stuff and freeze their cars outside in minus 40.

Other people have so much stuff that a whole storage industry has been created to store all that extra stuff. E Bay, Kijiji, and Craigslist all exist solely because we have too much freakin stuff.

Stop stockpiling your stuff and get it back in motion.

Here are a few of my rules and philosophies for dealing with all your extra household stuff.

1. If you have to rent, build, buy or convert space to store your household stuff - YOU HAVE TOO MUCH STUFF

2. Stored Stuff is of no use to anyone and must be set free to re-circulate in the universe. SET YOUR STUFF FREE

Here are my 4 steps to dealing with stuff I haven't touched in over a year.

1. Sell It
2. Donate It
3. Give it away
4. Throw It Out

As a full-time Realtor in Calgary, I see the effects of Stuff Addiction every day and it's not pretty. Another industry called Home Staging has been created because of stuff addiction. There isn't a professional home stager or Realtor who doesn't tell home sellers that the first step to getting a home ready to sell is to De-Clutter. This is actually a polite way of saying you have a Stuff Addiction problem you need to admit you have and deal with it.

Stop the hoarding you call collecting and de-clutter today, Don't wait until you're moving, don't wait for spring, don't wait another minute get started today.

The universe is waiting...... Set Your Stuff Free

What Does Your Life Look Like in 5 Years?

A long time ago I was watching a late-night infomercial on TV where Tony Robbins was hocking his cassette tape program on how to turn your life on a path to success. So I bought the program and one of the many things I got out of it was the idea of setting a 5 year plan for myself.

With the first day of the year 2014 only a few days away, a lot of people will be reflecting on the past year and thinking about the coming year. One thing you hear often is how quickly the year 2013 came and went. Some people feel overly stressed because nothing they wanted to get accomplished feels like it was accomplished.

Try the 5-year plan. 1 year is too short for most people to accomplish anything worthwhile. It takes time...

Get out a pen and paper (do not skip this step!) and write down what your life looks like in 5 years. The more detail the better - describe in as vivid a picture as you can - remember it's a snapshot of 5 years from now. Where are you? What are you doing? Who are you doing it with? What are you having the most fun doing? Interview yourself and write down the answers.... Be realistic!

I have been doing this for the past 25 years and I always have a 5 year plan I'm working on.

Understanding Your Credit Score: A Simple Guide

Have you ever wondered how lenders determine your financial credibility? Enter the realm of credit scores! Every individual has a credit score, and this number plays a pivotal role in your financial journey. Let's break it down.

What's a Credit Score and Why Does It Matter?

Your credit score is like a financial report card. It's a numerical representation of your creditworthiness based on your credit history. This score influences lenders' decisions on whether to offer you a loan, how much they're willing to lend, and at what interest rate.

Your Financial Footprint

Your interactions with credit – be it a credit card application, a car loan inquiry, or a mortgage – leave a trace on your credit report. Whether you're granted the loan or not, the fact that you applied is recorded.

Get to Know Your Credit Score: Soft vs. Hard Inquiries

Curious about your credit standing? You can request your credit report – this is termed a "Soft Inquiry" and it doesn't impact your score. However, when a lender checks your report, it's called a "Hard Inquiry", which can slightly reduce your score. The golden rule? Only allow credit checks when necessary and always provide written approval for them.

Accessing Your Credit Report

In Canada, two main agencies - Equifax and TransUnion - provide credit reports. While their systems differ slightly, lenders often consult both. For around $30, you can obtain your credit report from these agencies. It offers a real-time overview of your credit status and provides insights on how to enhance your score.

Tips to Boost Your Credit Score:

• Avoid impulsively applying for credit cards, even if they're tempting offers in the mail.
• Regularly review your outstanding debts and ensure timely payments.
• Believe it or not, it's not just about how much you owe, but how timely and consistently you pay.
• Always prioritize making payments on time; missed and late payments can negatively impact your score.
• If you're facing challenges in making a payment, proactively reach out to your lender to negotiate a feasible solution.

Be Proactive, Be Prepared

If you're gearing up for a significant financial move, like securing a mortgage or loan, arm yourself with your credit report. Address and clarify any potential red flags with lenders upfront. By showing proactiveness, you place yourself in a better position for negotiations.

Final Thoughts

Being in the know about your credit score is empowering. By understanding where you stand, you can chart a course to where you want to be. Regularly monitoring and taking measures to improve your credit score can pave the way for a brighter financial future. Don't let poor credit stand in your way; take charge today!

6 Rental Property Advertising and Marketing Basics

To improve the odds of getting great tenants for your rental properties you must expose the opportunity to rent the property to as wide an audience as possible.

Put yourself in the shoes of your Client/Customer. If You were looking for a great place to rent, what would your process be and what would you be looking for? If you use those questions as your guide you will be successful in attracting quality tenants.

#1 You Must Have Professional Photos.

It will cost from $200 and up and you could even get a video to post to YouTube and Other Websites. In today's digital world, everyone starts the process of finding a home to rent or buy sitting at a computer. And this makes professional pictures and videos a must-have priority. Don't cheap out here!

#2 Ad Copy

Companies spend billions of dollars on formulating ad copy trying to get us to buy their products. There are mountains of books and expensive courses dedicated solely to crafting words that move people. Don't cheap out here either. The words you write need to motivate people to call you before anyone else. Write - Re-Write - Study Other Ads - Get Second and Third Opinions - Re-Write - Re-Write.........

Your Professional Photos and Ad Copy will be used in all your online advertising and printed flyers and can be re-used whenever necessary. Which adds to the return on this investment.    

#3 FOR RENT Signs

Use a professional quality lawn sign and signpost similar to the signs Realtors use to advertise homes for sale. Add a Sign Topper or Sign Rider with the URL for a single property website that has all your pictures, ad copy and rental application for downloading or filling out online. Window Signs, Back Fence Signs, and Directional Signs on streets leading to the property. Signs.. Signs.. Everywhere There's Signs.... is not a bad thing when you are trying to attract quality tenants!

#4 Single Property Website with URL

This could be a one-page website created easily using GoDaddy.com where you can direct potential tenants for complete information and to view your professional pictures. You can add your custom URL to your email signature, and post to Facebook, twitter and other social media websites. People are looking for instant access to complete information with great pictures. Single Property Websites with unique URLs is the way to it.

#5 Neighbourhood Flyers

Here is the opportunity to combine your professional photos, awesome ad copy and unique URL into a printed one-page flyer you can post everywhere you can find a bulletin board. You can also hand deliver the flyer to at least 100 homes surrounding your rental property. This works because lots of people in the neighbourhood know other people looking to move into the community and lots of people simply move within the same neighborhood all the time.

#6 Open House

Realtors do it all the time so they do work. Schedule your Open House at the same time you are going to show the property to some potential tenants. Invite and meet the neighbours.

The Art of Investing in Calgary's Residential Real Estate: A Comprehensive Guide

Calgary, with its vibrant communities and burgeoning real estate market, is a haven for investors seeking growth opportunities. While real estate investment might seem daunting, a structured approach can simplify the process and set you on the path to success. Whether you're aiming to secure a comfortable retirement or fund higher education for your children, here's a step-by-step guide to navigating Calgary's residential real estate market.

1. Financial Readiness: Laying the Groundwork

Before diving into property investment, understanding your financial position is crucial.

• Engage Mortgage Brokers: Instead of restricting yourself to your bank, consult multiple mortgage brokers. They can offer insights into the best available options tailored to your financial situation.
• Assess and Act: After understanding your current financial position, ascertain the steps required to achieve your investment goals. It could be enhancing your credit score, saving a particular amount, or exploring different loan types.

2. Finding the Perfect Property: Navigating the Calgary Market

Your investment's success hinges significantly on the property you choose.

• Choose the Right Realtor: Realtors possess invaluable local market knowledge. Interview multiple realtors to find one that aligns with your vision understands your goals, and has a proven track record in residential investment properties.
• Market Research: Familiarize yourself with Calgary's various neighbourhoods, upcoming infrastructure projects, and market trends. This information will guide you in selecting properties with high appreciation potential.

3. Mastering Property Management

Being a property owner comes with responsibilities. Effective property management can dictate your investment's profitability.

• Stay Informed: The internet is a treasure trove of resources. Read up on property management best practices, tenant rights, and your responsibilities as a landlord in Calgary.
• Consistent Practices: Establish clear guidelines and protocols for tenant interactions. This consistency ensures that you maintain a professional relationship, minimizing potential disputes.
• Continuous Learning: The real estate realm is dynamic. Stay updated with changing regulations, market trends, and property management tools to optimize your investment strategy.

Ready to Dive into Calgary's Real Estate?

If you're gearing up to venture into Calgary's residential real estate investment landscape, I'm here to guide you. Contact me for a complimentary phone consultation and embark on a rewarding investment journey.

The Truth About Calgary Real Estate Commissions and For Sale By Owners

All prices you see quoted in the news media concerning home prices include Real Estate Fees. Those quoted prices are the Gross Prices a home sold for. The Net Price is what the home sold for less Real Estate Commissions. Typical Calgary Real Estate Fees are 7% on the first $100,000 and 3% on the Balance of the Gross Sale Price. Real Estate Commissions are paid from the sale proceeds.

As An example:

Looking at the sale of a home this way it is easy to see why some sellers choose a strategy to sell the home themselves. For Sale By Owner (FSBO's) do the math and quickly decide that they should pay themselves the Real Estate Fees. I am a Realtor and when I look at it like this, I agree. Why should I pay a Realtor when I can pay myself?

What usually happens with For Sale By Owners is the home buyers not working with a Realtor do the same math to. The buyers deduct what they think Real Estate Commissions will be and that is the offer. Therefore, in the end most For Sale By Owners (if they sell) sell for close to the same NET PRICE or lower than they would have received had they used the services of organized Professional Real Estate. Which is fair. If there are no Real Estate Companies involved, there should be no Fees or Commissions to pay.

So if it's that easy why use a Professional Realtor? Because it's not that easy!

More than a third of all MLS listings expire unsold. Professional Realtors with all their skills, resources, time and money are not able to sell 1/3 of the new listings first time out. Many of these homes come back on the market at prices that buyers are willing to pay and do eventually sell.

If 1/3rd of homes marketed by Professional Real Estate do not sell first time around, I would imagine the % is much higher for FSBO's. For Sale By Owners do not have the resources or experience to expose the home to all the Currently Active Qualified Home Buyers in the market today. Realtors do!

In fact Professional Realtors will not show a house unless they know for certain, if that is the right house an offer would be written up and bank financing is already arranged. There is no worse waste of time than showing homes to people who can't buy one to if they wanted to. However, it happens to new Realtors and FSBO's all the time.

Real Estate Commissions are negotiable. And because Real Estate Fees are negotiable, aside from the typical 7 & 3 there are all kinds of other options out there. The old adage of "You Get What You Pay For" is as relevant today as when it was first spoken. You still cannot buy a Cadillac for the price of a Volkswagen. You cannot buy a home in Mount Royal for the average price of a home in Haysboro, not going to happen.

So I encourage you to research all your options before you decide to sell your home. 

Calgary Condo Math Made Easy

4 Easy Questions will help you put your condo financial situation in perspective.

• What is Your Current Condo Fee?
• What is the Total Of All Condo Fees?
• What are the Total Operating Expenses?
• How much Cash on Hand does the Condo Board Have?

The answers to these questions will tell you:

• What Percentage of The Total Condo Fees does your unit represent?
• What is the percentage split between Condo Fees for the Reserve Fund and Operating Expenses?
• How much Cash is on hand for your unit
• Easily calculate how any Special Assessment would affect your unit.

Analyzing these numbers will lead to a few more questions.

• Does my condo fee seem reasonable for what I'm receiving?
• Does the percentage split between expenses and reserve funding seem okay?
• Does the current cash on hand per my unit seem reasonable?
• Will there be enough money for future major repairs?

Here is the results from an Actual Condo Building near Chinook Shopping Center with 26 Total Units.

Everything good and bad that happens in this building including Special Assessments

- This unit is on the hook for 4.28%

Copyright© Jerry Charlton 403 831 0842 Jerry@JerryCharlton.com

Finding Homes For Sale Is Easy….. or is it.

A search on Google for “Calgary Homes for Sale” today brought up 40 million web pages in less than a blink of an eye. Any Google search with any variation of Homes for Sale + Calgary will bring up more web pages than anyone would ever have the time to look through. You can get more specific and search for Bungalows in South West Calgary only in Acadia or Haysboro, etc. You will still get tons of web pages to scroll through and many that have nothing to do with what you are looking for.

In comparison, if I do a search in the Calgary Real Estate Boards MLS Database, I find 4,686 homes for sale.

40 million vs 4,686…. Where do you want to search for homes for sale?

In the “Old Days”, you hear Realtors past their prime talk about, how all homes for sale were published in a catalogue that only those Realtors possessed. If you knew a Realtor well, they might lend you the book, although that was against the realtor's rules of engagement. The book was a crutch for many real lousy Realtors. If you wanted to know about properties for sale, you had to talk to a Realtor or drive around looking for signs. Egos were huge amongst Realtors because they had the info you needed and they flaunted that fact.  The internet was like the end of the world for these “Old School” Realtors. Like Warren Buffet loves to say, “When the tide goes out, you will see who has been swimming naked”. Many of the Realtors who built their business and their egos on access to information quickly retired voluntarily or the business retired them.

So the internet solved the problem of lousy realtors holding the information as ransom for you to do business with them. However, the vacuum of information that once existed has now turned into a Niagara Falls of information. Before it was hard to find a tree, now the forest is everywhere and spreading rapidly.

In the Internet Age of Real Estate, every Realtor has a webpage and has it linked to the main MLS Data Base at the Calgary Real Estate Board. Many Realtors will create a single page for a single property. They advertise the same property on every website that is out there. Therefore, a single property can end up on thousands of websites, blogs, facebook pages and posts, twitter posts, tumbler posts, pinetrest posts, etc…

There is no problem finding homes for sale anymore. They are everywhere.

Now however a few new problems arise. #1, is nothing ever gets deleted on the internet. Your own personal pictures and info will be there in cyberspace long after you are gone. Same thing happens with real estate. Search through those 40 million web pages Google found and you will find properties long since sold. #2, is pictures of real estate has gotten so good… that pigs with lipstick are everywhere. Just ask anyone who has rushed out to see that hot new listing because of the awesome pictures. And when they arrive…. the only thing they marvel at are how good the photographer is!

 In the “Old Days” the primary reason you needed a Realtor was to find a home for sale. That is no longer the case. You can find tons of homes for sale yourself. Therefore, the primary role of a Realtor has changed and for the better I think. Realtors today have to help you find the tree in the forest. They have to get you even more information not readily available to help you make your own informed decisions. Realtors should not be salespeople. They should be information providers and transaction facilitators always representing you in your best interests at the expense of their own 100% of the time.

Realtors cannot represent the buyer and the seller at the same time. That is like one lawyer representing a wife and husband at the same time in a divorce. Cannot and should not be done, it defies logic. If you buy a home from the listing real estate company, you just bought as a customer in an electronics store. No one represented you. The same thing happens if you buy directly from a builder. The sales agent at the show home is paid for production by the home builder.

Most bad experiences you hear about regarding real estate started because someone representing a buyer or a seller had a conflict of interest that wasn’t revealed or was downplayed at the time of the transaction.

Realtors Conflict Of Interest will be another blog article coming soon