INSIDER WAYNE COCHRANE’S REAL ESTATE

January 2013

Your Neighbourhood Real Estate Professional

Wayne Cochrane...www.mooving.ca

Inside this Issue:

Why Condo Fees Are Your Friend

Replenishing Your Wealth of Professional Knowledge

Natural Flooring Choices

Inside 2012 Global Property Market & The Real Estate Forum

Which Real Estate Decisions Will You Make in 2013?

European Housing Concept Promotes “Happier, Healthier, Living”

Toronto sales rep Andrew la Fleur says when he meets first-time buyers and asks them, "What are you looking for in a condominium?" a common answer is, "Low maintenance fees."

"When I hear this, a little orange flag goes off in my mind as it's time to bust up another condo myth," he says. The myth is that if you buy a condo with few or no amenities, you will pay significantly less in maintenance fees than you would with a building that has a pool, sauna or rooftop terrace.

"This is simply not true," he says. "Maintenance fees at most condo buildings in Toronto, whether they are loaded with amenities or not, tend to settle around 50 to 60 cents per square foot."

The reason for this, says la Fleur, varies from building to building, "but the best answer is economies of scale - that is, the buildings that have a lot of amenities tend to be the largest buildings and therefore have a huge number of suites to spread the cost over, whereas the buildings with no amenities tend to be smaller buildings with very few units."

He says the older the building is, the higher the fees. How well the building is being managed is also a consideration, he says.

A recent survey by TD Canada Trust says that 23 per cent of people who recently bought or intend to buy a condo say that paying condo fees still feels like paying rent, so they are "saving up to buy another place where they won't have to pay the monthly fees".

Where they will find a house with no maintenance fees at all is a bit of a mystery. Most condo fees include the cost of maintaining the common elements of the buildings, including landscaping, snow removal, exterior maintenance and repair

and window cleaning. Some have amenities such as gyms, saunas, swimming pools or tennis courts, which are also included in the maintenance fees. Some may include security.Depending on the building, maintenance fees sometimes cover heat, hydro, cable television and water and sewage charges. All of these items also have to be paid for separately if you buy a freehold house.

While it's tempting to shop for a condo with the cheapest maintenance fees, that could also be a warning that it's not the best investment. In 2010, the board of a condominium building in Toronto took the unusual step of going to court to ask the judge to impose new maintenance charges on its residents. For years the condo residents turned a blind eye to maintenance issues in the aging structure, for the sake of keeping condo fees low. The court ruled that successive boards of directors of the condo kept the common expenses unreasonably low, "neglecting repairs and maintenance and postponing the inevitable day when the chickens came home to roost. That day has come and gone."

The residents were hit with a whopping charge of $900 a month in condo fees. Many tried to sell their units but were unsuccessful.

A well-maintained condo unit has a much better chance of appreciating in value and is more attractive to buyers than one that is run-down and tired.

Anyone buying a condominium unit should make sure they see the building documents that outline the finances of the condo corporation, the size of its shoulmake sure they see the building documents that outline the finances of the condo corporation, the size of its reserve fund for maintenance, and special assessments for anticipated repairs.

Why Condo Fees Are Your Friend Written by Jim Adair

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social media communication with tips and

Condominiums and Townhouses

on the Halifax Common

92% SOLD

JANUARY ISSUE

�

You should work with a real estate pro-fessional and a good lawyer to help navi-gate these shark-invested waters.

The TD Canada Trust survey says that four out of 10 Torontonians are willing to pay more than $400 a month in mainte-nance fees, and 17 per cent are willing to pay more than $600 in fees.

"It's clear that the convenience of condo living is important to many Torontonians, and they are willing to pay the monthly fees," says Farhaneh Haque, director of mortgage advice for TD Canada Trust. But the survey says only three of 10 condo dwellers have built a buffer into their budget to prepare for a possible condo fee increase. Another 36 per cent said they would have to cut back on their spending, but they could afford a mainte-nance fees increase if it happened.

"The possibility of a fee increase can be a little unnerving," says Haque. "While there's no way to 'lock-in' to a monthly fee like you can with a mortgage, you can prepare for a fee increase by building a buffer into your monthly housing budget:that way if fees go up, it won't be a major shock to your cash flow. If they don't increase, you have extra money to put aside in savings or toward your mortgage."

Fees generally increase every year at the rate of inflation, but each condo board sets their own rates.

Sales rep Winham Wong of Sutton Group - Associates Realty runs a website called Condofees.com, where you can compare the maintenance fees for Toronto-area condos. Written by Jim Adair

You expect the best possible results when you buy, sell, or lease real estate, or when you arrange financing. How do you know that the real estate and mortgage professionals you trust understand what "best possible results" means for you in the current market?

By definition, we expect professionals to know more, and to know how to do more with what they know, than consumers do. That’s why we hire them. Consumers must rise to the challenge of deciding which professionals will live up to expectations, and who will not - before a contract is signed.

How sure are you that real estate and mortgage professionals know more than you do about what’s going on in their industry and in the economy at

large?

� Do you ask your professional advisors which sources - online and off - they rely on to keep them ahead of mainstream media’s public rants on interest rates, real estate prices, and market fluctuations? Their reaction may tell you as much as their list of resources.

� Certificates on the wall are not proof of continued proficiency.

Credits earned for continuing education programs and conferences can be based on attendance, not on proven knowledge gained, or on improved service results. The best in any profession know that merely showing up for a professional development course does not ensure learning takes place. Attitude matters.

� Self - directed learning does not ensure that the most essential professional skills are improved, or the most relevant knowledge up - dated. Often continuing education programs are selected for convenience of delivery, not subject matter. Committed professionals

understand that professional development education should be directed at improving services and results for their preferred target client.

When interviewing professionals, add a question or two about how skills are enhanced and knowledge is kept up - to - date. Real estate and mortgage professionals have many resources open to them, but knowledge transfer happens only through committed intent and the drive for improvement.

� Real Estate Forums Abound

With dozens of real estate conferences to choose from each year, professionals have a range of opportunities for keeping up - to - date on selling, leasing, investment, development, and financing of residential, office, industrial, retail, and multi - unit residential real estate across Canada. Most programs stress trend analysis, business strategies, and evolving opportunities. "Green" practices and sustainability approaches are also important topics.

For instance, the Global Property Market Conference (GPM), held in November in Toronto, meets "the needs of those active in acquisitions, development, equity investment, financing, joint ventures, and sales of all forms of investment properties and real estate - office, industrial, retail, multi - unit residential, land, hotels and hospitality" - by facilitating "the exchange of strategic information on investment and development in tier - one countries and emerging markets around the world."

� Mortgage Forums Flourish

Mortgage Forum 2012 just wrapped in Vancouver. Mortgage professionals learned about trends and population dynamics from industry leaders like demographer and economist David Baxter ("Charting the Future: Long run trends and the Canadian mortgage industry"), and they improved

Replenishing Your Wealth of Professional Knowledge Written by PJ Wade

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Give me a call...

Wayne Cochrane EXIT Realty Metro

wayne@mooving.ca (902) 830-4761

WAYNE COCHRANE’S REAL ESTATE INSIDER

social media communication with tips and insight from social media stars like Twitter founder Biz Stone ("Open, In-formed, and Engaged: A Changing Communication Landscape").

� Related Industry Events

The Interior Design Show Toronto (IDS), which runs January 24 to 27, 2013, is an excellent example of an information exchange resource that crosses indus-tries, and connects professionals and the clients they serve. The IDS is Can-ada’s largest contemporary design fair for showcasing the newest and most innovative in international and Canadian products. More than 300 inspiring trade show exhibits feature both emerging and established designers, while highlighting international interior design, architec-ture, and industrial design trends. IDS brings some of the most influential archi-tects and designers from around the world to share design philosophies and experiences within the international keynote speakers program. Consumer programming is a vibrant element of this learning - by - design event. The open-ing night party has become a must - attend opportunity to mix with profes-sionals and celebrate design achieve-ments.

� Ongoing Professional Development Programming

British Columbian real estate profession-als, like their counterparts across North America, have many continuing educa-tion and professional development pro-grams to choose from each year. In most jurisdictions, professionals must complete specific and elective real es-tate programs within their licence regis-tration cycle. Without education credits, licences cannot be renewed.

When you meet a real estate or mort-gage professional, consider going be-yond the stereotypic "What’s going to happen with interest rates/real estate prices?" that most professionals are hit with at holiday parties. Instead, ask for suggestions on building your real estate knowledge. Try "Have you attended any good seminars or webinars lately?," or "Which online courses or ebooks have proven most useful?" to discover why this is a professional worth listening to. Written by PJ Wade

Today’s market offers a welcome and growing range of green products. Many homeowners are on the search for non-toxic flooring choices, abandoning the formaldehyde drenched fibers of days past.

Where does one begin on the search for new, green flooring? First, decide what type of flooring works best for your space and make the commitment to go green.

Natural hardwoods work well for bedrooms and living rooms, but don’t stand up as well to the moisture found in bathrooms. Tile is great for all rooms of the house, but is more time-consuming to install and can represent a slipping hazard. Finally, carpet is a warm and traditional touch popular for decades, but finding natural non-toxic versions can be difficult.

Next, homeowners need to decide upon a budget. There are options for all price ranges.

Let’s look at carpet. Going green doesn’t mean giving up the warmth and comfort of carpet. While traditional carpet can be inexpensive, it and its padding and glues can be steeped in formaldehyde and other chemicals.

According to the Environmental Protection Agency (EPA), “ Airborne formaldehyde acts as an

irritant to the conjunctiva and upper and lower respiratory tract. Symptoms are temporary and, depends upon the level and length of exposure, may range from burning or tingling sensations in eyes, nose, and throat to chest tightness and wheezing. Acute, severe reactions to formaldehyde vapor -- which has a distinctive, pungent odor -- may be associated with hypersensitivity. It is estimated that 10 to 20 percent of the U.S. population, including asthmatics, may have hyper reactive airways which may make them more susceptible to formaldehyde's effects.” Who wants to mess with that?

Beautiful wool carpets can be pricey, but they’ll save you big when it comes to their durability, feel, and of course green status. You can find many companies online and in your community that offer this option. Cork (renewable and recyclable), sisal, and recycled carpets are also worth consideration.

When it comes to woods, bamboo is a truly renewable source. Bamboo grows fast, very fast. It’s not a hardwood, but it looks like one. It can one of the less expensive green flooring options.

Natural Stained Hardwoods can be another great choice. The key is natural stains (and glues if applicable). Stains can leach fumes into your home for years the same way

Natural Flooring Choices Written by Carla Hill

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JANUARY ISSUE

traditional paints do. Opt for natural stains options. The ultimate plus for hardwoods is they look wonderful for generations and only need a moderate level of care.

Finally, consider the benefits of tile. Stone tiles are a natural rock. They are quarried right out of the earth and require no chemical concoction to create. It is incredibly user-friendly in maintaining and of course requires no VOC finishes!

Green flooring options are out there and within any budget! Be sure to go green when you replace your next floor. Written by Carla Hill

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"Uncertainty" has taken on new meaning as a key economic descriptor.

Real estate markets have always been uncertain in spite of the confident visions of forecasters and pundits: will markets go up, go down, or stay the same? Now, "uncertainty" involves fewer possible outcomes. For too many, it carries with it the certainty that things could get worse and that they won’t get significantly better any time soon.

"Uncertainty" was a commonly voiced reason for 2012 market behaviour at both the one-day 2012 Global Property Market and the two-day Real Estate Forum held in Toronto late November, but presenters moved well beyond this pattern to reveal 2013 opportunities in many sectors.

The level of sophistication was evident in every aspect from session dynamics, data analysis, and forecasting insight to speaker selection and presentation skills for both conferences and their knowledgeable audiences of professionals and investors. Judging from levels of audience attentiveness, and from feedback solicited and overheard, both events lived up to their hard-earned reputations.

Here are a few conference highlights that ring true for global markets and real estate developments, while carrying a parallel message for you and your real estate investments:

� "Brookfield sees, fundamentally, that things are getting better everywhere. The world is better than most people think, and we may be in the first stages of recovery, so we could be in the first stages of growth over the next 20 years," said Bruce Flatt, CEO & Senior Managing Partner, Brookfield Asset Management Inc., a Canadian real estate company that describes itself as "a global alternative asset manager with over C$150 billion in assets under management."

� Michael Emory, President & CEO of

Allied Properties REIT, said North America’s sustainable competitive advantage lies in the fact it receives "the lion share of immigration." The value immigrants place in the USA and Canada is reflected in real estate markets and community growth.

� The European markets have growing interest for global real estate investors. Investment potential in Germany, the UK, and the Nordics, which include Sweden and Finland, will increasingly attract investors, and lend stability to these markets. London has emerged as number one, over New York and Paris. Quality of living and regional growth compound to make this a sought after location for those in search of a financial safe haven and security for investments. Construction of London’s east-west transit system Crossrail, which cuts cross-city travel time to 1/3 of the present +1.5 hours, has proven that proximity to public transit is no longer merely a contributor to value for the public and investors, but a major value determinant in urban settings. Development intensification at transit stations will lead real estate market recovery.

� Multinational commercial and retail tenants are increasingly sophisticated about their value to shopping mall and office tower developers. Savvy tenants now expect to know the details of funding, related agreements, and development costs, and to be more involved in the process. Location is no longer everything. Now the quality of financial backing and relationships with investors factors into attracting and keeping the best commercial and retail tenants.

� When investing outside your country, having a physical presence at development sites is considered crucial to troubleshooting procedural, legal, and financial issues as they arise. This, coupled with at least one local partner (especially where language or cultural issues compound communication challenges) is crucial to success. Letting go of the way things are done in your own country can be another significant step

What is the world's largest palace? Word Scramble:

cptceade frefo

Go to www.mooving.ca - ‘About Wayne’ and click on ‘Monthly Newsletter Trivia’ for the answers.

Brain TeasersBrain TeasersBrain TeasersBrain Teasers

forward.

� Buying real estate in a foreign country, including one where you speak the language and know the culture like the USA, can be deceptively easy since salespeople are selling the opportunity and making it easy for you to say "yes." Complications and losses during devel-opment and on selling may cancel gains, so know how to get out with profit intact before you sign on. Pension fund and REIT managers stressed the impor-tance of the existence of Rule of Law which protects ownership and rights for foreign owners, and ensures recourse for contracts and other legal issues.

� Peter Hall, Vice President & Chief Economist of the federal credit agency, Export Development Canada, emphasized that problems arise be-cause "we don’t handle the up without excess, and do not know how to handle downs." Since fiscal and monetary pol-icy have not moved us out of this eco-nomic hole, Hall asked what would. Growth in which region or economy could trigger wide-scale recovery? Dis-counting other countries for a variety of sound reasons, he cited pent-up de-mand in the US real estate market, which is currently below the national sustainable housing level, as the driver for recovery—which may already be underway.

Attitude may play a significant role in how you and your real estate emerge into recovery. Stop talking about "going back to" or "returning to," and decide on clear improvements for moving forward, ahead of the recovery. Written by PJ Wade

Inside 2012 Global Property Market & The Real Estate Forum Written by PJ Wade

In the last weeks of what has been both an action-packed and a wait-and-see year, attention will shift from 2012 goings-on to projections for 2013 - as if anyone knows for sure.

January will see the annual forward-looking media broadcasts and pundit prognosis, and a wide range of business and online reflections on prospects for 2013. What opportunities does 2013 present you?

Think back to the end of 2011 and your forecasts for 2012. You may have made 2012 resolutions based on what you learned. How did 2012 turn out for you?

Market research company Ipsos Global announced today that while "optimism is high among participants in a new 23-country poll" carried out for Reuters news, there was common relief in leaving "bad year" 2012 behind.

Eighty percent of global respondents are "optimistic that 2013 will be a better year than it was in 2012." The poll revealed that global citizens are acting on that optimism to take fate into their own hands. Eight in ten surveyed plan to have personal New Year's Resolutions for 2013, and 55% of respondents selected improve my financial situation as the item they most want to work on in 2013. Only a small proportion would rather spend more time with friends and family (16%), improve my health (14%), ortravel to other countries (12%).

What will you focus on in 2013? In this column, we concentrate on your real estate and all that revolves around it by focussing on Decisions & Communities, and therefore, on you.

Where do you go from here with respect to your real estate goals? What have you learned in 2012 that you can act on next year. What will you deliberately avoid? For instance, the low-interest-rate environment carries opportunities and pitfalls. Have you used these opportunities to further your goals? Have you avoided pitfalls like non-tax-deductable credit card debt which is not at low interest rates? Your answers to these questions reflect what you understand about your financial knowledge, decision-making skill, and goal-setting accuracy. Your ability to self-motivate toward goal achievement is a key element in reaching desired outcomes.

� Do you react more quickly to avoid loss than you do to gain advantage? Last-minute tax filing is an example of acting to avoid loss. Advanced tax planning to reduce overall tax

costs makes sense, but many find it is not the great motivator that income tax late-filing penalties are.

� If your search for a new home or cottage uses criteria set by "what's on trend", you are following the herd rather than leading yourself. For instance, open concept living space is "in," but it is not without its compromises. If you're not aware what you give up to get "open concept" you have not explored all the options open to you.

� Wanting housing similar to your friends and peers may be a sign of compatibility, but make sure you understand where those you follow originally got the ideas that define their lives. Their reasons for acting may not match your real estate goals.

� RealtyTimes.com articles and videos provide a full array of options and pitfalls for the issues and decisions related to buying and selling all types of real estate. Thanks for following my column Decisions & Communities, and for your enthusiastic sharing of ideas and suggestions.

2013 Forward Thinking Inspiration

Join in New Year's Celebrations that explore 2013 potential. Just remember, these are all guesses no matter how factual they sound:

� Canada Mortgage and Housing Corporation (CMHC) Housing Outlook Conferences

The series of regional Outlook Conferences cover topics ranging from market and house price trends to lending and mortgage insurance. CMHC experts deliver details on their latest research. Conference fees vary.

� CMHC's Affordable Housing Web Forums

For example, on December 19, the CMHC Forum on Building / Site Selection and Design provided opportunity to tune in, at no charge, and hear speakers discuss how location, dimensions, and condition of a site, as well as the design of a building and units, impacts construction and operation costs for a project. Livability, marketability, and project viability were also considered.

� Political and Economic Forecast Events

Business and government groups across the country will mark the New Year with special events intended to provide up-to-date insight on local issues and local implications of national and global events. For instance, The The Canadian Club The The Canadian Club of Toronto hosts the 36th Annual Outlook 2013 luncheon on January 8, 2013, in partnership with the National Post. Panel members, including the National Post's Conrad Black,

Which Real Estate Decisions Will You Make in 2013?

By PJ Wade

Page 6

JANUARY ISSUE

The The Canadian Club of Toronto hosts the 36th Annual Outlook 2013 luncheon on January 8, 2013, in partnership with the National Post. Panel members, including the National Post's Conrad Black, Andrew Coyne, and Diane Francis, promise a lively overview of what's to come and why. Non-members are welcome.

What's happening in your area? Start 2013 by making new connec-tions in your community.

Onward & Upward in 2013—those are the directions that really matter! Written by PJ Wade

Active House, a Danish concept that aims to make houses more comfortable and healthier as well as kinder on the environment, has come to Canada in a 20-unit townhouse development in downtown Toronto.

"There are people out there building single homes who are driven toward using net zero energy, for example, but they are not really focussing on the people living in the house," says Nels Moxness, CEO of Velux Canada. "The beauty of Active House is that it's a balance of energy, indoor climate and the environment."

Moxness says Active House is an open concept that was created by "40 or 50 like-minded companies" into a not-for-profit organization to improve housing design. "There are academics, builders, architects:and we all want to build better homes and create a better living environment for the homeowner," says Moxness.

Using Active House concepts, the Lighthaus project in Toronto "combines all the elements that make us happy," says Tad Putyra, president and chief operating officer, low-rise for builder Great Gulf. Putyra is also on the Board Advisory Committee for Active House.

All the homes in Lighthaus are built around a three-storey lightwell topped by an automated skylight that moderates the air flow to provide temperature control. It has a carbon monoxide detector that will automatically open the skylight when levels reach a predetermined level. There are also skylights in other rooms in the units.

The light well is topped with a Velux VMS skylight – the first time this unit has been used in North America. Moxness says the unit is 200 times more thermally efficient than an aluminum skylight and is a "game-changer".

He says: "The key to it is its fibreglass protrusion, which allows the strength and slimness of the profiles. You are getting a very well-insulated thermally broken plane and a sophisticated look and no visually moving parts."

The units can also be combined to create, for example, an atrium, and are ideal for commercial applications. However, they are currently only available in Europe and will not likely to be offered in Canada until 2014, says Moxness.

In Lighthaus, energy-efficient building materials include advanced mechanical systems, low-e argon gas filled glazing on windows, extra insulation and superior air tightness, say the builders. The landscaping includes an underground cistern that collects rainwater and snow melt for garden irrigation.

The homes range from 2,200 to 3,386 square feet and each one comes with a two-car garage and a private backyard terrace. Prices range from $1.15 million to $1.4 million.

Putyra says the development is "a recognition that many families don't want to have to choose between city and suburban amenities, or between luxurious living and being environmentally responsible."

The architect for the contemporary Lighthaus townhomes is Bradley Netkin of STAMP Architecture in Toronto. "We believe Toronto can handle modern architecture," he says, while acknowledging that "we did have to deal with all sorts of local issues". The designers say the homes are modeled around family interaction and individual privacy. "Every detail, down to the placement of the furniture, is integral to our design approach," say the developers.

The units also create an interaction between indoors and outdoors. Landscape architect Janet Rosenberg

European Housing Concept Promotes “Happier, Healthier,

Living” by Jim Adair

Page 7

says the backyard terraces are designed to act as "another living room."

Interior designer Anna Simone praised Great Gulf for its approach to the project. "This is the first time that a major developer has taken the initiative to take this level of customization to the masses." Despite that fact that it's a townhome, she says 14 people can sit around the table/work island in the kitchen area, and another 14 could be in the living room at the same time. She says the key to the success of the project is in the attention to the details of the design.

Putrya says Great Gulf is convinced that Toronto will embrace the new concepts. The company is also working on a prototype of a single-family Active House in the Niagara area, but it is not ready to release details.

"North Americans spend more than 90 per cent of our time indoors and so it is important that we maximize the amount of natural daylight in our homes," says Moxness. "Daylight and fresh air refresh us. They help us think, perform better and boost our spirits." Written by Jim Adair

WAYNE COCHRANE’S REAL ESTATE INSIDER

WAYNE COCHRANE’S REAL ESTATE INSIDER

Note: This is not intended to solicit clients currently under contract.

The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA.

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Wayne Cochrane Real Estate Professional

902-830-4761 wayne@mooving.ca

More homes listed and sold by Wayne - view these homes at:

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List Today and EXIT Tomorrow!

767 Parkland Drive #205

Armoury Square

2362 June St.#1

Highland Park

45 Haverstock Drive 2307 Princess Place

5839 Cunard St. #709

Armoury Square

129 Magnate Crt

Listing Agent: Glenda White

$538,900

Kingswood North

Halifax Kingswood North

12 Tradewind Court

Kingswood

361 Kingswood Dr.

$844,700

$799,800

$449,900

$469,900

$599 900

$349,800

$384,800

$ 298,900

$395,900

Armoury Square

Sold-Jan 2013