Tembo Tips: How to Save on Moving Costs

How to save on moving costs

Purchasing a new home in the current housing market already takes quite a toll on your finances. Considering all that is involved in moving from one place to the next, these costs can add up quickly. However, there are steps that can be taken to reduce moving costs and allow you to set aside a little something extra to go towards your mortgage payments each month.

Do Your Research & Ask For Multiple Quotes

Research moving companies in your area to find out what services they offer, and how much they charge for these services. Make sure that you provide these companies with ample information regarding where you are moving to, and what you require from them. Different companies will offer different packages and rates depending on your needs. Consider the costs associated with the size and weight of your items, the amount of mileage and gas included in the quoted price, as well as the various moving supplies and number of movers that may be included in each quote. Don’t be afraid to ask questions and request a price match or discount if you come across a deal that you may not have been offered.

Consider Doing It Yourself

Depending on the number of belongings you have and the distance that you are moving, it may be more beneficial to complete the move without hiring professionals. Keep in mind, that costs do add up quickly and this may not always be the most cost-effective method. Consider the cost of a moving van, boxes, and other supplies that you will need to complete your move. Reach out to friends and family who may be willing to assist with loading and unloading; saving you from the cost of hiring professional movers. Make a list of everything that you will need as well as items that you may already have, and compare the total cost to the quotes you have received from moving companies to determine the best option for you.

Get Rid of What You Can

Reducing the amount of items you are taking with you will ultimately cut down costs by decreasing the weight of your load, as well as the number of boxes needed. Does your old furniture fit in your new space? Make sure you take measurements and are sure that everything you are moving has a space in your new home. If it doesn’t fit – get rid of it! Selling gently used items that you no longer need will also make you some money that you can use towards your moving supplies. Is the item worth less than the cost to move it? The cost to move an item should be a fraction of the cost to replace it. Don’t be afraid to sell it and purchase a new one for less than the cost of moving it.

Predicting The Future Canadian Housing Market

The Canada Mortgage and Housing Corporation is predicting that the fall in sales and property prices for the Greater Toronto Area will soon come to an end. CMHC pointed to the recent history of the Vancouver market, where a foreign buyer tax had a strong impact in reducing prices and sales volume but where the market quickly recovered. Prices and sales in Vancouver are now higher than before the foreign buyer tax was implemented. The CMHC believes Toronto prices and sales will also rebound in the medium term.

Interest rate increases have exacerbated the slight slowdown in the GTA market but were expected and anticipated. Further interest rate increases before the end of the year and next year are also being factored in by consumers and real estate professionals, and have been hinted at repeatedly by the business press. Canadian banks already have very high standards for issuing mortgages, and so interest rate increases should not come as a shock and are unlikely to dissuade the best prospective home buyers from being approved. Canadian banks’ strict regulations and tight monitoring see them enjoy exceedingly low default rates on multi-billion dollar mortgage portfolios.

In terms of prices, the average condominium cost in Toronto has now hit $500,000.00. While overall prices have declined slightly, the picture is not uniform throughout the city, with some neighbourhoods recording slight price drops and others recording price increases. Realtors are still reporting a tough environment in which to sell but also continue to remain optimistic for the long term. The factors which saw the Vancouver market recover so strongly were its strong, underlying fundamentals. A strong economy, limited space for building, a robust international reputation and great weather all propelled the real estate market back. Toronto enjoys many of the same strengths; limited supply, a strong economy, and a solid international reputation.

If the Vancouver story unfolds in Toronto, prices and sales will recover and potentially exceed pre-foreign buyer tax levels.

Tembo Tips: Save on your Remodel

Tembo Financial offers equity advances so you can receive the proceeds of your sale before your closing date. This service helps homeowners purchase a new home faster, assist with moving costs, or even help pay for a vacation or new car. But did you know that you can use advance financing services to help with renovations? Renovating can help increase the value of your property, or can help turn your new fixer-upper into your dream home. Here are a few tips that can help you save when you’re renovating your home!

Increase Efficiency, not size:

Re-organizing and equipping your kitchen or bathroom can help you avoid blowing walls to gain additional square footage. Consider which type of storage is most efficient for space, from lazy susans to vanity mirrors, you don’t need to compromise storage for aesthetic. The best of both worlds is attainable if you maximize your space and research thoroughly!

Donate your trash:

Invite your local Habitat for Humanity chapter to your home before renovating. They can help you remove fixtures and materials for later resale. You will save money on Junk Removal services, you will receive a charitable tax credit, and you are engaging in a good cause! Additionally, this is a much more eco-friendly way of renovating, as you are avoiding sending your junk to a landfill.

Long Term Savings vs Short Term Gains:

Even when it comes down to the type of paint you’re purchasing, consider the long term savings vs the short term savings. Will you need to replace it in the next couple years? If the long term costs exceed the current savings, consider splurging a little bit. You will save in the long run.

Auctions:

You can often find building supplies at a local auction for half the price of the retail cost. If you’re planning on building cabinets, this would be a great place to search for supplies. Home centers will increase prices to cover some of the overhead costs. These extra costs can easily be avoided.

Whether you’re planning on a full home renovation or a small project, Tembo Financial has various financing options to meet all of your home improvement and lifestyle needs. 

Effects of the Foreign Buyer Tax

On April 20, the Ontario government announced a 16-point housing plan aimed at improving affordability, increasing supply, and protecting renters. The plan’s centerpiece was a 15% Vancouver style foreign buyer tax on properties in the Greater Golden Horseshoe region. In less than 2 weeks, the effects of this plan and the foreign buyer tax are already being felt.

Reactions from realtors have been numerous and strong. Some are saying that the market is beginning to cool and that buying has stalled, while others are reporting that demand is showing no signs of slowing down and that interest and energy remain strong.

The first effect has been a reduction of prices for some homes by a few points, particularly low rises, detached homes, and townhomes in Toronto. Sales were also down by 3.2%. Many new homes have been placed on the market and the supply of listings has soared. Nevertheless, prices generally continue to rise by double digit figures. The increase in April was 25% across the board. The new average selling price for a home in Toronto has now hit just over $920,000.00.

The Toronto Real Estate Board has said that the huge increase in new listings is a positive sign of the market reacting to pent up demand and that if the increases continue the market will become more balanced over the long term. Listings increased by over 33% in April. Although the broader impact of the Fair Housing Plan and the Foreign Buyer tax will take more time to materialize, a close examination of the Vancouver housing market reveals some of the potential long term implications.

Since August 2016, when British Columbia introduced the first Canadian foreign buyer tax in the Greater Vancouver area, prices fell strongly and sales fell by over 25%. However, as of April of this year, prices are again rebounding, with demand for all types of property still strong and increasing. Foreign sales, however, have dropped significantly and continue to fall.

If Vancouver is any indicator, foreign sales, however small, may decline long term in Toronto and the immediate effects on prices, if negative, could correct and rise again in the long run. What is clear is that many homeowners who were on the fence previously or who were waiting to sell are listing their homes now and increasing the supply for buyers.