ARE MILLENNIALS CHANGING THE HOUSING MARKET?

Millennials represent a young age category, 15-34 years, and many are starting to plan for families while trying to determine when and where to live. The trend during the real estate boom showed that this generation was more likely to rent small apartments or lofts and live in much smaller spaces than the generation before them. They were willing to sacrifice physical space to stay in close-knit communities and larger cities, often having children while living in a one- or two-bedroom condo.

A recent survey released in May 2018 by Genworth Canada showed that almost 6 in 10 Canadian millennials are already homeowners, with more of this age group planning to buy a home in the next two years. While nearly half of new home buyers are now part of this age group, the trend continues to be investment in smaller spaces closer to the city. They are foregoing large homes in the suburbs in favour of condos and townhomes. When you consider that a home worth $260,000 in the Greater Toronto Area 25 years ago is now worth well over a million dollars, despite the recent slowdown, it’s not surprising that millennials are forced to look at other options.

The millennial generation is the first generation who are unlikely to be able to afford a home in the town they grew up in and are making concessions accordingly. With the GTA and Vancouver still offering the most promising job opportunities, this category of employee is not willing to make the daily commutes from the suburbs their parents did. A large number of millennials are seeking a minimalist lifestyle which includes fewer possessions and smaller living spaces, as well as paying attention to their carbon footprint by choosing homes with energy-efficient appliances and fittings. “For them, a home has more to do with being part of a complete community than it did in their parents’ generation,” says Toronto developer Mazyar Mortazavi, owner of Tas DesignBuild, who is now focusing on building mid-rise condo projects outside of the core Toronto area.

Millenials are also more likely to be receiving assistance with their down payment from parents or relatives, but are also making investments wisely. According to the financial industry, millennials are a generation that is more financially savvy, spending more time looking at various housing scenarios and visualizing whether they can afford the rising costs of living once they start a family. Experts recommend that not just millennials, but all prospective homebuyers plan out where they may be in a few years and whether or not they’ll still be able to afford the scenario they choose.

BY JULIE ACHTERMEIER

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FIVE THINGS NOT COVERED ON YOUR HOME INSURANCE POLICY

As a homeowner, it’s important to understand what may not be covered under your Home Insurance Policy. Many people assume they are covered for situations, when in fact, they are not. Also, let’s face it, how many of us read our insurance policy?

For most Home Insurance Policies in Canada, here is a synopsis of what is likely not covered. To be sure, please check your policy or call your Insurance Broker.

EARTHQUAKE / FLOOD

Earthquakes are considered a catastrophic event and are excluded from your policy along with earth movement, which includes earth shifting and sinkholes. While these occurrences are not typical to Canada, some companies do offer earthquake coverage for an additional premium, and the deductible is typically quite high.

Flood or overland water is excluded from your policy. However, most companies do offer coverage depending on where you live. If you live close to a lake, river or floodplain, it will be more difficult to qualify for this coverage. If you do purchase flood coverage, it still does not include any coverage for groundwater that seeps through your basement floor or walls.

FREEZING OF INDOOR PLUMBING

If your plumbing freezes as a result of you being away and you did not have someone checking your home every four days, most policies would not cover the cost of repairs. Most homeowners are not aware that being on vacation or otherwise away from their home during the winter months requires that someone visit your home to check your furnace and ensure water pipes are not frozen. If you are away for less than four days, the exclusion does not apply.

DAMAGE CAUSED BY BIRDS, INSECTS OR PESTS

Generally, damage caused by “pests” is not covered by a standard home insurance policy. The removal of any of these animals is also not covered. Since infestations and the resulting damage are usually considered matters of home maintenance, the responsibility falls on the homeowner to pay for repairs or pest control measures.

A VACANT HOME

If you leave your home for 30 days with no intention to return to it (for example, you bought a new house and put your old one up for sale), there is no coverage after 30 days. Most insurance companies will offer limited coverage; however, you must notify your insurance provider before leaving it vacant. Insurance companies view vacant homes as ideal targets for arsonists, vandals and thieves as no one is there to check on the house.

MOLD

If you suddenly find a mold problem in your home, forget calling your insurance company. The development of mold means, according to your insurance company, that you were not maintaining your home correctly. You will have to pay for any repairs yourself, regardless of how the mold developed.

BY JULIE ACHTERMEIER

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TAKING THE GUESS WORK OUT OF CHOOSING HARDWOOD FLOORS

Choosing a flooring solution for your home can seem overwhelming with the many options currently on the market. Consider the type of wear your floors endure – whether you have kids, pets or a busy lifestyle will make a difference in what kind of flooring you should choose.

Determining whether to go with solid wood or engineered wood depends a great deal on your budget and the level of upkeep you are willing to invest in.

Solid Hardwood is typically 1.9cm thick (3/4”) and often favoured for being “traditional” wood flooring. We think of solid hardwood as being easier to sand and refinish with many different types of woods and grains available. The most common wood used in new homes in Canada is Northern Red Oak as it has a natural colour variation with more open grain patterns. It has a medium “hardness” rating and is suitable for most families. Hard Maple is also very popular in Canada with a slightly higher hardness rating than Northern Red Oak. It has a cleaner look with a smooth finish and much less grain variation than other woods. Hickory is ideal for busy families with a lot of floor traffic. It is a much harder wood and has a less grainy appearance. It can easily be stained any shade because of its natural white, creamy colour. White Ash is the most popular of the Ash tree species because it grows quickly, adapts to almost any conditions and is low maintenance. While it is not as hard as oak, it is more stable, and the grain in Ash is similar in that it hides natural imperfections well.

Distressed woods are also very popular, especially wire-brushed and Hickory, which is an excellent choice for their look and durability. For active families with pets and high traffic, a wire-brushed finish gives the wood boards texture while effectively hiding scratches. Pre-finished floors are usually a better option because they are stained and sealed by the manufacturer before installation.

While there are many other types of solid hardwood options available on the market, there is one thing they all have in common – they are more susceptible to changes in humidity. Solid hardwood responds to moisture as it would in nature – if the air is hot and humid, the floor will take on moisture causing it to swell. When the air dries out, so will the wood, causing it to gap. If you choose to go with traditional solid hardwood, you will need to maintain a consistent level of humidity in your home and maintain your floors on a regular basis. Ask your wood dealer which products to use for cleaning to keep your floors in excellent condition.

Engineered Hardwood is made of layers of wood which are bonded together with adhesives under intense heat and pressure. This process ensures the floors are not as affected by humidity fluctuations typical of the Canadian climate.  A common misconception is that engineered hardwood cannot be sanded and refinished, but this is not true. Many engineered floors can be refinished at least once, and more often if you purchase a higher end variant. If you prefer wider wood boards, choose engineered hardwood as it is more stable than solid wood. Most experts advise not going with wider than 11.43cm (4 ¼ inches) in a solid hardwood as it will be more prone to cupping and gapping.

Unlike solid hardwood, an engineered floor requires little maintenance and is much less affected by temperature and moisture changes, which in turn makes it more resistant to warping and cupping.

Irrespective of which option you choose, your wood floors are meant to last for many years and are a considerable investment to make in your home. Before investing in any wood flooring, consult with experts in the industry and do
your research.

BY JULIE ACHTERMEIER

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