While browsing the internet the other day seeking inspiration for this article, I decided to see how the web defined renovation with the following results:

Definition: “Renovat”e

1. To restore to an earlier condition
2. To impart new vigor to; revive

Definition: “Renovation”

1. Any renovations made to a property are treated as capital improvements and are therefore added to the market value of a property.

Whenever a client asks me to review their renovation plans before actually starting them, I am extremely grateful. The statement expressed in the second definition above has to be viewed as a goal but not necessarily a given. I would hope my client would also have consulted a design expert and a building contractor in deciding on the goals and best approach to the renovation. In other words the more professional input you have at the front end, the greater the probability of financial success.

The architect or designer can make the best use of existing structure and will visualize the outcome with you to make sure it meets your needs. The building contractor brings the cost overviews and various ways to economically approach the task. They will also include sub trades to offer quotes. It is important to remember that not all homes are renovation candidates. If the home has no redeeming features it is best to start fresh.

If you are intending to sell after renovations, the real estate professional can offer volumes of experience on what will and will not sell. The advice can encompass everything from comment on floor plans, current hot items (such as media rooms or wine cellars), and the type of target market you would attract.

Should the client initially approach me and ask me to help decide which areas are going to bring the best return on their renovating budget, I usually make the following suggestions:/p>

In my opinion, the number one area to address is the front door and entry.

This is the first introduction of the home to the buyer and it is from this point that they begin to formulate their subconscious balance sheet of pros and cons. It is best to have them appreciate the home from the moment they enter. The return on landscaping is also greatest at the entry level.

The next two equally strong areas for return on investment would be the improvement of the kitchens and the baths. As our homes today have become even more of a retreat from the hectic pace of the world, the kitchen and baths have become lifestyle statements. Efficiency of design and efficiency of energy have been growing as priorities for today’s buyers. Clients today are aware of energy efficient appliances and water efficient bathroom fixtures. The at-home spa is definitely here to stay.

Flooring materials and paint can make or break a sale, as strange as that seems. If a flooring choice is not suitable to the client, they fear the cost of replacement. They look for durable floor coverings as well. Ten years ago, buyers would not have been concerned with the fact that Bamboo is a “green” flooring choice.

If the paint color is too bold or dramatic, they do not always think “Oh well it is just paint”. Unless they are can visualize a new look, the wrong color creates a feeling of acceptance or rejection for many buyers the instant they enter the home. The interior designer will assist you with those choices.

As in all things in life, Planning is everything! A well planned renovation should flow smoothly and not leave a family in stress and tension for months. One client recently said that after a very costly, over budget renovation that she just should have taken the three quotes from trades and added them all together! Building costs have been rising over these past five years at an unbelievable rate. You have to think of a budget cushion going in, plus a sense of patience and a plan for delays.

I do believe however, there is no greater sense of satisfaction than a successful renovation. Ideally you keep the best and enhance the rest!

If you wish a comprehensive collection of home renovation information, visit www.myhomereno.com. This informative site is sponsored by CHBA, CMHC, Natural Resources Canada Office of Energy Efficiency and The Government of Canada Climate Change.

By Michael Barker-Fyfe
http://privateclient.customhouse.com/

When buying property in Canada, you must pay for it with Canadian dollars. As a foreign buyer, this means that you will not only purchase property but also the Canadian funds needed to pay for the property. That seems simple enough, but international buyers should be aware of some common pitfalls.

First, banks do not offer the best exchange rates available and the difference can be substantial. Let’s say you need to buy $250,000 Canadian. If your bank takes one percent more than another provider you are paying a hidden fee of over $2000 above what you should. What’s more, banks are not able to manage the international payment process.

This brings us to the next important point. Payment deadlines are firm with Canadian real estate and delays can result in a penalty or even a collapsed deal. Funds must arrive on time for both the deposit (to the real estate company) and closing (to the lawyer or notary of your choice). Cheques (or checks) are not an acceptable form of payment. The best payment method is either a Canadian dollar wire transfer or certified cheque/bank draft from a Canadian bank.

Stewart Gardener (names of clients have been changed for privacy) sold his flat in London and used Custom House to transfer funds for a condominium purchase in Whistler, British Columbia. Stewart was pleased with the exchange rate through Custom House and the speed in which the funds arrived for the deposit and closing payments. He has since recommended Custom House to a number of his friends and associates.

Vanessa Mitchell lives in Seattle, Washington. She invests in the Vancouver condo market and has used Custom House many times. She likes using currency bids to achieve the best possible rate on Canadian funds. She also uses the online payment option offered by Custom House to make ongoing maintenance payments on her properties. Vanessa used to use her bank in the US to wire funds to Canada but was frustrated by the time it took for funds to arrive in Vancouver after clearing through New York and Toronto. In fact, she once had a deal collapse because of a late payment and she lost her deposit. It was an expensive lesson and one she won’t forget. That’s when she first heard about Custom House and our specialized service for international payments.

Custom House specializes in international payments, offering payment solutions tailored to the real estate market in Canada. Here’s how Custom House differs from a bank:

1. Currency values change by the minute – Custom House offers real-time exchange rates at competitive prices. This means you save money buying through Custom House.
2. When using a foreign bank to move funds to Canada, your money is moving from one institution to another and you have no control over the speed of the transaction. This can result in long delays, which can put the property purchase at risk and cause a great deal of unnecessary stress.
3. When dealing with Custom House, funds stay within the same institution. You settle on an exchange rate and then pay Custom House in your domestic currency. Canadian funds then move quickly to the trust account in Canada.
4. You do not need a Canadian bank account to deal with Custom House.
5. If the payment is due some time in the future, you have the option of bidding on an exchange rate or locking in a rate ahead of time. If you choose to lock in a rate ahead of time (“buy forward”), you are protected from the downside (your currency depreciating) but you are not able to participate in any upside. As a result, clients typically either buy funds as they need them at what are called “spot rates” (or the exchange rate at the moment) or place bids for a better exchange rate. Bids can last up to 30 days and may be changed or cancelled at anytime provided they have not already filled.

In order to arrange for international payments through Custom House, you must submit an application. Once your account is active, you may use Custom House as often or little as you require. There is no minimum transaction amount for using Custom House’s online payment service. For telephone service, the minimum transaction is $10,000 Canadian.
Contact Custom House at 604.482.6000 (toll free in the USA and Canada: .800.350.6001 ) or at privateclient@customhouse.com

Custom House is the largest non-bank foreign exchange company in North America. Custom House has achieved the presitigious Platinum status with Canada’s 50 Best Managed Companies and is the official foreign exchange provider of the PGA TOUR .

About the author:
Michael Barker-Fyfe manages the Private Client Division of Custom House. He has been quoted in the Seattle Times, San Francisco Chronicle and L.A. Times and published a feature article on foreign exchange in Canadian Treasurer Magazine. Mr. Barker-Fyfe was the foreign exchange expert selected for the book Closing Bigger: The Field Guide to Closing Bigger Deals, published in October 2005. He regularly presents to groups of lawyer, investment advisors, mortgage brokers, real estate agents and the general public.

Contact Michael at mbarker-fyfe@customhouse.com