Common Do-It-Yourself Mistakes
Completing small renovation projects around your home can be a great way to show off your skills and save money. However, not everyone has the knowledge to undertake such projects, and here are some very common mistakes to avoid:
“What permit? Oops.”
Permits exist to ensure things are done properly. Permits also keep your insurance company updated with any necessary information to keep you covered. Contact your local building department to see whether you need one or not before you take on a new renovation. If you are going to renovate and the finished job is of questionable quality it can hurt your home’s value rather than add to it, and the delays and costs that will later result, including having to have the renovation professionally redone, aren’t worth the original do-it-yourself savings.
“Of course I know what I’m doing!”
Books can impart a lot of do-it-yourself knowledge, but that might not be enough depending on how much you’re starting out with. Watching videos or contractors on the job will let you absorb some more information and techniques to apply to your project. Start small before diving in, or ask any friends who are professional contractors to lend a hand. Many home improvement stores offer workshops that are both fun and educational. If you still don’t feel confident enough, there’s no shame in hiring someone else. Working beyond your scope leads to many of the construction accidents seen in Canadian hospitals each year.
“Old Rusty is the perfect tool for this job.”
That hammer or power drill you’ve had for years or that spectacular saw you still can’t believe you scored at the dollar store might not be the best tool for the job. Renovations are rarely one tool fits all, so buying quality tools that will last and doing the research to make sure you have all the necessary equipment will lead to less headaches down the renovation road. The same goes for building materials – saving a few dollars here and there is what so-it-yourself projects are all about, but don’t sacrifice quality if it means using thinner or weaker materials that you’ll have to replace sooner. Haggling can be your best friend when shopping for supplies.
“What could go wrong?”
Ensure you have the proper safety gear for any project. Proper clothing, tools, eye protection or masks if necessary. You wouldn’t want loose clothing to get caught in the table saw or have an errant metal shaving land square in your eye. Research the area thoroughly that you’re working in. Is there a possibility of any venomous spiders or snakes? Rattlesnakes aren’t solely residents of the dusty desert, and renovating that old shed in the backyard might lead to an encounter. Ontario’s native rattlesnake species, the Massassauga rattler, is found in the southernmost areas of Ontario and its range includes further northern areas. The Massassauga is a protected species and cannot be whacked over the head with a shovel (but you wouldn’t think of ever doing that, right? They’re endangered and the fines for harming an endangered species in Canada could buy you a decent new shed anyway). Basements are havens for spiders, and the black widow spider is found in southern Canada. Bites from black widows are extremely painful and can be fatal to children, the elderly or those with compromised immune systems. Research any critters you might encounter and have some phone numbers handy for exterminators or pest removal services.
Sometimes admitting defeat can be your best option when it comes to tricky projects that involve plumbing or wiring. Some jobs were just meant for a professional, and attempting these by yourself might hurt you, your family, or your wallet. Enter do-it-yourself renovations with confidence, but stay practical. It will pay off in the end.
Julian Merry is a Broker with Royal LePage/Johnston & Daniel Division. Julian is a regular contributor to the Muddy York Toronto Real Estate Blog. Julian’s website is located at www.julianmerry.com.
moving information. Consumer confidence ticked slightly higher, home starts increased slightly and the Case Schiller Index showed that the housing market is coming back, but still a long ways down from where it was a year ago. The Fed Open Market Committee released their minutes from last month’s meeting, and it amplified what they said earlier in their news release. The upshot is that in order for the economy to continue to recover, they need to keep rates low for an extended period of time. In the minutes they acknowledged that low rates could continue to hurt the dollar on world markets, and there is a risk of inflation, but these risks are low and the economy is still fragile. So expect that short term interest rates will stay where they are for at least a good part of next year. The mortgage bond markets liked this news, and the markets rallied on Wednesday sending mortgage rates a notch lower.
low rate for the long term, lower your payment and take some pressure off your budget. The rates now are the lowest I’ve ever seen and I expect when we look back at this a few years from now, they will seem like the bargain of a lifetime. But while rates are low, if you have compared rates you see in the newspaper or on-line, you might think rates are better than they really are. You might also see that some lenders are showing much lower rates than others, when the reality is that we all get our funds from the same sources, and the true rate shouldn’t vary from one lender to the next by more than an 1/8 or 1/4 of a percent. So what gives? Why are some lenders able to show such low, low rates? Are they really able to do something that other mortgage lenders aren’t able to do?
The second step is, how much it will cost to refinance?
the economy was still in free fall. Back then, from the beginning of the year until the start of the Summer, mortgage rates were in a flat, even pattern and the low rates were as stable as I have ever seen. By nature, mortgage rates are volatile. Mortgage rates aren’t set, but determined in a market (mortgage backed securities, a type of bond), just like with stocks or other financial instruments. Mortgage bonds bounce around from day to day based on economic reports and changes in trader sentiment. Mortgage bonds are long term investments, so the traders are looking for signs of inflation, which is the enemy of any fixed rate investment. Back in the Spring the big worry was deflation, not inflation, and the Fed had committed to a huge purchase of 1.25 trillion dollars in mortgage backed securities in order to keep mortgage interest rates low. The Fed purchases did the trick, and rates stayed in the low stable range until worries about the build up in public debt shook the market up at the end of May. We are in a very different situation now. The Fed is nearly finished with its buy back program, and with all the debt the government has taken on to keep the economy moving, inflation fears are high (even though there is no sign of inflation now).
Chicagoans and Illinois residents in general. Wisconsin has the lakes and open areas that we don’t have around Chicago, and it is a great place for fishing, boating, hunting and snowmobiling, not to mention just hanging out and enjoying nature. And if you are from Wisconsin, that’s not always a good thing. If you live in Wisconsin, it’s not just your playground, it’s where you set down your roots, work and raise your family. And then there’s the rivalry between the Bears and the Packers (though rivalry might not be the right word anymore, since it’s been awful lop sided in the Packers favor over recent years). The point is that Wisconsin and Illinois are linked together, and its sometimes a love/hate relationship. More love on our part.
it is still up near the highs for the year. Oil and gold have had major run ups, and the dollar keeps getting smacked around on the currency market. The government holds new auctions for debt nearly every week and the money supply continues to grow. The economy is still soft, but we are long past the panic and slowly moving forward. At the same time, the Fed is nearing the end of its commitment to buy mortgage backed securities to keep rates low (the Fed has purchased over $1 trillion out of $1.25 trillion promised). All these are usually signs that inflation is heating up, and that mortgage rates should be rising. But rates stayed flat this week, near the lows of the year. What gives?
With Thanksgiving on Thursday, this is a short week for the markets. Most of the activity will be on Monday and Tuesday before traders leave early on Wednesday for the extra long week. Existing home sales, the GDP, and consumer confidence measures will all be released this week, as well as several new auctions of government debt. With the shortened week expect more volatility in mortgage rates. Let me know if I can help you with refinancing your current mortgage, or helping you with your loan when you buy a new home. The 
