New Homes
New Homes
Not for the faint of heart
The old saying goes: It takes money to make money. And nowhere does that apply more than investing in undeveloped real estate.Whether it's to purchase an empty lot to build just one home to sell or to buy a large tract of land, intending to sell when developers come calling, an investor needs cash, experts say.
"It's not for the faint-hearted," says real estate consultant Wayne Penner, an agent for Royal LePage Dynamic.
"It can be a lot of fun. It can be rewarding, but you have to have a strong stomach."
A novice real estate investor has three different options when considering investing in undeveloped land: Large-scale development, small-scale development and speculation -- sitting on the land and selling when it goes up in price.
Buying a large tract of land to develop commercial real estate, several homes or a condominium project is amongst the most costly, requiring experience, and often presents the most headaches.
"The problem is with all the red tape and things that go with trying to develop it within the city," Penner says.
"You have to have it rezoned. You're going to have to have an extensive plan. You're going to have public hearings. You're going to be fighting with residents in the area who may not want the project there because all they've seen is grass, meadow and trees."
On average, a developer will spend more than a year of planning, negotiating and ensuring all the zoning and permits are in place before even a shovel touches the ground.
"On top of that, what are the construction costs, and what are servicing costs? This is a full-time job," says Penner, who has 35 years of experience in the Winnipeg market, and is currently working with one client who is a novice developer.
"If you bought the land, of course, time is ticking and interest rates are OK, but the bank needs to be fed."
For most average, middle-class Winnipeggers, developing land on a large scale is simply beyond their financial means, says Gerry Campbell, executive vice-president of sales and service with the Assiniboine Credit Union.
Often millions of dollars are involved even for the smallest condominium project.
"That's risky. It takes a fair bit of resources," he says, adding he does not see many clients engaging in this sort of real estate venture.
"They have to have a lot of financial resources behind them if they're looking for a larger tract of land."
On top of that, a would-be developer may be on the hook for infrastructure.
"There has to be the sewer, the water, the road, the hydro. That's a big capital investment. So, do they have wherewithal behind them to take that sort of thing on?"
Mortgage broker for Invis Rosa Bovino says most lenders would want anything from 35 to 50 per as a down payment from the buyer in order to finance the venture.
"We have several clients looking to purchase land, some to be subdivided and sold," she says.
"A lot of people don't have they means of coming up with that kind of money."
For the novice, Campbell suggests starting out small.
"Let's say I wanted to buy a vacant lot on the street that I already live on, and just want to put a house on it and sell it to someone else, what we would need is 35 per cent cash into it," he said, adding one way to fund the down payment would be to use the equity built up in your home.
Though it can work, and become the first step onto bigger and better projects, it also has real risks. It can take time to build the home, which means during that period, the developer must carry the cost of both the mortgage's and line of credit's interest payments. Property taxes are another expense, and construction costs in a tight market for both supplies and labour are perhaps and even bigger concern.
The builder must also find a buyer. Although the market is hot now, it may not be a year from now.
The stakes are high: The builder's own home is on the line, Campbell says about using home equity to back the project.
"We would likely put what we call a caveat against the house -- kind of a lien against it -- so that we would be covered if they were unable to repay," he says.
"If they couldn't pay, we could force them to sell the house to recover our funds that way."
As risky as that may seem, it pales in comparison to real estate speculation.
"Speculation is the most volatile aspect of real estate investment," says Sandy Shindleman, president of the commercial real estate company, Shindico.
"There's no income stream and, typically, to bring the property to an income stream potential, either you have to make a substantial additional investment, or you need to sell it."
Shindleman, whose company does provide consultation services to people looking to purchase and develop land for commercial use, says many people have bought land in the past 60 years on the edge of Winnipeg, hoping to sell it when developers came calling but, instead, found little success.
A buyer must also know that speculation takes time and patience. More often than not, it involves holding on to the land for 10 to 20 years.
"You have to be able to understand what is in the immediate path of development, and what political issues at the municipal or provincial level might impede the development of the property."
It also requires a good grasp of regional economics. The job market ultimately will drive development. The more jobs available in a community, the greater the need for housing and services associated with the growth of new communities.
"It's not the first thing they should try," he says, adding speculation does have one advantage over other forms of real estate investment.
"It's certainly easy to manage if there's no rent and no tenants. It's simply a matter of cutting the grass and making sure you have liability insurance."
Above all, as with all forms of real estate investment, the novice should seek advice. Talk to a banker, mortgage broker, the city's planning and development department and real estate consultant before spending any money at all.
"You have to have your eyes open when you go in because there's always that chance that things could change," Campbell says.
"Can you accept the consequences or ride it out if the market has a change of pace?"
Quick tips
for investing
in bare land
Start out small: Buying one lot for single-family use is often all that the average investor can afford and should be willing to risk.
Experience needed: If you don't have it yourself, seek it out before spending any money. Real estate agents, your bank or credit union, the City of Winnipeg, mortgage lenders and even developers are valuable sources of information.
Greater profits mean higher risks: Investing in undeveloped property is the riskiest of all real estate ventures. It's also costly. Ensure beforehand you are aware of what you stand to lose if it doesn't work out as planned. The bigger the investment means the more you stand to make, but you also stand to lose more -- if not everything.
New Homes
Sit back and relax
To many seniors, retirement means retiring from work, not life.More than ever, today's retirees lead an active lifestyle. However, with retirement also comes the desire to come home to a place that doesn't require endless hours of upkeep -- yet offers space and style. Enter Sturgeon Creek II Retirement Residence, 707 Setter St., in St. James (across from Grace Hospital).
"The concept here is that we will present you with the finest amenities and services to enrich your retirement years," executive director Terri Hammerback said.
"There are 153 one- and two-bedroom suites here, and we provide all your meals, do weekly housekeeping, your laundry and offer a wide variety of activities. The suites are rentals; rent for one-bedroom suites ranges from $1,975 to $2,460, while rent for two bedrooms ranges from $2,975 to $3,200 depending on the plan you choose."
Although compact, both the one- and two-bedroom suites are well laid out, making the best possible use of space available. The two-bedroom display suite viewed measured in at 640-square-feet, yet felt much larger due its floor plan, high ceilings (over nine feet) and large windows.
A large, bright sitting area with fridge and sink, and two large bedrooms down the hallway -- each equipped with its own bathroom -- mean there is ample space, privacy and access.
"This suite represents one of seven different styles," Hammerback said. "They all have a fridge, sink and moderate amount of cupboard space -- many residents like to have breakfast in their suite. In most cases, we don't expect people will cook as all meals and snacks are included. The bedrooms are a good size, and have wheelchair-accessible bathrooms with features like low bathtubs, walk-in showers with handshowers and grab bars. There's also plenty of storage space with two double closets and a broom closet in two-bedroom units."
Single seniors can also rest easy knowing that the one-bedroom suites offer the room and creature comforts they need -- all at reasonable, all-inclusive price.
"We're proud of the way the suites have been designed. This one-bedroom unit (a 570-square-foot display model) is a very neat design. It's angular, with a huge storage closet at front, big sitting area with fridge, sink and cupboards, and a large bedroom that's adjacent to a large, user-friendly ensuite," she said.
Staff is on call 24 hours a day to ensure comfort and safety, she added.
"From what we've been told by residents, it's all a single person needs in terms of size and amenities. Smaller one-bedroom suites are also available."
While the suites at Sturgeon Creek II are eminently livable, the real focus at the facility is on what residents are going to do outside their home. Consequently, the complex has been finished with oak trim, eye-pleasing pastel colours and many amenities.
"The focus here is one providing an environment that encourages both relaxation and activity," Hammerback said.
"We have a full-time activity co-ordinator on staff, and there are amenities such as recreation and fitness rooms, a games and billiards room, hobby and craft room, movie theatre and shuttle bus for outings."
The residence features elements aimed at kicking back in style.
"There's lots -- a tranquil library, Internet lounge, main-floor bistro and coffee lounge with fireplace, spa, and beauty salon/barber shop. Services such as weekly linen and towel service, dry cleaning pick-up and delivery and laundry facilities on each floor really make for retirement living with a touch of luxury. When you eat lunch and dinner in the elegant dining room (which offers a separate dining area for parties or family functions), it feels like you're treating yourself," she said.
"And that's how it should be. People have worked hard, so they should enjoy themselves," she added.
With an excellent location, spacious and secure suites, and a host of amenities, active seniors looking for a new place to call home should consider taking a tour of Sturgeon Park II Retirement Residence.
lewys@mts.net
New Homes
Fits like a glove
We've all driven by them at one time or another -- a new home that catches your attention because it captures the essence of its surroundings perfectly.That's exactly the case with 6 Prairie Oaks Cove, a 2,466-square-foot Irwin Homes bungalow show home in The Oaks (west on Portage Avenue, turn south on Camp Manitou Road). A combination of superb location, thoughtful design and carefully selected finishing materials -- and colours -- has created a home with oodles of wow factor.
It's also a design that does a masterful job of inviting the outdoors indoors in a tangible way -- a very good thing, considering the home sits on the banks of the Assiniboine River.
"That's what happens when you put a bank of five floor-to-ceiling windows in the great room," says Irwin Homes' marketing representative, Sutton Realty's Bill McGarry. "Then, there's a little jog between the sunroom for separation. Then, there's another group of huge windows that surrounds the sunroom's sitting area. All the windows and sunroom really take full advantage of a southern exposure.
"Sunlight floods into the kitchen and great room all day long; it's just a great place to hang out -- you can just sit back and enjoy the sunshine and great river view."
As tremendous as the (virtually) panoramic view of the Assiniboine River is, the interior finish further enhances the enjoyment that comes with being able to survey such a picturesque setting. Dark-stained alder hardwoods, cherry cabinetry and beige granite countertops combine to create a warmth that's at once rustic and modern; meanwhile, aspen details around the windows and a two-tone light chocolate/white tray ceiling make the kitchen/sunroom/great room an area that just begs to be inhabited.
"The owners didn't want the area closed in, which is why they went with the large windows, high ceilings and a sunroom -- the tiered ceiling design allows for the huge windows," McGarry explains. "The colour choices are also excellent -- they aren't too bright. If they were much brighter, you'd need to put sunglasses on. Everyone who's been in the home says the same thing -- it's so comfortable inside. That's one of the biggest compliments a builder can get. It's due to the way the design and materials come together so well."
Ah, the design. As easy as it is to build a luxuriously appointed home on a stunning river lot, it's another thing to conceive a design the fits the setting so seamlessly. At the same time, the home has to be livable, too.
"This home is as efficient as it is artistic," he says. "The kitchen is U-shaped to make it highly efficient. It's also partially walled-off for privacy -- when you walk in the door, you don't want to see everything," he says. "Features like a cooktop enclosed in charcoal-stained maple not only offer contrast and artistic flair, but pullout cupboards add efficiency. A dinette area for four takes full advantage of the river view, and a maple entertainment unit in the great room, with (beige) cultured stone fireplace, add practicality and beauty."
In fact, the richness of the interior makes you feel like you're part of Lifestyles of the Rich and Famous, Manitoba version; even the heat-register covers match the baseboards to add to the warm, luxurious ambience. Such attention to detail is hard to come by, but very welcome.
Another practical element of Irwin's design is the fact that the master bedroom is separate from the other two bedrooms. Thanks to this feature -- and an abundance of square footage -- it has been endowed with a huge picture window that provides a great portal through which to view the meandering Assiniboine.
There's actually so much room to burn in this quadrant of the home that the massive bedroom -- which offers plenty of room to create -- is united with the ensuite by a small foyer with its own walk-in closet and recessed area, which in this case has been outfitted with a table and mirror.
Finally, you get to the area that you've been waiting to see -- the ensuite. No disappointments here: warm and elegant with a (heated) beige ceramic floor, dark brown paint, a corner jetted tub (with big window overhead), the ensuite takes the home's already significant artistic flair up another notch. Evidence of that can be seen in the walk-in shower, where the brown ceramic tile entrance is given a dash of European flavour by a smart granite inlay.
"It's absolutely spectacular," says McGarry of the ensuite. "The colours, materials and amenities make it a spot where you want to go and soak away all your worries -- just as it should."
As if the unending river views, opulent ensuite and well-appointed main floor weren't enough, there's then a fully developed lower level to take in -- a walk-out lower level, no less.
"I've been in this business for a number of years and it's the best one I've seen. For starters, the rear wall is virtually a bank of floor-to-ceiling glass to maximize the river view," he says. "As great as that is, the layout of the lower level is just superb -- there's room for a pool table, wet bar, sitting room and television area with cultured stone gas fireplace. And that barely scratches the surface of what's downstairs."
McGarry isn't kidding; roughly the same square footage as the main level, the lower level also houses a powder room, separate media room with 70-plus-inch projection screen -- plus two huge bedrooms with four-piece bathroom in between.
"What can I say -- it's basically another house downstairs, plus there's all kinds of storage space. When it comes to lower-level designs, it doesn't get any better than this. In fact, the reaction to the overall design of the home has been tremendous. If we'd had four more lots, we would have built four more homes like this. It isn't often you see a home that puts so many great features together in such a beautiful, functional package. When you put together a home in such a great location with such an exciting interior and good flow, it's a design that people just love."
lewys@mts.net
New Homes
Spring into life
Spring is all about a fresh start. After a long winter, paint manufacturers and fashion designers are coming out with their new spring lines. This year, vivid colours and fresh designs are the order of the day.You can't help but smile when you see shop windows displaying bright yellow rain jackets and pink rubber boots, or flower shops overflowing with colourful tulips and daffodils. After a dark, colourless season, spring is finally on its way and it's loaded with interesting choices for home decor.
The trend is still on a 1970s retro kick, especially in children and preteen living areas. This fun, colourful flooring from Tarkett Residential (www.tarkett.com) is a new product called FiberFloor, which comes in many styles and colours. This particular pattern is cheery and fun, retro and fresh. Pink is hot this season as are retro accessories such as the hanging lamp shade, fun fur toss cushions and the beanbag chair/ottoman pictured here.
While it might seem daring to choose such a strong pattern on the floor, this particular room can be toned down some as the years progress. For the young girl, these bright colours might be fun, but as she grows into her preteens the decor might be too childish. By painting the walls in one of the less vivid colours from the flooring, such as the soft taupe for instance, and by toning down the accent colours and changing the accessories, you'd still have a fun room that is more grown up as your child grows. This particular floor pattern could take you from nursery to the mid-teen years of your little girl so don't be afraid to be daring.
Round and round we go
Circles and polka dots seem to be hot this season, in clothing and in home decor. It's partly due to the retro trend but I also think that polka dots are just plain fun. So, just as you might add a fun polka dot scarf to a boring pantsuit, so too should you add a little fun to your decor by throwing in the odd surprise such as a funky retro toss cushion or two. Just because we're older doesn't mean we should throw away our sense of fun. If you need an excuse, then use the kid's room as your youthful, decorating playground! You don't have to go polka dot crazy to make it work. Just a splash here and there, on a lampshade, toss cushion or as trim on kitchen curtains might do the trick.
Funky florals
Just like in the 1970s, funky floral patterns are still popular with the younger crowd. They are also growing in favour to grown ups. Very colourful wall coverings in retro floral designs are making their way into kitchens and bathrooms across the country. Daisy-shaped toss cushions and daisy motifs in general are a fun way to be part of the trend without a huge investment. Add these floral designs in your kitchen table linens, curtains and throw rugs as a fun way to brighten up your space this spring. The trick with the new floral trend is that bigger is better. No tiny feminine floral prints these days. It's all about large splashes of colour and pattern.
Wall colour
Paint colours are fresh and new this season. Celery green with violet accents is a hot look that is airy and bright. Turquoise is making a comeback in accent colours and works well with earthy brown tones. Green and brown have always been around but the new hues are enchanting and fresh. Colours reminiscent of bib lettuce, moss, river stones and sand are a fresh take on the standards. Citrus lemon and lime tones add punches of vibrancy especially when accented with hues of violet and red.
Asian influences are making their way back with rich spice tones, vibrant oranges and jade greens. When mixed with the new environmentally inspired neutrals mentioned above these rich tones really pop.
Old Hollywood
While not for everyone, the old Hollywood style from the 1930s and 1940s is still a hot trend. Black and white are the mainstay of this look but it's punched up with metallic finishes, mirrored surfaces and silver and gold highlights. The 'new' old Hollywood encompasses rich colours such as deep purple, navy and inky greys. For a dreamy romantic bedroom, this look might just fit the bill. It's all about luxury and decadence and being a little over the top. Who doesn't want a little glamour in their lives?
The biggest thing to do this year is to make a colour change. Out with the forest or hunter green and in with celery green. Out with beige and in with deep purple. A new colour will change your entire outlook and the rest will flow accordingly. Once you have a new outlook you'll look at the other room elements in a new light. It's like buying a new spring wardrobe. Treat yourself.
coliver@3web.net
New Homes
Art galleries intimidating?
OTTAWA -- Glenn McInnes made his first foray into the art world because he thought that's what grownups did. He and his wife Barb, now married for 44 years, had just exchanged their vows and moved into an apartment. "We had to put something on the wall, didn't we?" says McInnes. "That's what we thought the rules were."So the newlyweds went to a gallery downtown, bought a landscape and hung it up. A few weeks later, they argued about it. "Barb thought it was a river and I thought it was a road. Then we realized neither of us really liked it. So we took it back."
Their first foray into the art world was short and inauspicious, but their second buying experience was totally different. They went to a local art gallery (which no longer exists) and were encouraged by the manger/artist to look around and take their time.
"We chose a very large abstract piece," McInnes says. Today, it hangs in Barb's office. He can't remember the price -- was it $150 or $450? Either way, it was one month's salary at IBM, where McInnes worked at the time.
The McInneses repeated the buying process, to the point where they had paintings in their basement, their attic, even under their bed. Eventually, they decided to share with the public, establishing the Glenn and Barbara McInnes Family Collection at Carleton University (they're both Carleton grads). Over nine years, they donated more than 200 works. Since 2004, they've also sent four pieces to the Beaverbrook Gallery in Fredericton, NB. But that doesn't mean the McInneses' walls at home are bare.
They're plastered with all kinds of modern wonder pieces, including an Andy Warhol print of Elizabeth Taylor that McInnes bought years ago at a show in Vancouver for $15. It's worth, well, rather more now.
McInnes and his wife ended up with a vast art collection without really meaning to because they had been bitten by the bug, he says. And yet, many people suffer the same bite, but never buy a single piece of original art.
Is it because galleries are intimidating? Is it because they think original art is prohibitively expensive? Or is it because it never occurs to them to do it?
It's some or all of the above.
Dale Smith, owner of Dale Smith Gallery in Ottawa, was recently at HomeSense, where she spotted a young man buying three decorations for his wall. They were all from the bargain bin, but for the price of the three, Smith figures the man could have bought an original piece of art from her.
"I thought to myself, 'I wonder if he realizes he could buy something original.' Often it doesn't occur to people because they think original art costs too much," she says. "They think it costs thousands of dollars."
Another of Smith's theories? People feel safer buying off-the-rack art.
"I think people are often afraid (an original piece) will say something very revealing about them. They think it's going to say something about themselves that isn't accurate or that they don't want other people to know about them. They feel they're setting themselves up for criticism or judgment.
"It's safer to buy something where they can simply say it was on sale, or that it matched the couch. They don't look at it as much as an expression of their personality."
It doesn't have to be that way. To demystify the art world, we consulted gallery owners, collectors and artists and came up with this primer for the would-be art buyer.
1. DO YOU LOVE ME?
"I think you should buy a piece of art because you love it," says Don Monet, owner of Ottawa's Cube Gallery. "It's a lesson Monet learned several years ago. He'd seen a painting by Group of Seven artist A.J. Casson and "liked it OK," but mostly he thought the price was really low.
"I went into Wallack's (gallery) and asked (owner John Wallack) about it. He asked me if I loved it. When I said no, he said I shouldn't buy it."
2. YOU DON'T HAVE TO BE RICH
Often, an original piece by an emerging artist can cost less than a poster you have to get framed. "You can buy a piece of art without breaking the bank," says Monet.
Robert Koyman of Koyman Galleries agrees. "A lot of people don't know original art can be affordable," he says.
If there is a painting that would break the bank or at least overtax the account, most galleries will let you buy on a payment plan. "If I see that someone really loves a piece of art, I will really do anything I can to see that they get it," says Smith.
3. MAKE ME A MATCH
Monet sees his job as matching people with the right piece. "I really do feel as though I'm a matchmaker."
4. IT'S A GALLERY, NOT A TEMPLE
People are afraid to go into galleries.
"They think it's going to be intimidating, or they think they'll need a body of knowledge about art," says Smith.
"A lot of people are intimidated at the outset because they're not comfortable in the language they think they need," says Brandon McVittie, co-owner of Artguise in downtown Ottawa. "It's not necessary to have an art history background. We try to recognize that most people are buying art for their homes. It should not be a hoity-toity experience."
5. SOUL-BARING ISN'T NECESSARY
"You don't always know why a piece of art speaks to you. Sometimes you think you do, but you can't express it. So what?" says Smith. "The bottom line is that you like it, that it means something to you. That's all that matters.
"You don't always need to know what the artist intended. Once a piece of art goes into the public realm, it becomes about the viewer's relationship with that work of art. Some people like to be aware of their conversation with a piece; they want to explore and understand it. But often, it's just a gut feeling."
6. GALLERY HOP
The guys at Artguise (McVittie and business partner Jason Vaughan) encourage customers to see as much art as they can to help them figure out what they like. "We even tell them to go on the Internet and surf around," McVittie says.
Smith agrees. "I tell people to go to all kinds of galleries -- private galleries, national galleries, galleries on your travels. Then you discover what you like and what you want to purchase."
7. INVESTMENT IRRELEVANT
Buying art you think will increase in value is a gamble. It's not likely those who stopped on the side of the road in Digby, Nova Scotia to buy Maud Lewis folk art paintings -- some of which were done with boat paint -- from the artist herself for $5 in the 1940s realized they'd now be worth upward of $12,000. The experts point out that, for the most part, the increase in value is not likely to be seen in your lifetime anyway.
But it is nice to know that the artist you're buying takes his or her work seriously. Obviously, they must have talent, but the artists who work hard are the ones who succeed.
8. SUPPORT LOCAL ARTISTS
Buying art locally means supporting artists in your community. That doesn't mean you should always buy in the city you live in -- a piece of art from your travels sure beats a decorative spoon or beach towel -- but if it's karma you're looking for, you can probably get a little by supporting the city's artists.
--Canwest News Service
New Homes
Let paint express room's mood
No matter whether you are painting your first room or if you've had years of experience, working with colour seems to be the biggest decorating challenge there is. According to your many requests, it certainly is the topic that garners the most concern and frustration.Well, I can't pick your colours for you, but I do have some time-tested suggestions that should make the job a lot easier. And I promise you that the right colours in your home will have a powerful and positive impact on how you feel every day.
How do I choose a colour?
When I start designing a space, I always work on the mood I want to emulate first, then I fill in all the blanks such as the colour and furnishings. Colour is so powerful that a can of paint will immediately change the mood of a room.
Vintage colours have a touch of black in them -- murky greens and reds, greyish blues, and ocher yellow. They will create a traditional palette that is warm and welcoming. Bright, cheerful colours -- pink, periwinkle, orange, lime green -- will make you smile and are ideal for kids' or family rooms. Pastel, earthy Zen shades are soft and calming, whereas strong, bold colours add a sense of drama. It's all about first deciding on the mood for your room, then working with the colours that will build the ambiance.
How do I handle colour in a room with awkward angles?
Use the angles to create interest. Light changes the way we see colour. Choose a colour that you like and paint the room. You will see many shades of the colour, depending on where the shadows fall; the mood of the room will change in day and night lights. The living room seen here has been painted a medium shade of blue. Although it's just one colour, the corners appear darker, giving the whole space an air of whimsy. The black furnishings bring drama to the space and ground each little section.
What colour should my sofa be?
When you are decorating a room, it's best to make the expensive selections first. A sofa is a major investment. There's no rule about the colour you choose; rather, make your selection according to how you use the room and what pleases you. If you fall in love with a red sofa, then go for it; a vibrant colour will rule the room, but that's fine. Once you have chosen your sofa, then choose the room colours; a good sofa will last through a few paint jobs.
My daughter wants a purple room. Help.
Children have wonderful imaginations and haven't yet been beaten down by what colours are socially acceptable. They choose a colour because they love it. There's a lesson there for all of us. If the colour choice is too heavy or energetic for a bedroom, show your child how you can have one solid accent wall of colour, or a lighter version. You can always repaint. Splurge on a few accessories such as a purple lamp or small area carpet with a bold design and invite your child to help you.
Debbie Travis' House to Home column is produced by Debbie Travis and Barbara Dingle. Please e-mail your questions to house2home@debbietravis.com
