Suddenly a lot more people know what Airbnb is.

The company has been in the news of late as a Calgary couple rented out their home using the online service for some extra cash, only to return to find it had been completely trashed in what police called a “drug-induced orgy.” Damages to the King family’s northwest property are now estimated at $150,000.

Airbnb offers a “$1,000,000 Host Guarantee”, reimbursing up to one million dollars in repair bills to homeowners whose properties have been damaged by Airbnb customers, and the company has stated they will pay to have these Calgarian victims made whole again. But nothing can take away the memories of a family home decimated and disrespected so fully.

So, is it worth it to rent out your home on Airbnb? Like most means of earning extra income, there are risks and rewards. Apartments in Calgary start at around $65 per night, more depending on location and amenities (some homes can fetch $800 per night), and there are nearly 900 rentals listed in our city on Airbnb’s site; during Stampede, rates can quadruple. The vast majority of people who rent out their property have no problems at all, especially since renters must register with the service and both renters and homeowners can be reviewed, making them at least somewhat trackable should anything happen. Further, many choose to simply rent out a single room in their primary residence, which allows them to meet new people from around the world as tenants.

The first risk factor is self evident given recent events: the trashed house in the news was rented using stolen credit cards, and two weeks later no culprit has been nabbed. While the host guarantee means victimized homeowners won’t be out of pocket for long, irreplaceable items are, when destroyed, irreplaceable. Also important to know: if you’re a renter, it may be against your lease agreement to sublet your apartment. Review your agreement and check with your landlord before listing your property.

Many advise that the ideal method to use Airbnb for extra cash is to rent out a second home, keeping your primary residence for you and your family. Otherwise, think about the worst case scenario – basically what happened to the Kings – and see if it’s something from which you could move on with no lasting scars.

Do you have home ownership questions? Contact me!

As you may or may not be aware, lenders offering a mortgage to those purchasing a home with less than a 20 percent down payment usually require that mortgage be backed by mortgage loan insurance; the most familiar provider of mortgage loan insurance is the Canada Mortgage and Housing Corporation, a government of Canada operation. This is a good thing, as it protects banks against defaults, while lowering the barrier to entry into the housing market. Homebuyers can purchase (typically their first) homes with as little as five percent down, so long as they’re willing to pay the CMHC premium as part of their mortgage.

Last month, CMHC announced it was increasing premiums effective June 1, 2015. These new premiums only affect buyers with a down payment of less than ten percent, and are intended to maintain CMHC’s capital holdings.

Homebuyers putting ten percent or less down will now pay a CMHC premium of 3.85 percent, up from 3.35 percent. According to CMHC, this should result in affected buyers paying about $5 per month more in insurance.

Like all insurance companies, CMHC maintains a large amount of capital holdings, which rise and fall as investments do. The money the company makes on these investments helps to pay for claims; by using this model, insurance companies are able to keep premiums relatively low while still having cash on hand to pay claims. So there you go; the more you know.

Want to know more? Contact me!

1061 Panatella Bv NW

No viewings are possible. This is a Civil Enforcement sale under Section 7 of the Civil Enforcement Act in Alberta. Most information taken from tax records and community historical information. This property is offered as is/where is and no warranty is given. Please do not enter the property. Listing agent has not been able to view the interior of this property and as a result no additional information is available. The home is believed to have 3 bedrooms upstairs with an ensuite and a second full bath; and an open kitchen plus a living/dining area with a half-bath on the main floor. Located within a 2-minute walk of restaurants, groceries, a park with a playground and public transportation.

To view full listing details visit my web page.

New Real Estate Fees for 2015 As reported by the Calgary Herald, last week’s provincial budget included some pretty hefty hikes to land title and mortgage registration fees, which are paid by the buyer at the time of a transaction’s closing. These fees are calculated, in part, as a percentage of a home’s selling price, and have remained stable since 2011.

After July 1, 2015, buyers will pay 0.12 percent of their new home’s purchase price in mortgage and land title registration fees, up from 0.02 percent, in addition to a flat fee of $75 (increased from $50). What that means to the average homebuyer is that instead of paying $290 (based on a $500,000 home with a 20 percent down payment), they’ll now be forking over $1,230.

User and registration fees went up virtually across the board in this latest budget, and so it’s not a huge surprise that these particular ones did too. Alberta’s land transfer and mortgage registration fees were among the lowest in the country, not to mention our being blessed with no land transfer taxes, and so its unlikely this will have any effect on Calgary’s real estate market other than inspiring some grumbles as buyers write cheques for closing costs. When Ralph Klein slashed these fees from 0.1 percent to 0.02 percent, interest rates were higher and the market slower than we currently enjoy; in our present economic climate, this increase is a fairly obvious move.

It is always important to consider closing costs when determining how much house you can afford. Remember, while the mortgage will likely be paid off over 25-plus years, closing costs are due right away and add up to several thousand dollars. Curious about what closing costs you may be looking at when you purchase? Check out our Buyer’s Guide, then contact me!

91 Copperfield Ri SE

Act fast, this is the lowest priced single-family home in the area! Bright and functional Jayman home with lots of room for a growing family; over 1,450 sq.ft. of developed space, with still more room leftover for storage. Nicely appointed with upgrades and fresh paint. Maple kitchen with a centre island and a dining area surrounded by windows. Large living room features a gas fireplace with maple mantle and tile surround. Lower level media room, wired for sound. Large deck overlooks the fenced south back yard and parking pad. This home is located on a quiet street, and is a short walk to parks and playgrounds, transit, shopping and more. This is a good one.

To view the floorplan, virtual tour and full listing details visit my web page.

At a time when there is a lot of fear around how provincial budget cuts will affect education spending, here’s some good news: the Calgary Board of Education has been advised that the previously announced starter schools in West Springs/Cougar Ridge, Cranston, Saddle Ridge, and Aspen Woods will instead have complete build outs. What this means is that instead of building in phases, where each of these buildings would accommodate only 250 students in the first phase, the schools will be built in full.

As a West Springs resident who was subject to a lottery to get his son into the kindergarten that’s five minutes’ walk away, I’m obviously thrilled with this news.

Construction is planned to begin this summer, and there is an open house for residents affected by this announcement on February 25 at 6:30 pm, at the Education Centre downtown (1221-8 Street SW). For more information, click here. And I’m happy to discuss my experiences entering the school system this year, just contact me!

If you’ve seen anything in the news about residential real estate lately, it’s probably been doom-and-gloom talk about how sales in January were down nearly 40 percent from January 2014 – you know, the year of record sales when I barely had time to grab a coffee between appointments many days. That kind of talk sells newspapers (at least, as much as newspapers sell these days) and plays nicely into the narrative that Alberta’s on the cusp of an economic apocalypse, but the truth is, the market’s doing just fine, and should continue to do so throughout the year.

We’ll likely continue to see lower year-over-year sales and price increases in residential homes over the next few months, which is to be expected: not only is the lower oil price slowing our economy, but Calgary went from a red hot sellers’ market early last year to a more balanced and sustainable one in the latter half. That balance – having the right number of properties for sale in relation to the number looking to buy – is ideal, and healthy. Without needing to rush buying decisions, but still having plenty of selection from which to choose, Realtors like myself can better help home buyers find homes that meet their needs and satisfy their wants. (For more on buyers’ vs sellers’ markets, and some consideration on when is the right time to sell your home, visit here.)

Despite the actual number of sales going down in January, there was both an increase in the number of properties listed and a healthy 7.7 percent increase in the year-over-year benchmark selling price. Nothing to worry about on that front.

Could the market slow down significantly? Sure, it’s possible, especially with the talk of major cuts across the board in the next provincial budget. People who were on the fence about selling and are now afraid prices are going to crater will go ahead and list their homes to beat the rush, while others may decide to downsize as their personal financial situation changes. And without a doubt, this year’s market won’t be nearly as hot as 2014’s. Still, as you’re reading or watching news stories about the dire future of Calgary real estate, take a moment to remember the solid fundamentals on which our housing market is based; there’s no bubble to be found here, which means there may be a slowdown, but there won’t be a crash.

Questions about the right time to buy and sell in our current economy? Contact me!

Also: the Calgary Home + Garden Show is quickly approaching, and organizers have sent out a Valentine’s Day promotion. To buy tickets for the event (taking place February 26-March 1 at the BMO Centre) and save $5 in the process, click here and use the promo code LOVE. Offer is valid until February 18.

260 Walden Me SE

Massive pie lot. Fresh contemporary decor. Open Jayman plan with a large breakfast bar and a separate eating area. Tones of windows let the natural light from the west facing back yard flood in, and what a yard. It’s HUGE! Seriously, its nearly a 1/4 acre! Large bonus room with tall ceilings. Big master bedroom with a large ensuite that includes a deep soaker tub and a separate shower. Upper floor laundry. Extra long double garage. Unspoiled basement awaits your storage items or future development plans. Furnace includes an HRV system (an eco-friendly fresh air supply). This is a great home at a great price.

To  view virtual tour, floor plan, more photos and full listing details visit my web page.

51 Coral Springs Cl NE

Original owner home, first time offered for sale! This one is a good one; clean, fresh, and well-maintained. There’s lots of space for the family. Living room / dining room plan with a large breakfast nook. Enclosed family room with a fireplace and a door to close out the TV noise. Upstairs you’ll find a large bonus room and three good-sized bedrooms. The master’s ensuite has a stand-up shower and a separate deep soaker tub. Main-floor laundry and a large double garage. the unspoiled basement is awaiting your storage items or finishing ideas. Plenty of parking available.

To view the virtual tour, more photos, floor plan and full listing details visit my web page.

24096 434 Ave W

Great piece of land with gorgeous sweeping mountain and valley views; tons of potential here. 39.51 acres on a paved road just south of Okotoks. Two approved single family homes, one a 1988 bungalow at approx 1000 sq.ft with 3 bedrooms, 1 bedroom and an over sized single garage, the other an older 2109 sq. ft 3-level split, with 3 bedrooms and 1.5 bathrooms. Both homes are owner occupied, and require updating as they are in original condition. The property has a dug-out pond, a grainery, and a barn with power, water, 2 box stalls, 4 tie stalls and a tack room. First time on the market as it has been in the same family for many years.

To view more photos and full listing details visit my web page.