How smoking at home reduces property values

A recent survey of Ontario real estate agents in Ontario found that smoking in a home could lower the value of your property by up to 30 per cent. The survey was sponsored by Pfizer Canada and besides the obvious damage by staining walls and carpets, it can leave a smell that is very hard to eliminate.

It makes sense that a home with a smoky smell or strong odour will be harder to sell as it will deter most buyers. 

Landlords are permitted to include no smoking clauses in their leases. But they can only evict a tenant who smokes if they can prove the smoking has damaged the unit or is bothering the other tenants

The Non-Smoker’s Rights Association published their own study demonstrating that the average costs for a landlord to clean an apartment is two to three times greater when it was occupied by a heavy smoker. They also quote statistics from Canadian Fire Marshals demonstrating that cigarettes, lighters and matches remain one of the top causes of residential fires.

Similar statistics are found with resale cars where the prior owner was a heavy smoker and it is difficult to remove the smell from the upholstery.

Buyers, be suspicious if you notice the fans going or electric air fresheners whenever visiting a home for the first time.

Sellers, don’t try to cover up or hide odour issues that you know about. Get rid of any foul odour before putting your home for sale, to maximize your return.

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How to Get Your Boss to Say Yes

You have this really wonderful idea but:
A.) It's a little bit out of the ordinary, so the traditional way you go about getting approvals is not going to work.
B.) Your boss has previously shown signs of being "risk adverse."

How do you get the go-ahead?

The first answer is don't ask — at least not at first.

Are we advocating the old adage that it is always easier to ask for forgiveness than for permission? Sort of. What we're saying is that your first series of actions should not create a situation where you have anything to apologize for — even if you're not acting with the boss's permission.

The way to make that happen?

1. Your initial steps should have you acting like an entrepreneur. You want to act quickly with the means at hand. (That's right — before you ask for approval.) What's right around you that you can employ?

You have to be the judge of the size of those steps. Executing it must carry no negative consequences for anyone, especially you and your boss. Then, keep taking those tiny steps for as long as you can.

As you are taking your small steps, under the radar screen, get other respected people's help and fingerprints all over it. That will do a few things for you, all of them good. You will: gain additional perspectives ("Hey, did you ever think about this?"); have access to additional resources ("Sure, we have a lot of X that we aren't using); and be introduced to other like-minded people that, quite frankly, might give you a bit of protection should you be discovered at this early stage. Again, only you know how far you can go with this. The politics of every organization are different, and you don't want to do anything that could be taken to mean you are trying an end-run around your boss.

2. At some point (again, you have to be the judge) you'll want to let your boss know what you're doing. Even then, avoid asking for approval if you can. The conversation might go something like this:

"Hey, boss. I have this idea that fits in with what the company is trying to accomplish and could make some money. I haven't a clue if it is going to work, so I'm just spending a little time during off-hours or during downtime on it. I just wanted to give you a heads-up."

This conversation:

• Keeps your boss from being surprised. (That's always a good thing.)
• Buys you time to see if the idea is actually doable. If it's not, you don't have anything to ask your boss for later.
• Gives you information. You might learn the idea is doable, but you don't want to do it. And that is a good thing to know, before you offer up the idea for formal approval. (You can suggest people who would be perfect to spearhead the initiative.)

The smart boss will appreciate your enthusiasm and initiative and maybe even try to help, or offer a suggestion or two. At the very least, she won't stop you at this point.

The dumb boss will say something like "if you have any time to spare, work on what I already assigned you to do." If this happens more than once, you probably want to transfer to another boss or job. Research has shown that a prime determinant of workplace satisfaction and performance is a supportive boss who respects you and your ideas.

Okay, you've taken some more steps. The idea is a good one and you want to be involved in it going forward and it's going to require your boss to not only sign off, but also provide some resources. What do you do?

3. Make your best prediction of what the acceptable loss is for other key players, especially your boss. You already know the first couple of steps to take. You position the idea in the context of her hot buttons, whatever they may be.

"Hey boss, you know how you are always talking about how our department has to be more innovative. Well, the thing I have been working on seems to fit with that perfectly."

From there, you want to make sure you keep your requests (at least at first) within her realm of acceptable loss. How much is she likely to be willing to risk and write off if the idea fails? How can you do everything humanly possible to keep the number at risk below that?

Implicit in this is that the next step is going to be relatively small. That's a good thing. When you are facing the unknown — and starting something new certainly qualifies — you always want to begin by taking small steps. In fact, when you have been acting on your own, and even when you are acting with the approval of your boss, you are preceding just as successful serial entrepreneurs do:

• They take a small step toward their goal.
• They pause to see what they learned from taking that step. ("Yes, it looks like it is worth continuing for now.")
• They build off of what they learned.
• The process repeats until they (and you) achieve their goal — the project is a success — or they realize it cannot be done, or they find something more appealing.

Who knows? Telling your boss that she's acting like one of the most successful entrepreneurs in history might get things to go in your favor.

10 Most Common Interview Q&A

There's no worse feeling than when you're in an interview and the interviewer asks you a question to which you don't know the answer. The best way to handle this dreaded debacle is to go into the interview prepared. Familiarize yourself with a few common difficult questions and arm yourself with answers prepared ahead of time.

Check out these tough interview questions and some suggested responses in order to avoid an interview disaster:

Tough question No. 1: "Tell me about yourself."
This is usually the opening question in an interview and it's the perfect moment for you to toot your own horn -- not to tell your life history. Your answers should be a quick rundown of your qualifications and experience. Talk about your education, work history, recent career experience and future goals.
Suggested answer: "I graduated from University X and since then, I have been working in public relations with an agency where I have generated millions of PR hits for my clients. While I've enjoyed working on the agency side, I'm looking to expand my horizons and start doing PR for corporate companies such as this one."

Tough question No. 2: "Why did you leave your last job?"
This is your chance to talk about your experience and your career goals, not to badmouth a former boss or give a laundry list of reasons for your exit. Instead, focus on what you learned in your previous position and how you are ready to use those skills in a new position.
Suggested answer: "The company just wasn't a good fit for my creativity, but I learned that organizations have distinct personalities just like people do. Now I know where I'll be a better fit."

Tough question No. 3: "Where do you see yourself in five years?"
Let the employer know that you're stable and you want to be with this company for the long haul. Keep your aspirations to take over the firm with which you are interviewing, own your own company, retire at 40 or be married with five children to yourself.
Suggested answer: "I want to secure a civil engineering position with a national firm that concentrates on retail development. Ideally, I would like to work for a young company, such as this one, so I can get in on the ground floor and take advantage of all the opportunities a growing firm has to offer."

Tough question No. 4: "What are your weaknesses?"
The key to answering this age-old question is not to respond literally. Your future employer most likely won't care if your weak spot is that you can't cook, nor do they want to hear the generic responses, like you're "too detail oriented" or "work too hard." Respond to this query by identifying areas in your work where you can improve and figure out how they can be assets to a future employer. If you didn't have the opportunity to develop certain skills at your previous job, explain how eager you are to gain that skill in a new position.
Suggested answer: "In my last position, I wasn't able to develop my public-speaking skills. I'd really like to be able to work in a place that will help me get better at giving presentations and talking in front of others."

Tough question No. 5: "Why were you laid off?"
This question will become more common as the economy continues to slow down. It's a tough question, however, especially because many workers aren't told exactly why they were laid off. The best way to tackle this question is to answer as honestly as possible.
Suggested answer: "As I'm sure you're aware, the economy is tough right now and my company felt the effects of it. I was part of a large staff reduction and that's really all I know. I am confident, however, that it had nothing to do with my job performance, as exemplified by my accomplishments. For example..."

Tough question No. 6: "Tell me about the worst boss you ever had."
Never, ever talk badly about your past bosses. A potential boss will anticipate that you'll talk about him or her in the same manner somewhere down the line.
Suggested answer: "While none of my past bosses were awful, there are some who taught me more than others did. I've definitely learned what types of management styles I work with the best."

Tough question No. 7: How would others describe you?
You should always be asking for feedback from your colleagues and supervisors in order to gauge your performance; this way, you can honestly answer the question based on their comments. Keep track of the feedback to be able to give to an employer, if asked. Doing so will also help you identify strengths and weaknesses.
Suggested answer: "My former colleagues have said that I'm easy to do business with and that I always hit the ground running with new projects. I have more specific feedback with me, if you'd like to take a look at it."

Tough question No. 8: "What can you offer me that another person can't?"
This is when you talk about your record of getting things done. Go into specifics from your résumé and portfolio; show an employer your value and how you'd be an asset.
Suggested answer: "I'm the best person for the job. I know there are other candidates who could fill this position, but my passion for excellence sets me apart from the pack. I am committed to always producing the best results. For example..."

Tough question No. 9: "If you could choose any company to work for, where would you go?"
Never say that you would choose any company other than the one where you are interviewing. Talk about the job and the company for which you are being interviewed.
Suggested answer: "I wouldn't have applied for this position if I didn't sincerely want to work with your organization." Continue with specific examples of why you respect the company with which you are interviewing and why you'll be a good fit.


Tough question No. 10: "Would you be willing to take a salary cut?"
Salary is a delicate topic. In today's tough economy though, how much a company can afford to pay you might be the deal breaker in whether or not you are offered a position.
Suggested answer: "I'm making $X now. I understand that the salary range for this position is $XX - $XX. Like most people, I would like to improve on my salary, but I'm more interested in the job itself than the money. I would be open to negotiating a lower starting salary but would hope that we can revisit the subject in a few months after I've proved myself to you."

Variable Rate Mortgages When Rates Are Rising

The homeowners have enjoyed a long period of low interest rates. To say it has been a great ride is an understatement, however there does seem to be a trend towards increasing rates. The question is, "What should I do now?"

The prime lending rate, which is used for variable mortgages, is at 3%, with current pricing for variable mortgages below prime, ranging from 2.15% to 2.85%. I will use 2.50% for variable rates as it is close to the median. Let's compare that to the 5-year fixed rate, which is currently at 4.14%.

Currently there is a variance of approximately 1.64% between fixed and variable. So, each day, week, or month that goes by, your cost of borrowing is dramatically less. There is also the opportunity cost, which would be the difference between your payments for fixed or variable. Take for example a mortgage for $200,000 on a variable rate the payment is $897.23 per month, versus the 5 year fixed rate at $1,067.27 per month. So, what can you do with the $170 difference every month? That could cover date night and a babysitter or a couple of rounds of golf. Hmmmm.

Can rates increase and diminish the variance between the terms? Yes, they can. The questions we don't have an answer to is how long will it take to equal the fixed rate, and where will rates go.

What we do know is that there have been studies over the last 15 years which show that less interest is paid with a variable rate mortgage than a fixed rate. That being said, I still go back to the nature of the individual. What is your comfort level? Can you sleep soundly at night with a variable rate, or do you need the fixed rate?

There are other methods to reduce the principal of your mortgage without taking a variable rate mortgage, contact your local mortgage specialist to sit down and discuss your options.

Monthly Home Budget Considerations

Whether you are buying your first home, trading up to accommodate a growing family, or even downsizing, one of the most important things you must do when house hunting is create a monthly budget. A budget is simple to put together and will help you avoid financial headaches in the future.

In order to create your budget, the first thing the experts will recommend us to do is make a list of all our current monthly obligations. Start with items that will likely continue after we have bought the house, such as credit card payments, student loan payments, car payments, retirement saving contributions and so on. Now add in the discretionary spending such as the latte we get every few days, the dining out with friends and the money we are setting aside for a vacation. Are there things that we are willing to give up that would free up some cash to put towards the mortgage? After looking closely at our own budget, how much do you have left over, and how much of that are we comfortable putting towards a mortgage payment?

At this point I think it’s important to introduce the term "Total Debt Service," or TDS for short. This number is the result of dividing all our monthly obligations by our gross (before tax) income.

Here is an example of a TDS calculation: Assuming the gross monthly income is $6,000 (before tax) and the monthly expenses include:

$1,500 Mortgage payment
+ $400 Property taxes & Utilities
+ $200 Credit card bill
+ $400 Car lease payment
= $2,500

Total monthly obligations $2,500/$6,000 gross monthly income = 41.6%.

TDS is important because it determines what we can afford, and lenders use this number to qualify us for a mortgage as well. Technically, the lenders has a limit of 40%, but generally the cut off point is 42% to 44%. If you are applying for a mortgage and your TDS is higher by a per cent or two, be sure you can back it up with an excellent credit score and a down payment of at least 20%.

There are a number of online calculators at your disposal and they will help to determine the maximum mortgage payment we can afford. Now ask ourselves, do we want to max out on your mortgage payment? Most online calculators do not have space to put your morning coffee in or your gym membership or the tickets you bought for TIFF. The reality is that most of us will have to sacrifice some of the fun things in life to own a home, but don't let your mortgage payment control you.