From time to time, homeowners consider a change in their interior décor in order to improve the appearance or comfort of a room. For anyone thinking about such a change, it’s worth noting that adding a carpet or rug to a room is often the fastest and easiest way to make a dramatic decorative difference. A well-chosen weave, color or pattern will give any room a whole new look in minutes, although the most impressive results usually follow a well-planned approach.

Statements of Distinction
It’s useful to distinguish between carpets and rugs, in terms of their roles. Carpets offer greater floor coverage than rugs, and contribute to more of an overall anchor effect.They are typically used in a solid color as wall-towall broadloom, or in an eye-catching pattern that aligns a room’s furnishings. Rugs and mats are used to provide a welcoming effect at a room’s entrance, or to indicate a pathway or resting spot in common traffic or seating areas. Rugs are also used to create a visual point ofinterest when placed on a bare floor, or placed over a contrasting solid-colored carpet.

Practical Decisions
Before purchasing a carpet or rug, consider how long you may want it. This will help you decide if you will want wall-to-wall broadloom, or a carpet you can roll upand relocate later. Another part of your purchase decision should be the cost of cleaning. Simply put,carpets and rugs get dirty, and they can harbor irritantslike dander and dust mites. So whether they arepermanent or portable, they need to be thoroughlycleaned on a regular basis – especially if you have pets and/or allergy sufferers in your home.

The cost of anunder pad should also be considered when buying a carpet or rug. Underpads help reduce wear and increase comfort underfoot.They also act as sound absorbers and insulators. Aside from determining the area, size and density of pile in your carpet, you’ll need to consider the type offabric you prefer. Most wall-to-wall carpets are synthetic weaves (which may be preferred by some allergy sufferers).

Others are made from jute, sisal, cotton,wool, silk and other natural fibers which are considered more eco-friendly. Many natural carpets and rugs arestill handmade and imported from the Middle East and Asia, and are therefore very expensive. Less expensive manufactured imitations can look surprisingly similar, so buyers must always be mindful of the comparative quality and value.

Decorative Considerations
Once you have decided on a specific carpet or rugfor a room,you shoulde valuate its decorativeeffect. Remove anything that you may decidenot to keep in the room, such as any hanging art or pattern eddrapery that might be replaced. Likewise, if you are considering changing or overing your patterned upholstery, temporarily place a neutral blanket over it. Then, look at the full potential of the carpet,without being distracted by clashing furnishings.

One at a time, introduce new items such as different décorpieces or furniture, until you find the most appealing combinations. Use shapes, patterns, colors and contrasts, and consider a complementary wall color or window treatment, sofacover, apestry, painting or poster art, and any other decorative accessories that interest you. When you are satisfied with the impression your new floor covering makes, take your time to complete the overall look with finishing touches that create a new and totally pleasing decorative effect.

By Nolan Matthias

A. To calculate the maximum monthly payments you can apply to your mortgage is really quite simple. You can use up to 32% of your monthly income for mortgage payments, and an additional 10% for other debts. Thus you can have a maximum of 42% of your monthly income used for debt payments before you no longer qualify for a mortgage. ex. If you make a combined $10,000 in your household, $3200 can be applied to mortgage payments and an additional $1000 can be used for other debt payments. if you have $2000 in other debt payments then you would be able to apply $2200 to your monthly mortgage payment, as long as your total debt payments with your mortgage do not exceed 42% of your monthly income.

By Garry Marr, Financial Post July 31, 2009 

The subprime meltdown has devastated the United States, leaving behind a sea of foreclosures and empty homes, all ready to be snapped up by frost-bitten Canadians with a red-hot currency.

  Photograph by: Getty Images, Getty Images  

There is something about a bargain that few of us can resist. Is there any better sale going on right now than U.S. homes?

 

The subprime meltdown has devastated the United States, leaving behind a sea of foreclosures and empty homes, all ready to be snapped up by frost-bitten Canadians with a red-hot currency.

 

The Washington D.C.-based National Association of Realtors says 23.6% of all international homebuyers in the United States last year were Canadian, up from 11% in 2007. It’s no wonder. During the same period, the median price of U.S. vacation homes fell to US$150,000, for a 23.1% drop in price.

 

Tannis Dawson, a Winnipeg-based tax and financial planning expert with Investors Group, says Canadians are accustomed to looking to the United States for deals, so why should real estate be any different? But she cautions the ramifications of a property acquisition have to be carefully considered. “Every day I get one or two emails [about buying U.S. property]. I get way more calls than I ever used to,” Ms. Dawson says.

 

The first thing to consider before buying is how much it’s going to cost you to carry your property. A major component of your carrying costs will be property taxes and that’s a thorny issue in some states for foreign investors.

 

“In Florida, there is a maximum that they can increase property taxes for residents, but if you’re not a resident they can go higher,” says Ms. Dawson.

 

If you’re not renting out your property, there is no impact on your personal taxes. If you are renting, there is withholding tax on the income that has to be paid to the Internal Revenue Service on a monthly basis.

The likelihood is your expenses will outweigh your income and you’ll get get that tax back, but you still have to file a U.S. tax return. You then have to report the income on your Canadian tax return, but you will get a foreign tax credit.

 

Another key consideration, especially if you’re buying a condo, is the financial situation of the building you’re moving into. The housing crisis has meant consumers have walked away from their units — and condo fees. If the apartment you’re buying is in a complex where 30% of the units are in arrears on their condo fees, the other owners are going to have to pick up the slack.

 

Then there are capital gains, which most Canadian investors are expecting to be based on today’s prices. In the United States there is a flat fee of 15% on capital gains to the U.S. federal government, not to mention any state tax. There is a also a 10% flat tax for non-residents.

 You still want to go ahead? Forget about financing any property. It’s almost impossible for Canadians to borrow in the Unites States, so you’ll have to use cash.

None of this seems to be stopping Canadians who are now being targeted with advertising blitzes by the U.S. real estate industry.

 

Kimberly Kirschner, past president of Realtor Association of Greater Miami and the Beaches Inc., expects even more Canadian activity this year because of the low prices. “You can get a two-bedroom apartment on the beach for US$150,000,” says Ms. Kirschner, talking about a unit near Hollywood, Fla. a popular Canadian snowbird destination about 30 minutes north of Miami.

 

The maintenance cost, basically your condo fee, can easily top US$500 a month for that unit. Add in another US$5,000 in tax and you are well above US$10,000 a year to carry a US$150,000 unit. Rent the same property and it might cost you US$1,500 a month.

 

“People are betting on capital appreciation now that prices have gone down,” says Ms. Kirschner.

 

But should you take that bet? “I don’t think you buy a second property to make money,” says Halifax-based financial planner Hugh Smilestone, who has a number of clients who own real estate in Maine.

 

Prices have dropped by about 10% in the region, not as much as the sunbelt, but it has encouraged some buying.

 “I think a vacation property starts out as a luxury. I never tell people to count on it as an appreciating asset,” he says. But Canadians may be thinking otherwise these days. 

Dusty Wallet Last week’s DW dealt with the risky practice of using your credit card for car insurance, noting the practice does not cover drivers for a number of risks that may arise from an accident. An alternative that one sharp DW reader pointed out is to get a special add-on to your regular car insurance.

The addition lets you take the insurance from your car and transfer it to a rental car when you’re on vacation.

The extra insurance is less than $100 per year on most policies.

One drawback is the additional coverage is usually limited to the United States and Canada. © Copyright (c) National Post