Watch out for Homeowners Insurance Scams

Did you buy your homeowners insurance online from a company you had never heard of?

Chances are likely that if you did, and you ever try to collect for damages done to your house, that you will never see a dime of that money.

Online insurance scams are a dime a dozen - and there are so many companies out there that are just fronts for insurance scams. They wow you with low prices and stylish websites, but the company is based overseas - which means they have no legal requirement to give you any money should anything happen to your home.

Next, what about a company where you meet the insurance agent in person - and you've heard about the company?

Well many times insurance companies don't like to pay out to homeowners. They use every trick in the book to reduce how much they need to pay you and/or increase how much money they can dig out of you.

Tricks like:

1. The company’s adjuster doesn’t give you the best estimate.

2. You are forced to buy extra policies because you live in a high-risk area - and then they refuse to pay up because you live in a high-risk area.

3. A bad credit report increases your premiums - and then they refuse to pay up because they think you are trying to scam them with fraudulent claims.

4. They jack up their prices afterwards, even though you had nothing to do with the cause of the damage.

5. You end up paying twice when you cancel your policy - because they keep charging your bank account or credit card.

6. The company encourages you to use its mechanic - and then skimps on the repairs. (You are entitled to use your own mechanic to make sure the repairs are done properly.)

7. You are encouraged to take supplemental policies.

8. They don't actually give you the best price, but instead jack up the price because they think you are a sucker.

9. You are led to believe you aren’t covered after you lose your job - so instead they sell you a joblessness supplement.

10. You are led to believe the insurance company’s decision is final - but this is not legally the case. You can take your insurance company to court if you want to, and make them pay your legal bills, if they refuse to pay up on a legitimate claim.

11. A very long list of exceptions in the fine print for things that the company refuses to provide coverage for.

14 Interesting and Weird Examples of Condo Architecture

So I went looking for examples of strange condo architecture, and the top google images results were all from my website.

It took me a moment to realize. "Wait a sec, that is MY website!"

After my amusement wore off I realized I would need to look harder (and screen out examples of strange architecture that are already posted on My Search for a Home). I feel obligated that I don't post the same weird architecture twice (although I did make an exception for the hanging gardens photo on the right).

So I had to search a bit harder, but I found these examples which add to my collection of strange, interesting and weird condo designs.

Note some of these are actually hotels instead of condos, but they're still very interesting.

Apartment Rental Scams in Toronto

How to Recognize and Avoid Apartment Rental Scams in Toronto

If you're looking for an apartment, the last thing you want is to fall victim to a rental scam that takes your hard earned cash and leaves you with nothing. Scam artists like to take advantage of prospective tenants because emotions involved in the apartment-hunting process can make people more vulnerable and susceptible to making mistakes, often just by trusting people when you should not.

If you are feeling excitement and enthusiasm about finding a new home, your eagerness might make you become more trusting. Scam artists also prey on apartment hunters who are in a time crunch (because of a job relocation or personal issue, for example) and are desperate to find a new place as soon as possible.

What is a Rental Scam?

Rental scams are a variation on a theme. The scammer tries to get money from a prospective tenant for an apartment that the scammer is in no legal position to rent - meaning they don't own it, are not the current renter looking to sublet, etc. The apartment might be real or even fictitious. The scammer could even be a real landlord, former landlord or often just an impostor.

Often they take possession of your money and then you never see or hear from them again. Only to find out the apartment was never theirs in the first place.

Fortunately, there are many ways apartment hunters can lower the likelihood of getting tricked in a rental scam.

#1. Always view an apartment in person - or have a friend or family member view it for you. Never rent anything you haven't seen in real life and can verify it is really on the market. (Seeing lots of photos of it doesn't count.)

#2. If you see an apartment for rent on Kijiji or Craigslist, and the owner is overseas (and unavailable to give you or a friend a tour of the apartment) then it is most likely a scam.

#3. Ask the owner what landmarks / amenities are near the apartment. If they cannot name any then it is probably a scam.

#4. If they try to pressure you to send a payment immediately, it is probably a scam.

#5. Don't assume that just because someone says "God Bless you!" that they are a good Christian or anything like that. Scam artists love pretending to be religious and kindly because it leads people into a false sense of security.

#6. If the price seems to be too good to be true, it probably is.

#7. Don't be in a rush to pay immediately. Take your time and make sure the apartment is for real.

#8. Visit the building and when a tenant leaves ask if they like the building managers, the building in general - maybe they even know the person who lives (or used to live) in the apartment you are hoping to rent.

#9. Check Toronto real estate rental listings - if you cannot find the apartment that is being rented, or worse, if it is being rented, but at a different price - then something is fishy. A quick way to do this is to google the address of the apartment and look for rent listings.

#10. Often the scammer pretends to be the landlord, in which case you should always insist on meeting the landlord in person at the apartment so you can see it in person. If they refuse to meet you, or have someone else meet you, if they don't produce the keys and show you the apartment - then something is fishy. eg. A landlord that meets you there, but doesn't have the keys should not be trusted.

#11. Never let your guard down. Never give them a money order, cash, or anything other than a cheque. With a cheque you can call the bank and ask them to put a stop on the cheque - which means you won't lose your money if it turns out to be a scam.

#12. Don't assume that if you used a reputable website to find the apartment for rent that it is legit. Many rental scams are placed in legitimate rental websites and renters news catalogs.

#13. Sometimes the scammer might even use the name of a real landlord - in which case find out from a secondary source what their phone number is so you can contact them directly.

#14. If something feels wrong or fishy, look elsewhere. Avoid anything that is a red flag.

#15. If they ask you to send money wirelessly (not a cheque) for an apartment you haven't seen, its a scam.

#16. If they are asking you to lease the apartment and want you to pay before signing lease documents, its a scam.

#17. Never rely on promises, photos or even video of the apartment. See it IN PERSON.

#18. Even if you do see it in person, it is always possible they might try to rent it to multiple people at the same time - and they don't even own it. Moving day comes and 20 people all try to move into the same apartment - complete with 20 different copies of the same key. Make certain they are the owner of the place and not just some Joe Schmoe who lived there for 2 months.

#19. 99% of apartment rental scams are because the person didn't visit the apartment in person.

#20. If the supposed landlord seems too eager to lease the apartment to you, its a scam.

#21. If the supposed landlord suddenly lowers their price in an attempt to make it more appealing, its a scam.

#22. If the supposed landlord didn't check your credit score / criminal background / occupation, its a scam.

#23. If they are extremely willing to negotiate the rent and other lease terms with you, its a scam.

#24. If you're asked to pay 3 or more months in advance (or a whole bunch of upfront fees), its highly suspicious.

#25. If you say you want to consult a friend or a lawyer (regarding a lease agreement) and they tell you don't need a lawyer or to consult your friend, then they are up to something fishy and they want to rush you into signing and paying.

#26. If you ask the supposed landlord about other apartments they have for rent and they either don't have any, or they do but it is more expensive, be extra suspicious.

#27. If the landlord has a convenient excuse for not being able to meet you or show the property its a scam. eg. In the hospital, out of the country, visiting family for a funeral, etc.

#28. If the person has really bad English (like Nigerian spam emails), its more likely to be a scam.

#29. If they offer to help you get a green card for the country in question, its a scam.

#30. If they are Canadian but don't have a Facebook profile, it is suspicious. (80% of Canadians have Facebook profiles.)

What To Do If You Get Scammed?

If you become the victim of an apartment scam, you might feel there's not much you can do. But there are steps you can take to help catch who's behind the scam, get your money back, and put this unfortunate experience in the past.

#1. If you sent a cheque, put a stop on that cheque by calling your bank.

#2. Call the police. They can advise you on other options you can do to try and get your money back.

#3. Ask the bank to trace who cashed the cheque.

#4. Contact the publisher where you saw the ad. See if they have any contact info for the scammer which allows you and the police to track them down.

#5. If the scam occurred in the USA contact the Federal Trade Commission (FTC), which is the federal consumer protection agency. They can also provide tips for tracking down scam artists.

#6. Review your correspondence and look for red flags - and anything that might be a clue to the scam artist's whereabouts.

#7. Try finding another one of their ads, pretend to be someone else and see if you can catch them the 2nd time around.

#8. Learn from this experience as a lesson on when not to trust people.

#9. Warn others not to make the same mistakes you did.

Toronto house prices to slip in 2015

TD Bank report estimates Toronto and Vancouver real estate markets are 10 to 15 per cent overvalued, compared to 10 per cent for rest of country, and due for a market correction.

The first of the big Canadian banks has weighed in with a warning that Toronto’s housing market is overvalued by 10 to 15 per cent.

So is Vancouver’s, says TD Economics in a report released yesterday, noting that both cities have been seeing “frothier conditions” than the rest of the country, where house prices remain at least 10 per cent overvalued, largely because of low interest rates which have been allowing rampant bidding wars.

“Toronto and Vancouver make up 40 per cent of the Canadian housing market, so that’s what’s really driving the overvaluation measure,” said TD economist Diana Petramala in an interview.

The coming increase in interest rates will cause a "negative economic shock" could will send resale home prices tumbling by 25 per cent, Petramala notes. But it’s far more likely there will be a “gradual unwinding of excesses” in the Canadian market as interest rates slowly rise, along with incomes, over the next few years.

Toronto home prices jumped 6.8 per cent in 2012 and 5.4 per cent in 2013, they are expected to rise just 2.7 per cent this year and then slip by 1.2 per cent in 2015, when interest rates are expected to start climbing, the report forecasts.

Commercial Real Estate in Vaughan

How do you know a region is doing well in terms of economics?

When the prices of commercial real estate start going up, you know the economy is booming.

In Toronto this is really evident in the satellite regions of the GTA, places like Vaughan, Richmond Hill, Markham, Woodbridge and Thornhill.

Lets take for example the Vaughan Mills Shopping Centre, located near Bass Pro Mills Drive. It is a booming shopping centre on what would traditionally be the outskirts of Toronto, but because of the exploding population growth in Vaughan - lots of suburbs and apartment buildings - the end result has become a strong need for places close to home where people can go shopping and buy their amenities.

The Vaughan Mills Shopping Centre however is just one example of this phenomenon - and I should point out that historically the location was more well known for the fishing and hunting store Bass Pro (hence the street name), but now the place is a haven for shoppers looking for high fashion, shoes and generic shopping mall products.

Another example is companies like Omni Hearing, a hearing clinic located in central Vaughan, a small company which is doing so well financially that they are now expanding to a new location in Oakville. Omni Hearing offers excellent service, a broad selection of hearing aid styles / hearing products, and free hearing tests. It is so small that when you look at a photo of the location you realize just how easy it is to make a financially successful business in Vaughan.

What this means is that when you build a business in a place with a booming economy, as long as you provide great service / fair prices, you are guaranteed to succeed financially.

So what if I wanted to open a company in Vaughan, either a new business or expanding an existing business?

Well then I will need to find a good location - or depending on the niche market, a place I can afford and then do a good job advertising it.

In which case the website I like browsing is ICX.ca. It isn't just for Vaughan, it is commercial real estate for all of Canada. So if you are looking to buy commercial real estate, that is the website I recommend.

When browsing Vaughan's commercial real estate on ICX you realize something... there isn't a lot of places actually available. Why? Because the businesses in Vaughan don't seem to suffer from bad economics very often. The few companies that don't survive (and the land ends up being sold) simply were not competitive, had a bad niche market, the manager probably mismanaged the business, etc.

You can also browse leases instead of sales.

Just for fun I am also browsing other locations across Ontario to see what is available. One of the things I enjoy doing is browsing the listings for small towns that have a really bad economy - sometimes they have very few places on the market, and sometimes they have a LOT - but the prices are super cheap because nobody is buying. (A bit like browsing commercial real estate in Detroit.)

For example if you browse the commercial real estate of Windsor (right across the river from Detroit) what you find is that even larger buildings are for sale - and while the prices are sometimes still in the millions, they are comparatively cheap since the economy in Windsor-Detroit is so weak.