Hello Everyone with Real Estate Investments in Hamilton Ontario!!
We hope you had a great Halloween as we did!! This past Halloween was special to us because this was Robin’s first time trick or treating and pumpkin carving, and Bruce’s first Halloween. The family dressed up in a theme of super heroes, Batman, Robin x 2, and Spiderman. I (Erwin) have a minor interest in super heroes because what better way to teach kids about bravery, courage, and self sacrifice. Â As Spiderman’s uncle Ben said, “with great power comes great responsibility.” I don’t have any great powers, however I’m goodÂ at leadership, business, investing and marketing therefore weÂ have tasked our team at Mr Hamilton’s Basket Brigade to feed another 150 families for Christmas and because Cherry and I do alright, we are donating $5,000 to start our charitable foundation.
In other news:
Hydro rates are going up and what can you do about it? Â You can learn more here in my latest contribution to the Canadian Real Estate Wealth Magazine: Click here for article.
I (Erwin), have been shortlisted for REIN’s most prestigious award, the Michael Milenaar Award for Leadership for the fourth consecutive year and winner in 2013, and Realtor of the Year. Â Winners will be announced at the December REIN Meeting. It is an honour to be nominated and thank you to all who submitted nominations, your kind words mean a lot to me and motivate us to help more investors on their path to their financial goals.
How To Check Plumbing and Save Tens of Thousands
At a home inspection last week, I was catching up with home inspector Joe on life, his family and work. He shared a story on how he dropped a bomb on a multi million dollar home south of Lakeshore Rd in Oakville. Â The fully renovated mansion had heated floors, heated by hot water from a boiler. Â These floors are lovely in the winter to walk/sit on and these systems do not circulate dust in the air like a forced air furnace does. The problem however is the plumbing was all Kitec plastic plumbing that is known to leak and cause flooding. Â Insurers will not insure this plumbing and the only remedy is to replace it. Replacing Kitec plumbing in a condo can be $5,000-$10,000, and several times more in a house. For this multi million dollar mansion, the ball park was $500,000. Â If you know how in-floor systems are laid, the plumbing is laid on top of the sub-flooring and underneath the flooring (e.g. hardwood, granite, polished concrete, etc…), to remedy you would have to rip up the flooring and replace the plumbing and redo the flooring plus go into the walls and ceilings to replace pipes then put it all back together.
Unfortunately, the seller, buyer, and respective Realtors where unaware of the issue so it was inspector Joe who had to be the bearer of bad news. Â I also joke with my inspectors how their business is best as they always get paid no matter the outcome of a property for sale as this deal was definitely in jeopardy.
Being a sophisticated investor and Realtor, I know to check plastic plumbing each time I see it in a property we are considering for investment. Here is a picture I took with my smart phone while previewing a property for a client. By checking the date labelled on the piping I knew the plumbing was newer, therefore NOT the flood prone Kitec plumbing but just to be sure, I sent the picture to my client and home inspector to be sure.
Here is a article on Kitec Plumbing:Â Kitec plumbing in your home will cost you
Here’s my summary and recommendations:
Kitec plumbing was widely used in Canada and the U.S. in homes and condominiums built, or extensively renovated, between 1995 and 2007
…recalled around 2005 due to a tendency to corrode at an accelerated rate. It is no longer manufactured.
Kitec plumbing and fittings will experience premature pipe failure, and failure rates will increase over time. The pipes may not just leak but burst, with potential for flooding.
The only complete solution is to replace Kitec plumbing with copper pipes. This will typically require access behind walls and through floors.
- I always check plastic plumbingÂ and recommend you do the same under sinks and coming off the water heater.
- If the property was constructed between 1995-2007, you should be extra weary. Â Copper piping is considered the best however the material is more expensive and labour intensive hence plastic is widely used in modern construction.
- Be aware of the age of the neighbourhood you are shopping
- If you are unsure, ask the owner the age of the plumbing and if there is a pre-inspection report.
Thanks for reading and happy Hamilton real estate investing everyone!
Erwin |Â MrHamilton.ca
PS:Â If you are just starting out investing, start byÂ spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!
PPS:Â If you can not make it in person, join us for our monthly FREE Webinar where we discuss topics and issues related to Hamilton and surrounding area