Friday, October 30, 2009

New Ontario HST tax rules on new homes and resale homes

As of July 1, 2010, it is proposed that Ontario will introduce a Harmonized Sales
Tax (HST) which will be collected by the Canada Revenue Agency (CRA). The
construction industry, including homebuilders, will be greatly impacted by this
new tax.

As a homebuyer, you need to know how this will affect you. The new harmonized tax will apply to new homes, but not resale homes. However, the new tax may have an effect on other expenses associated with buying a house such as closing costs.

Here is a link to the transitional rules associated with the HST.



Here is a link to Helping Homebuyers and the Housing Industry with an Enhanced New Housing Rebate, a New Rental Housing Rebate and Transitional Rules

Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

Tuesday, September 22, 2009

A ‘Do’ List for Prospective Homebuyers

For most Canadians, buying a home is the most significant investment of their lives. And although real estate sales in 2008 are continuing strong with prices still on the rise, your local Coldwell Banker® sales professional will tell you that today’s market still presents many genuine real estate opportunities for homebuyers. Housing inventory is moving up in most major centres across the country, leading to a more balanced market. Historical data demonstrates that purchasing a home has proven a sound long-term financial investment. However, homebuyers – especially first-time buyers -- are often understandably anxious when it comes time to making what could be the largest purchase in their life. Coldwell Banker Real Estate LLC has come up with some simple "do” and “don’t" lists to make the process easier for everyone dreaming of homeownership.
The Homebuyer ‘DO’ List:
• DO utilize free online tools to arm you with as much knowledge as possible. For example, the Home Price Comparison Index available at http://www.coldwellbanker.com offers buyers a way to compare average housing costs in over 400 markets across North America.
• DO access and closely review your credit score. A sound financial track record and solid credit score can help lock in a loan and lower interest rates. Check your records in advance to catch any errors ahead of time, and to better understand how lenders may perceive you.
• DO explore mortgage pre-approval. Getting this early green light will help others involved with your purchase that you are serious about home ownership – and well-qualified.
• DO line up your "all-star" team of professionals before game day. A team of experienced professionals will be key to making the home buying process simple and seamless. Start by interviewing and selecting a sales representative who you "connect" with. Your local Coldwell Banker® sales professional can help you identify suitable lawyers, mortgage lenders, home inspectors and others who play a role in the process.
• DO anticipate your future needs and buy for lifestyle. Try to anticipate how long you’ll live in your next home and plan for major lifestyle changes when possible. What may make a perfect starter home for a couple might not work as well when children come into the picture.
• DO hone in on your housing priorities. Your ideal home may have a porch, a pool and five full baths. But before you start looking, make sure to separate your "must-haves" from your "nice to haves," so you know where you can compromise to meet your budget.
Wondering about the “Don’t” list? Stay tuned for our next column, or better yet, contact your local Coldwell Banker real estate professional now to learn more.


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

A ‘Don’t’ List for Prospective Homebuyers

There’s a lot to consider when buying a home, and especially in today’s changing market conditions. As your local Coldwell Banker® sales professional will tell you, many markets across Canada are beginning to moderate and become more favourable to buyers. So while you’re considering a possible home purchase, here’s a Homebuyer “Don’t” list that may help you avoid some common mistakes:
The “DON’T” List for Prospective Homebuyers:
• DON’T fall in love with the first house or neighbourhood you see. That grand colonial with the picturesque view may win your heart at first glance, but you need to keep an open mind to make sure you find the right fit for all your needs. At the end of your search, it may turn out that the riverfront ranch that’s closer for your commute is a better bet all-around.
• DON’T buy beyond what you can afford. It’s easy to fall into that all-you-can-eat attitude, especially when it comes to your first home purchase. You "want it all" when it comes to size, amenities, location, etc. But remember that your eyes may have a larger appetite than your wallet. Make sure the down payment, closing costs, monthly expenses and taxes are truly within your income and savings range before you sign an offer.
• DON’T treat your home the way you treat your stock portfolio. It’s unrealistic and unwise to expect your housing investment to appreciate as quickly as you’d hope for your high-risk bonds. Buying for lifestyle, and remembering that real estate is a great long-term investment, will help you look at home purchasing and ownership in the right context.
• DON’T jump into a confusing mortgage. Be sure to read carefully through every aspect of the proposed agreements to fully understand your end of the bargain. For instance, an attractive rate now may be difficult to carry if rates change during the term of your mortgage. Arm yourself with information and don’t be afraid to ask questions.
• DON’T underestimate the value of your local Coldwell Banker real estate professional. While being a savvy buyer and doing your homework will help on the road to homeownership, a local expert with years of negotiating experience is invaluable when it comes to scouting out the perfect home – and closing the deal.
If you’d like to know more about our Homebuyer “Do” and “Don’t” lists, or if you have any questions about the market or the home buying process, then just pick up the phone and contact your local Coldwell Banker real estate professional. It might just be the best call you’ll ever make!


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

A Winter ‘tune-up’ for your home

Winter is a time of year when many of us resolve to get ourselves in trim, whether it’s joining the gym or a dance class, or perhaps buying some exercise machinery for our home. We devote a lot of attention to our cars too, putting on the snow tires, changing to winter anti-freeze, loading a bag of salt in the trunk. But what about a ‘tune-up” to get your home operating at top efficiency? While we’re snuggled in at home during the winter months, its a good time to make a few home ‘tune ups’ that could save you money while helping your home to run more efficiently.

A good place to start is by making your home more energy efficient. There are many ways to do it for very little expense. For a modest investment in the $50 range, a thermostat timer will allow you to pre-set your thermostat to turn itself down a few degrees after you go to bed each night, and turn the temperature back up before you get out of bed each morning. If you’re normally out of the house all day, you can achieve even greater savings by repeating the process when you leave your home each day.

Another simple and inexpensive way to improve energy efficiency is to wrap your water heater in insulating material to reduce heat loss. This small task can deliver savings that will really add up over the course of a year. You can also reduce heat loss by installing small pre-cut insulating pads under the cover plate of wall plugs and switches on the walls around your home’s perimeter. Dimmer switches, and the energy-efficient light bulbs will also reduce energy and save you money too.

Your home ‘tune-up’ should include a check of the fire alarms and carbon monoxide detectors throughout your home. You should be sure that you have a working smoke alarm (and that means testing the batteries at least twice a year). installed on every floor of your house. Also, clean the air filters on your furnace. You should also consider having a furnace inspection to ensure its running safely and performing at top efficiency. Again, your energy savings may even cover the cost of the inspection, and the peace of mind it delivers is priceless.

Want to know more about keeping your home running at optimum levels, and preserving its future resale value? Contact your local Coldwell Banker® sales representative, and let’s talk real estate.


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

Canadian real estate market on the upswing

Despite a slow start to the year, the Canadian market has certainly bounced back since the low of last January. Resale housing in particular is again surging forward, and in May reached new heights. According to the Canadian Real Estate Association (CREA), strengthening consumer confidence, low interest rates, and improved affordability are all drawing buyers to the housing market.

In fact, CREA reports that Canada’s resale housing market activity has returned to pre-recession levels. Actual home sales via the Multiple Listing Service® (MLS®) of Canadian real estate boards totaled almost 50,000 units in May 2009.
The national MLS® residential average sale price in May 2009 neared $320,000, and reached the highest monthly level on record. In just four short months, the national MLS® residential average price recovered 16.4% from January’s low.

According to CREA, the supply of new listings coming onto the MLS® continued to decelerate in May, to just over 65,000 units, the lowest level since December 2005. This tightening supply will keep upward pressure on home values.

In the meantime, Canadian consumers are starting to feel positive about the real estate market again. According to statistics compiled by the Conference Board of Canada, national consumer confidence improved for the second consecutive quarter in the second quarter of 2009, and the balance of sentiment about making major purchases, such as a home, continues to improve.

Interestingly, new construction doesn’t reflect the current demand. Canada Mortgage and Housing Corporation (CMHC) reports that new housing starts in 2009 have fallen sharply from the record pace of recent years. The annual rate of new residential construction was 128,400 units in May, a marked decline from over 200,000 housing starts in each of the last seven consecutive years. Housing starts are expected to improve throughout 2009 and over the next several years to gradually become more closely aligned to demographic demand, which is currently estimated at about 175,000 units per year. In the meantime, there will be less inventory for homebuyers to choose from.

So, what’s the bottom line? Increased affordability due to historically low interest rates, government housing stimulus programs and rising consumer confidence have all contributed to the demand for homes. Meanwhile, supply is dwindling, due to a decreasing number of resale homes coming on the market, strong sales activity, and a marked decrease in new home construction. Continued demand and reducing supply will place more upward pressure on Canadian house prices.

Now that you know the highlights of the national picture, want to know more about what’s happening in your own community? Contact your local Coldwell Banker® real estate representative and get the benefit of some expert advice.


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

Federal Budget initiatives stimulate housing market

The Federal Budget tabled on January 27, 2009 included initiatives that are targeted to the real estate industry, to support home purchase and renovation. Without question, the Federal Government’s plan to stimulate economic growth through home buying initiatives is good news for all Canadians. Real estate is a main foundation of our national economy, and whether or not you may personally be thinking of buying or selling a home, all of us should be pleased to see real estate directly addressed in the new budget.

The increase in the Home Buyers Plan (HBP) maximum from $20,000 to $25,000 which has now been passed into law will help Canadians who want to buy their first home to do it in a financially responsible way. A proposed new First-Time Home Buyers’ Tax Credit would provide up to $750 in tax relief when purchasing a first home. These incentives combined with increased affordability from lower
mortgage rates and declining prices will drive a new buyer into the market.

A short-term Home Renovation incentive which is proposed to run into 2010 would also give a welcome ‘shot in the arm’ to the housing market. Another proposed initiative, a tax credit of up to $1,350 per house for renovations to either homes or cottages will appeal both to sellers getting their home ready for sale and to buyers who may be considering the purchase of a 'fixer-upper'. The short window for this limited time offer would help to create a sense of urgency that now's the time to buy.

As a counterpoint to the government stimulus plan for buyers, there is also demographic pressure creating pent-up demand on the seller side. A Statistics Canada study noted that the leading edge of the giant baby-boom generation is now on the cusp of retirement - with those born in 1946 turning 62 this year, the current average retirement age of Canadians. These people will be moving to downsize or to accommodate changes in their income or lifestyle. All this spells good news not just for the housing industry, but for Canada’s national economy as a whole.

It’s a great time to buy a home in Canada, and these new federal government initiatives are just the icing on the cake. Why not contact your local Coldwell Banker® sales representative and find out more about buying opportunities and incentive programs to help put the dream of home ownership within your reach.


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)

Smartphone users can now view Real Estate listings from 28 countries

Canadian home buyers and sellers can now access listings in 28 countries using their mobile phone devices, thanks to the latest innovation from Coldwell Banker®. A new international Coldwell Banker real estate interface includes listings from throughout Canada and the United States, as well as Australia, Mexico, Italy, Aruba and Colombia. Through this exclusive technology, a first for Canada, international property listings are accessible via a customized platform for iPhoneTM and BlackBerry® users.

When viewed on an iPhone, BlackBerry or other smartphone, the Coldwell Banker flagship Web site, www.coldwellbanker.com has a different look and feel, along with navigation specifically tailored for optimal viewing the mobile device. This includes property listings search and home value estimator functions. When a smartphone user accesses the site through his or her handset, the Coldwell Banker Web site automatically recognizes that it is being accessed by a mobile device and will serve up that specialized interface. Users do not need to download any special software to benefit from this enhancement to the Coldwell Banker mobile technology.

Now consumers in the home buying and selling process can easily search both domestically and internationally using their mobile devices. Now, surfing for listings has gone to a whole new level. In addition, smartphone users looking for real estate listings both domestically and internationally will be able to search for homes and utilize the brand’s home value estimator. In addition, consumers will be able to enter specific search criteria such as city, province or state, and price as well as optional filters including number of bedrooms and bathrooms. When a property is selected, users can view all of the specifications for that home and contact a sales representative directly.

It’s just one more way that Coldwell Banker technology blazes new trails to provide global consumers with listings anytime, anywhere. Want to know more about how to promote your listing or search for homes in exciting new ways? Contact your local Coldwell Banker real estate representative. You’ll be glad you called us first.

iPhone is a registered trademark of Apple Computers, Inc.

BlackBerry®, RIM®, Research In Motion®, SureType® and related trademarks, names and logos are the property of Research In Motion Limited and are registered and/or used in the U.S. and countries around the world. Used under license from Research In Motion Limited.

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For downloadable photos to illustrate this story, visit: http://www.flickr.com/photos/30794625@N05/sets/72157612203017008/


Gary Reed gary@garyreed.org http://www.garyreed.org Coldwell Banker Home & Family Realty Brokerage 1515 Rebecca Street, Unit 21
Oakville, Ontario
Canada
L6L 5G8 1-800-695-7283 905-825-7777 905-825-3593 (Fax)