HST - Harmonized taxes has several impacts. The main impact will be on new homes which is currently subject to GST unlike resale homes. Currently on new homes, buyers are paying reduced 3.2 GST but next year will need to pay an additional 8% in taxes and HST on all closing costs which is a significant burden especially on the group of first time buyers.
The biggest question I get - how will HST impact me in a resale home.
The home will not be subject to HST but the burden will be with the closing costs - legal fees, moving costs, home inspections, title insurance, home insurance premiums, and Realtor commissions. When some buyers move into their new home they want to renovate, purchase new appliances, furniture, etc. HST will be a burden on the home buyers that are already struggling to get in an already expensive market.
The housing market will be one to watch next year for sure with the HST coming into play and increased interest rates.
Monday, October 19, 2009
Friday, September 25, 2009
Seller's Market
In recent months we have seen the real estate market pick up significantly, back to the point a year ago when talking about housing activity. Realtors are still waiting for the market to pick up more but will the market return to where it was a 2 or 3 years ago? That is a question many having been asking.
So is it a Seller's market? Most homes that Realtors are dealing with now of days are entering multiple offers. What is that a function of? Consumer confidence is picking up but it hasn't returned to where it was prior to the recession. Well interest rates have bottomed out and the only way they can go is up. That means the first time buyers that are watching the market are out shopping and home owners that want a larger home are out. Right depending on the neighborhood, part of the city and part of the Country, demand is outweighing supply. The supply is low and homes aren't being listed as frequently as they were in the past due to consumer confidence. Demand>Supply=Seller's Market.
There are several questions to ask -
How long will this last?
Will the housing activity pick up even more?
After government pulls out incentives will housing market drop again in 2011?
So is it a Seller's market? Most homes that Realtors are dealing with now of days are entering multiple offers. What is that a function of? Consumer confidence is picking up but it hasn't returned to where it was prior to the recession. Well interest rates have bottomed out and the only way they can go is up. That means the first time buyers that are watching the market are out shopping and home owners that want a larger home are out. Right depending on the neighborhood, part of the city and part of the Country, demand is outweighing supply. The supply is low and homes aren't being listed as frequently as they were in the past due to consumer confidence. Demand>Supply=Seller's Market.
There are several questions to ask -
How long will this last?
Will the housing activity pick up even more?
After government pulls out incentives will housing market drop again in 2011?
Power of Sales
Are power of sales really a deal?
Most of the TV we listen to is usually US based or if it is Canadian news they are talking about what is happening in the States. Thus many people feel that getting a power of sale is a deal. Florida homes as low as $20K, Detroit homes even lower....
Here the laws are different. In a power of sale the bank has to do proper due diligence to ensure the price of the home is reflective of market value. Why? Simple - they need to collect money back to pay off debts including other creditors that are secured against the security and remaining money is given to the owners. If the bank sells the property for less then market value, the owners can go after the bank.
The bank typically out sources power of sales to Lawyers to work with Realtors that are responsible to do the proper due diligence - market evaluations, show that home was marketed effectively, report on number of visits, review of offers, and the list goes on.
The second draw back to a power of sale is that the offers typically take longer to review so leaves opportunity for other offers to come in raising the price of the property. There are several people in the market that have been condition to feel that power of sales are deals and strictly look for power of sales and these individuals are typically the ones that raise the price on these properties.
Also when looking at power of sales, one has to note the home is as is - no appliances, possibly no fixtures or window coverings. There are no representations or warranties made by the bank about anything on the property. And most importantly offers that are typically accepted are without conditions. If you are planning to purchase the home and are purchasing as is then it is recommended if you are serious that you do a home inspection prior to submitting an offer. You may be incurring the cost of a home inspection but you have the reassurance about the possible purchase and that you are not buying a bigger problem.
A final note - if considering a power of sale make sure you get a lawyer to review the agreement of purchase and sale prior to submitting the offer as the law firm representing the bank typically makes several adjustments to the agreement. In a recent deal we encountered a situation with GST where it was in addition to the price of the home. Realtors typically only see GST is on new homes and a significantly renovated homes. In this case GST was applicable as the home was registered to a business which had tax implications.
Are Power of Sales still a deal in your mind?
Most of the TV we listen to is usually US based or if it is Canadian news they are talking about what is happening in the States. Thus many people feel that getting a power of sale is a deal. Florida homes as low as $20K, Detroit homes even lower....
Here the laws are different. In a power of sale the bank has to do proper due diligence to ensure the price of the home is reflective of market value. Why? Simple - they need to collect money back to pay off debts including other creditors that are secured against the security and remaining money is given to the owners. If the bank sells the property for less then market value, the owners can go after the bank.
The bank typically out sources power of sales to Lawyers to work with Realtors that are responsible to do the proper due diligence - market evaluations, show that home was marketed effectively, report on number of visits, review of offers, and the list goes on.
The second draw back to a power of sale is that the offers typically take longer to review so leaves opportunity for other offers to come in raising the price of the property. There are several people in the market that have been condition to feel that power of sales are deals and strictly look for power of sales and these individuals are typically the ones that raise the price on these properties.
Also when looking at power of sales, one has to note the home is as is - no appliances, possibly no fixtures or window coverings. There are no representations or warranties made by the bank about anything on the property. And most importantly offers that are typically accepted are without conditions. If you are planning to purchase the home and are purchasing as is then it is recommended if you are serious that you do a home inspection prior to submitting an offer. You may be incurring the cost of a home inspection but you have the reassurance about the possible purchase and that you are not buying a bigger problem.
A final note - if considering a power of sale make sure you get a lawyer to review the agreement of purchase and sale prior to submitting the offer as the law firm representing the bank typically makes several adjustments to the agreement. In a recent deal we encountered a situation with GST where it was in addition to the price of the home. Realtors typically only see GST is on new homes and a significantly renovated homes. In this case GST was applicable as the home was registered to a business which had tax implications.
Are Power of Sales still a deal in your mind?
Sunday, September 20, 2009
Just Listed
Just Listed
47 Germain Cres, Markham, ON (N1707138)
Fully upgraded, gorgeous family home with 4 bedrooms and 4 baths on a large fenced lot. House is approx 3000 sq ft and 4 years old.
This home has everything one needs and wants:
* pot lights throughout main floor
* $$$ spent on upgraded kitchen and top of the line appliances
* wide open entrance way to open curved staircase and hallway
* large master bedroom with sitting area
* master en suite has large soaker tub and separate upgraded glass shower
This home is a must see - just move in and enjoy. Close to all amenities - schools, shopping, 407, hospital, conservation area and golf.
Contact myself for details P: 905 471-2000 or email: sonia_kal@rogers.com
Wednesday, September 2, 2009
Real Estate Market
The latest August report shows that the housing market has returned to pre-recession activity and pricing.
This is great news for current home owners thinking of selling but is concerning for first time home buyers. Interest rates are going to slowly start inching up raising the cost of being a home owner even more for first time home owners. If you are renting or considering buying my question is what is holding you back? I strongly suggest that you speak to a mortgage broker see how much you qualify for and to a Realtor to see what's available in that price range. You will be saving yourself thousands of dollars and will be grateful you go this advice later in life.
Home owners thinking of selling should consider doing the same as it depends where you want to move and the type of home you are looking for. It's all a demand and supply game. If you are looking at a larger detached home you can wait to sell and net out making a nice profit. If you are looking at smaller detached, semi's or town's - you are competing with new home owners which drive up the price per square footage.
Bottom line thinking of selling or buying your first home - speak to someone you trust to get the right advice and knowledge.
This is great news for current home owners thinking of selling but is concerning for first time home buyers. Interest rates are going to slowly start inching up raising the cost of being a home owner even more for first time home owners. If you are renting or considering buying my question is what is holding you back? I strongly suggest that you speak to a mortgage broker see how much you qualify for and to a Realtor to see what's available in that price range. You will be saving yourself thousands of dollars and will be grateful you go this advice later in life.
Home owners thinking of selling should consider doing the same as it depends where you want to move and the type of home you are looking for. It's all a demand and supply game. If you are looking at a larger detached home you can wait to sell and net out making a nice profit. If you are looking at smaller detached, semi's or town's - you are competing with new home owners which drive up the price per square footage.
Bottom line thinking of selling or buying your first home - speak to someone you trust to get the right advice and knowledge.
"But I can't afford to buy...."
Many people would like to start building equity in their own home, but are held back by concerns about cost. In fact, the Canada Mortgage & Housing Corporation estimates that 40 per cent of renters in Canada today can afford to buy their own home.
If affordable housing options are available to nearly half of all renters, what's holding them back?
Sometimes the media reports of housing prices can give a misleading impression about the cost of home-ownership. The media typically reports median or average prices without explaining the distribution of home prices behind those figures.
A median is that price at which half the homes sold for more while half sold for less. That means that there are just as many homes that sold at a price lower than the median than those that sold at prices higher than the median price. The median price doesn't give any indication of the spread of these prices. Many properties are sold for much lower - or higher, of course - than the median price.
An average price is the total dollar volume of homes sold for a particular period, divided by the
number of units sold. Average prices are typically reported for the sales activity in a given area for a given month, quarter or year, and provide a snapshot of past activity. Average prices of properties sold in the past give only a limited indication of what housing inventory for sale is priced at today. An understanding of the housing in a particular community is needed to put average prices into perspective. For example, sales of a new sub-division or townhouse project of larger, upscale homes at higher prices will bring the overall average price up, giving the impression that all housing prices have risen. In reality, prices for the older, smaller housing units in the community may not have changed, or they may have even dropped.
If you are renting or a first time buyer contact a Realtor or myself to find out more information.
My contact info - skalra@sutton.com
If affordable housing options are available to nearly half of all renters, what's holding them back?
Sometimes the media reports of housing prices can give a misleading impression about the cost of home-ownership. The media typically reports median or average prices without explaining the distribution of home prices behind those figures.
A median is that price at which half the homes sold for more while half sold for less. That means that there are just as many homes that sold at a price lower than the median than those that sold at prices higher than the median price. The median price doesn't give any indication of the spread of these prices. Many properties are sold for much lower - or higher, of course - than the median price.
An average price is the total dollar volume of homes sold for a particular period, divided by the
number of units sold. Average prices are typically reported for the sales activity in a given area for a given month, quarter or year, and provide a snapshot of past activity. Average prices of properties sold in the past give only a limited indication of what housing inventory for sale is priced at today. An understanding of the housing in a particular community is needed to put average prices into perspective. For example, sales of a new sub-division or townhouse project of larger, upscale homes at higher prices will bring the overall average price up, giving the impression that all housing prices have risen. In reality, prices for the older, smaller housing units in the community may not have changed, or they may have even dropped.
If you are renting or a first time buyer contact a Realtor or myself to find out more information.
My contact info - skalra@sutton.com
Thursday, August 20, 2009
School Rankings
When helping couples look for homes the ones with kids ask about schools. Schools play a large part in one's relocation decision. Factors include:
Location
Ranking
Bus availabilty
Before and After School Care
Several of the factors one has to contact the local school but regarding ranking there are 2 annual reports that rank the schools on how the kids fared on a skill testing examination.
The 2 annual reports are:
1) EQAO - http://www.eqao.com/results/?Lang=E
2) Fraser Institute report - http://www.fraserinstitute.org/reportcards/schoolperformance/ontario.htm
Take a look at these reports to see how your child's school is doing or if you are considering moving to a new subdivision. This report should be looked at if you have kids or not since it may impact the resale of your home.
Location
Ranking
Bus availabilty
Before and After School Care
Several of the factors one has to contact the local school but regarding ranking there are 2 annual reports that rank the schools on how the kids fared on a skill testing examination.
The 2 annual reports are:
1) EQAO - http://www.eqao.com/results/?Lang=E
2) Fraser Institute report - http://www.fraserinstitute.org/reportcards/schoolperformance/ontario.htm
Take a look at these reports to see how your child's school is doing or if you are considering moving to a new subdivision. This report should be looked at if you have kids or not since it may impact the resale of your home.
Sunday, August 16, 2009
Cost of Building a New Home or Renovating
Depending on what suits your needs - everyone has different living preferences. Some people love the city life and other's suburban life. Then there are those that love the country. I must say the perfect balance for me would be to have 2 places - one in the city and one in the country and depending on how I feel, decide to stay at either one.
Country living is something I get a lot of questions about now a days as people don't want to be driving for hours to go to the cottage. They rather own land in the country areas surrounding the city, for example North Pickering.
A couple last week asked me about the cost of building a new home on vacant land or renovating and existing old home, so I did some research and wanted to share it with everyone.
The cost of building a new home or adding in Ontario ranges from $125-140/sq ft. Now keep in mind that this varies on what you exactly want to get done. If you are doing everything high end then the costs can go upwards to $400/sq ft.
In my research I found a very useful website - http://www.ontariocontractors.com/. This website has a cost estimate calculator which basis the cost on square footage and type of home. It also has a directory of contractors and allows you to tender your project on the site and have contractors bid on your project.
I also felt this was very useful information for people that want to get involved in the flipping business. Flipping is becoming a common thing that one sees happening in Markham Village right now - Buy an old run down home, upgrade or expand the home and resale!
Country living is something I get a lot of questions about now a days as people don't want to be driving for hours to go to the cottage. They rather own land in the country areas surrounding the city, for example North Pickering.
A couple last week asked me about the cost of building a new home on vacant land or renovating and existing old home, so I did some research and wanted to share it with everyone.
The cost of building a new home or adding in Ontario ranges from $125-140/sq ft. Now keep in mind that this varies on what you exactly want to get done. If you are doing everything high end then the costs can go upwards to $400/sq ft.
In my research I found a very useful website - http://www.ontariocontractors.com/. This website has a cost estimate calculator which basis the cost on square footage and type of home. It also has a directory of contractors and allows you to tender your project on the site and have contractors bid on your project.
I also felt this was very useful information for people that want to get involved in the flipping business. Flipping is becoming a common thing that one sees happening in Markham Village right now - Buy an old run down home, upgrade or expand the home and resale!
Summer + Sir Gawaine
Summer is finally here! I can't believe we have had our first nice weekend and it's the middle of August.
This weekend I was doing an open house on both Saturday and Sunday on Sir Gawaine in Markham Village. The house is a detached backslit with thousands spent on upgrades. It's in a very desirable area and the visitor traffic this week proved it. The real estate market has really picked up and is remaining strong with no signs of slowing down!
This weekend I was doing an open house on both Saturday and Sunday on Sir Gawaine in Markham Village. The house is a detached backslit with thousands spent on upgrades. It's in a very desirable area and the visitor traffic this week proved it. The real estate market has really picked up and is remaining strong with no signs of slowing down!
Friday, July 31, 2009
Markham Fun
We really enjoy living in Markham and I always share this with all my real estate clients. With the weather getting better (FINALLY) we were able to take my son yesterday for ice cream and then to Milne Park where he insisted on chasing after the Geese in the park! Poor Geese but he was very polite and continuously said "bye ducky" when we were leaving the park.
Today we will be heading to the zoo to see the new polar bear exhibit that opened yesterday! He will be so excited.
Being in Markham as we are in close proximity to several activities for the kids.
This weekend I will be doing 2 open houses if anyone is in the area or looking in the Markham/Pickering area:
Saturday 2-4pm 16 Sir Gawaine Pl, Markham - $499K
Sunday 2-4pm 3895 Kinsale Rd, Pickering -$339K
Today we will be heading to the zoo to see the new polar bear exhibit that opened yesterday! He will be so excited.
Being in Markham as we are in close proximity to several activities for the kids.
This weekend I will be doing 2 open houses if anyone is in the area or looking in the Markham/Pickering area:
Saturday 2-4pm 16 Sir Gawaine Pl, Markham - $499K
Sunday 2-4pm 3895 Kinsale Rd, Pickering -$339K
Monday, July 27, 2009
First Time Buyers
Did you know?
1) You qualify for a maximum of $2000 in Land Transfer Tax (HBTC)
2) You can use RRSP's for your downpayment interest free, tax free - a maximum of $25K per person payable over 15 years (HBP)
Interest rates are starting to inch up and house prices are starting to pick up - Now is the right time to be investing! Invest for yourself or rental - let the rent pay your mortgage! Real Estate is best and safest investment.
1) You qualify for a maximum of $2000 in Land Transfer Tax (HBTC)
2) You can use RRSP's for your downpayment interest free, tax free - a maximum of $25K per person payable over 15 years (HBP)
Interest rates are starting to inch up and house prices are starting to pick up - Now is the right time to be investing! Invest for yourself or rental - let the rent pay your mortgage! Real Estate is best and safest investment.
Launch
Hello out there!
This is my official first blog. I have been specializing in Real Estate throughout the Greater Toronto Area ranging from Oakville/Mississauga to Markham/Ajax. Real Estate is my passion and I enjoy helping families finding their dream home. First time buyers are also a specialty of mine as I enjoy helping new home owners make one of their biggest decisions in their life.
Real Estate has to be looked at more then purchasing or selling a home but an investment. Real Estate can guarantee you a larger return then the stock market and at a lower risk. We have all seen the stock market go up and down over the past couple years and is still in that state. In Canada we have been fortunate inlike the Americans as our government has made proper decisions to protect home owners. Unlike the American house crisis, the housing market in Canada has remained stable and has began to pick up again. Even though our real estate market slowed down the house prices didn't fall. The slow down was a result of the American media making Canadian consumers cautious.
With interest rates starting to inch up and the regain in consumer confidence we are seeing the Real Estate market starting to pick up and push the house prices up once again. In Markham and across Ontario we are seeing multi offers again.
In the past month I was very fortunate to work with 4 first time buyers and found them homes of which they are all proud of and excited to start their lives in. Congratulations to David, Fonis, Mishele, Bobbie.
This is my official first blog. I have been specializing in Real Estate throughout the Greater Toronto Area ranging from Oakville/Mississauga to Markham/Ajax. Real Estate is my passion and I enjoy helping families finding their dream home. First time buyers are also a specialty of mine as I enjoy helping new home owners make one of their biggest decisions in their life.
Real Estate has to be looked at more then purchasing or selling a home but an investment. Real Estate can guarantee you a larger return then the stock market and at a lower risk. We have all seen the stock market go up and down over the past couple years and is still in that state. In Canada we have been fortunate inlike the Americans as our government has made proper decisions to protect home owners. Unlike the American house crisis, the housing market in Canada has remained stable and has began to pick up again. Even though our real estate market slowed down the house prices didn't fall. The slow down was a result of the American media making Canadian consumers cautious.
With interest rates starting to inch up and the regain in consumer confidence we are seeing the Real Estate market starting to pick up and push the house prices up once again. In Markham and across Ontario we are seeing multi offers again.
In the past month I was very fortunate to work with 4 first time buyers and found them homes of which they are all proud of and excited to start their lives in. Congratulations to David, Fonis, Mishele, Bobbie.
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