The Effects of the Land Transfer Tax on Real Estate Sales in Toronto

You’ve probably seen the news lately: real estate sales down by 50% compared to this time last year! Although there are many things to take into consideration like the changing economy and hesitation on behalf of Canadians while watching the real estate market in the states, there are still more sides of the story…

Take, for example, the effects of the Land Transfer Tax, a levy of up to 2% in addition to the province’s taxes, which took effect Feb. 1, 2008.

The C.D. Howe study, “Sand in the Gears”, reported a drop in the number of houses sold in Toronto from February, when the tax was implemented, until August, when the real estate market began to falter. Comparing Toronto sales with those in the suburbs, there has been a 16% decrease in sales and a 1.5% reduction in house prices.

City Councillor Shelley Carroll, the mayor's budget chief, is predicting that the effects felt by the land transfer tax should stabilize in a year or so, but added that the market was artificially inflated when some buyers hurried to purchase their property before it took effect.

None of us has a crystal ball to look into the future, but it will be interesting to see what the real estate numbers in February 2009 will look like. A little less askew?

A New Year, A Fresh Start!

A new year is a great time to make a fresh new start, and what better place to start than by giving your living space a fresh new start. January seems to be a time to sit back and look over all the festive accumulations/great boxing day deals and say, “What do I do to make my living space more liveable…or saleable??” (These handy hints will also make any future moves so much easier)


· Start with removing all the festive decorations. For easy storage and an even easier way to find them again next time you need them, store them in see-thru plastic storage containers. They will stack nicely on top of one another, and you will be able to see the items packed in each container. Once the decorations are removed you will find it less overwhelming to deal with the rest of the house.

· During this time of year, gifts can add to the clutter. A good rule of thumb is out with the old, in with the new. When you have a new item to bring into the house: be it an appliance, an item of clothing or piece of furniture, don’t keep the old one *and* the new…do you really need 3 electric can openers?

· If these replaced items have only been gently used don’t just toss them in the garbage. Instead donate them to a local charity or you can post them for sale on a website such as craigslist.org or have a garage sale. In the spring contact me, Elli Davis, regarding free signs to advertise your garage sale!

· Label boxes for “Donations” and/or “Garage Sale” and designate a corner of one room for these boxes. As you gather items from the other rooms it will make your donation drop off one simple trip, and your garage sale more organized.

· A simple tip to help decluttering is to tackle just a small area and move on…don’t think of the daunting task of the whole house. Pick one room to start with, one day sort through the surface areas: countertops, floors, etc., the next day choose a cupboard or two, the next day a couple of drawers…you get the idea! Decide which items you really truly want to keep, which won’t be used for awhile and need to be stored and which are on their way out the door: donation, sale or garbage.

· When you choose items to be stored: mark the box with the date. If you have not needed to open that box to retrieve the items inside in over a year, drop that box off at a donation centre without opening it. If you didn’t need them in a year, you won’t need them.

· Finally: once you have done this great job weeding out unnecessary items and organizing what has been left…resist the temptation to bring more clutter into your home! Every time you go to make a purchase, stop and think, really think, “Do I need this, or do I just *want* it?” and remind yourself of all the effort you just went to to minimize the amount of clutter in your home…is that fourth electric can opener really worth all the aggravation??


These tips can be used at any time of year, but sometimes the inspiration of a new year is a helpful nudge in the right direction.

25 Years Strong!!!

As hard as it is for me to believe, this year will mark my 25th year providing real estate services. It’s been a fantastic journey and I have enjoyed every moment of it.

As a school teacher, I always had a strong interest in Real Estate. As I moved to sales with Mary Kay Cosmetics, my fervor for Real Estate grew and it was then that I decided to pursue a career in the hobby that I loved.

Since then, I have had the honour of holding esteemed titles such as; #1 Agent in Canada for Royal LePage for 12 consecutive years and #1 Agent in Toronto for the last 21 years; both of which, I am extremely proud of as it is a true reflection of recognition for hard work and dedication. Every sale still brings about the same adrenaline rush it did 25 years ago when I sold my first condo and it is this excitement that keeps me going.

All in all when it boils down to it, it’s not just the passion for my job that drives me, it’s all the experiences both good and bad and the people that I’ve had the pleasure to assist and of some of those professional relationships have evolved great friendships.

Here’s to 25 years strong…cheers!!!!

Want to ask Elli a question? Post a question or comment in the blog.