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?

Property Tax Assessment Appeals

Recently homeowners in Toronto have received their property tax assessments in the mail and I have been asked for advice on what they can do if they feel the assessment is not an accurate reflection of the value of their home. You can appeal the assessment, and I myself have had success in lowering my property taxes by doing so. This may not be the case for everyone, but it might be something you are interested in pursuing nonetheless.

Metropolitan Property Tax Consultants (416-482-3000) are one of the companies in Toronto that provide such a service. They will charge you half of the amount of the savings on your property taxes, and in the case that there are no savings, there is no charge.

By lowering your property taxes you may not only save yourself money, but also increase the appeal of a property you have listed or are thinking of listing.

Save Money? And Help the Environment? Tell Me More!

Whether you have just bought a home and wish to upgrade appliances or you are looking to increase the value of your home before a sale or you simply wish to conserve water and reduce monthly bills…I have some good news for you!

On a daily basis each of the 2.9 million people living in Toronto require an average of 253 litres of residential water use per day…that’s about 77 million toilet flushes EVERY DAY! In an effort to curb water usage, the City of Toronto has a variety of programs and resources, from cash back rebates to retrofit packages, available to the public.

As an incentive to homeowners to replace inefficient models, the City is offering cash rebates on 2 water saving appliances. If you are thinking of replacing your toilet or washing machine you may be eligible to receive the rebate in addition to saving thousands of litres of water every year.

- Ultra low-flow toilets use only 6 litres of water per flush, where a typical model uses up to 20. They work just as efficiently, and savings will add up on your monthly water bills. Rebates of up to $75 are available.
- City-selected, high-efficiency front loading clothes washers use 40% less water and 60 % less energy. Washers are easily recognized by a sticker indicating they are approved by the City of Toronto and sold in local stores. Rebates of up to $60 are available.

Click here to find out if you qualify for these rebates or to find out more about the programs.

If you are not ready to make a large purchase, there are still many things you can do to help ease water usage, including picking up an indoor water efficiency retrofit kit. It costs only $10 and includes items such as a high efficiency shower head, kitchen swivel aerator, 2 bathroom aerators, installation instructions and more! Your water consumption and bills will both be reduced, and who doesn’t want to save a little? Click here to find out where these kits are available.

Money saving tips are always useful, but ones that benefit the environment as well? It’s a win/win situation!

Preparing Your Home Before Winter Arrives

With the temperatures this past long weekend hovering in the low 20's, it almost seems absurd to be preparing your home for the winter, right? Not so! This is the perfect time to do the cleaning and maintenence that will help keep your heating bills down in the following months, as well as prolong the life of your home and appliances.

Here are some simple things you can do:

1. Furnance maintenence includes:
- Clean or replace filters.
- If forced air, have ducts vacuumed.
- Bleed air from water radiators, if necessary.

2. Make sure smoke alarms & carbon monoxide detectors are in working order, with new batteries.

3. Humidity levels will drop in the winter months, so you will want to be sure you have a humidifier of some sort. If you have a humidifier on your furnace, check that it is scale free: either clean it with a de-scaler or purchase a new filter.
If you are humidifying your living space with a portable unit, make sure you do some research before purchasing. The larger the humidifier, the more maintenence required, but you must also keep in mind the size of the rooms, and also the energy efficiency of the unit.

4. Give your home a really thorough cleaning, so when you seal out the cold, you aren't trapping in all the dust that has blown in with the autumn winds!

5. This is the time for a switch of wardrobe as well: wash your summer clothes before you pack them away, and place some cedar balls in your drawers, and cedar blocks in your closets to protect your knitwear from moths (and avoid the chemicals and strong odours of moth balls!)

6. Keep out the drafts!!!

Doors:
- Install a sweep along the bottoms of your doors, the rubber edge will seal out the wind.
- Apply "sticky foam" on the edges of the door trim
- As extra assurance, install weather stripping to the outside edge of the doorway.

Windows:
Replace window screens with storm windows, then prepare to keep out the drafts:
- One option is removable caulking (be sure to follow directions exactly so as not to damage the window panes or walls).
-Removable draft seal works in much the same way, and is just peeled off like tape in the spring.
- The old standard plastic (just blow-dry to apply) works also.
Heavy drapes can help keep the cold at bay...and remember not to seal *all* the windows, as some fresh air is good to let in once in awhile.

7. Check chimneys for obstructions.

8. Clear eavestroughs of debris.

9. Drain and store outdoor hoses. Close the valve and drain the exterior faucet.

Even these few simple tasks will help winterize your home: keeping you comfortable, lowering monthly bills and maintaining the value of a homeowner's most valuable asset!

Take advantage of these crisp autumn days to talk a walk through the neighbourhood, enjoy the leaves changing colours, and maybe stop into some of the many Toronto homes with an open house!

Canada's Real Estate Trends

In May, Scotia Bank released the new housing trends for the 1st quarter of 2008. New figures show that the real estate market is cooling down after seeing phenomenal numbers in 2007. Resale of homes have fallen 15% which is down from last summer and the average resale home price in Canada had its first quarterly decline in the first quarter of 2008.

Canada also saw a decline in residential building permits in comparison to last year and the inventory of unsold new homes are trending higher. Some factors causing the decline in these first quarter numbers include the relentless weather that we experienced throughout the winter season along with limited demand for the increased supply.

Financial experts expect a 15% decrease in overall sales compared to 2007. However, with that being said they do expect the average price of a home will increase by approximately 5%. It is safe to say that that the Canadian home market is still in a good position since homes are not overvalued and home equity as a share of real estate assets is near a record high.

Even though experts are expecting a bit of a slump our mortgage quality is still sound. Lending institutions have maintained conservative loan criteria and have introduced a new range of products such as no down payment, longer amortization periods, and adjustable mortgage rates. In my next post we will talk about some of these new mortgage products that are available to home buyers.

Top 4 Features to look for in a Neighbourhood

Now that you’re in the market for buying a home, you may or may not have decided what type of neighbourhood you would like to live in. Choosing a neighbourhood is not just simply choosing a “nice area” based on a location that you prefer but buyers should also be looking for neighbourhoods with sustainable features when purchasing their home.

The Canada Home and Mortgage Corporation defines sustainable features as “an area that meets your needs while protecting the environment and leaving an affordable legacy.”[1] These types of features in an area can help to improve the quality of life as well as being a safe and pleasant place to live. These neighbourhoods can also include the following.

1. They provide close, convenient access to amenities such as work, schools, shopping, etc...This allows for people who are in these neighbourhoods to spend less time in cars driving and more time either commuting by public transportation or walking. This is a two pronged benefit because you are not only lowering the emissions levels being sent out into our environment, but also taking the time to invest in your health by walking or biking wherever possible.

2. They offer a variety of house types that give you the option of establishing a foundation within a neighbourhood that allows you to build roots, but also being an area that is able to move through life’s changes with you. For instance, you can find a neighbourhood that will allow you to purchase a home that you can start a family in. Then, as your family changes you can still stay within that same neighbourhood and find a home that best suits your changing needs.

3. They provide a safe and friendly atmosphere. No one wants to be stuck in a neighbourhood where they do not feel comfortable walking to the store. If you are going to build roots in this neighbourhood you want it to be somewhere that you will enjoy being.

4. It offers the best value for your dollar not just within the physical property but this refers back to the neighbourhood being easily accessible. Nowadays, most families have two cars for their household. However, if you are able to get around without the use of a second car then this cuts back on your costs for fuel and maintenance for two cars and therefore giving you a higher ROI.

As advantageous as sustainable features are, this option for choosing a neighbourhood is not for everyone. It isn’t advisable to look for a neighbourhood with these features if you are a home buyer who doesn’t want a smaller home to maintain or if you don’t mind commuting in traffic. However, with the benefits of sustainable features why wouldn’t you incorporate this into your home search?

You can find a list of Canadian cities that offer neighbourhoods with these important features at http://www.cmhc-schl.gc.ca/en/index.html.

[1] Thinking of Moving to A Different Home – www.chmc-schl.gc.ca/en/index.html

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!!!!

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