New Years Resolution? Are you kidding ME?

Well it’s that time of the year again. The time when we all try to make dramatic changes in our lives, only to discover “it ain’t happening”.  We are encouraged by society to come up with “New Years Resolutions”, which regrettably for most results in

New Beginning, New Life

disappointments rather than accomplishments.

Study after study reveals that the thought of making year end resolutions is,  in and of itself a guarantee for failure more often than not. How are you doing? Just one week into the new year have you begun to make the dramatic changes in you life? Are you close to the path of total change?  Studies also show that the intent people have is quite noble but possibly more than what we can actually handle.

The hit TV show “The Biggest Loser” clearly demonstrates that change requires a total mind transformation.  It’s not about making change because we now”feel like it”. It’s about knowing that we can do anything we put my minds to because “we were all born to win”    ( Zig Ziglar).  It’s about forgetting the past and realizing that if certain change is not made,  we may not get a second chance.

Our typical New Years resolutions include: joining the gym, make more money, quit smoking, investing in real estate… all in the hopes of becoming a better person or improving your situation.

If genuine change is what we seek then we must alter our mindset by eliminating all of our negative thoughts of the past and replacing them with positive life changing thoughts such as: “I can do anything I want, if I really want it badly”.

New Years resolutions? How about New Years Goals that will make you the kind of person, the kind of dad, the kind of husband, the kind of friend that you know you can be.  Lose weight, quite smoking, you bet… but all for the right reasons.

The new YOU, the new LIFE… starts now.

Real Estate: The Provincial Land Transfer Tax

Not always a shocker but rather a despised tax grab is the sentiment of the Land Transfer Tax (LTT) by most home buyers wanting to live the Canadian Dream, the purchase of a home, a roof over their head. This dreaded tax is probably the most significant upfront cost which a home buyer is faced with in the home buying process.  In many cases, the LLT becomes somewhat prohibitive in the decision-making process. In some of these cases it may mean not being able to purchase a home comfortably or not being able to purchase one at all.

The Provincial LLT is based on the purchase price or the fair market value of the property.  The Provincial Government  initiated the Current Value Assessment process whereby they re-assess the value of homes every 4 years, the next taking place in 2012.  Given the spike in home values over the last 10 years, the province deferred the increase over a period of the 4 years following the assessment date.  That is to say the increase for the homeowner is presented gradually over the three years following the assessment to avoid the shock of a massive tax bill.  From the government’s perspective, the  benefit of the LTT extends to the community and the local economy making the tax not just about the homeowner. The benefits to the homeowner is about meeting their needs and their expectations  with respect to the services they expect and deserve.

There is a rebate provided to First Time Buyers in the amount of $2000 which is equal to Provincial LTT payable on property worth $227,500.  There is also a Toronto LTT rebate to first time buyers to a max of $3725

How to calculate the Provincial LTT: Based on purchase price

1] 0.5% on first $55,000 plus

2] 1% on amount between $55,000 and $250,000 plus

3] 1.5% on amount between $250,000 and $400,000 plus

4] 2% on amount over $400,000

Example: Purchase of a $500,000 home

 1] On first $55K …………………………………$ 275.00

2] On next $195K……………………………….$1950.00

3] On next $150K……………………………….$2250.00

4] On balance $100K…………………………..$2000.00

Total payable for Provincial LTT on $500K property is: $6475.00

If you are buying within the City of Toronto you will be hit with the current Toronto LTT which with in the example above will add another $5725 to your closing costs.

Selling? 5 Critical Elements of a Sale

There are 5 critical elements of a sale that each homeowner should be aware of:

ASKING PRICE: This is the most important factor in the sale of your home.  Your Realtor will provide your home’s exposure to a large segment of potential buyers.  The actual market value is determined by what a Buyer is willing to pay for the home based on recent sales of similar homes in the area.

PROPERTY LOCATION: Proximity to area amenities and schools are typical buyer concerns.  In addition things such as: street traffic, area demographics,  public transportation and accessibility to major highways will play a key role into a buyers decision making process.  A study of current buying trends reveals that, if applicable schools for the children account for almost 40% of the buying process.

They are asking WHAT?

PROPERTY CONDITION: The old expression of “never judge a book by it’s cover” does not hold ground in the home buying phenomena. Buyers look at the structural and mechanical integrity, as well as the upkeep and cosmetic appeal of a property.  Buyers have been known to refuse to enter a house as they approach it just because of the appearance from the bottom of the driveway.  In the interior, neutral decor, including floors, wall coverings, appliances and fixtures offers the broadest appeal to buyers.

MARKET CONDITIONS: Influencing factors in the minds of the buyer include: prevailing interest rates (currently not an issue), current local market activities, unemployment rates, job security and global activities.

CONTRACT TERMS: The terms of a sale can make or break the deal.  Things like: house sale contingencies (buyers having to sell their property before finalizing the home purchase), financing, property inspections, closing date, exclusions of accessories or fixtures, surveys…

Keeping in mind the above factors will help to make your home more saleable and stress free.

Listing? What You Should Know

As the summer draws to a close and the fall season approaches, many homeowners will begin to discuss, if they have not already done so the idea of selling their homes and making that all important move before the Christmas break.   As the fall season produces the second best Real Estate market, there are many things sellers should know regarding the Listing/Selling process.

In the next few weeks, articles will be posted on this blog to assist sellers with the involved process and to provide some helpful ideas to make the process as stress free as possible. Keeping in mind that your home is probably, by far your biggest investment, your nest egg for retirement, getting it right the first time can save you time, money and headaches.

We will address such issues as: Critical Elements of a Sale, Setting the Price, Signing a Listing Agreement, Major Elements of an Offer, Preparing your Home For Showings, Offers, Legal Advice and the Close.

Along with these crucial areas, I will share with you examples and case studies which may prove helpful to bring it all together.

In the meantime, should you have any concerns or issues regarding the process which you may be facing,  please do not hesitate to send me a quick email at: dominic@distinctgmac.ca

Fall Real Estate Market Quickly Approaching

I can’t help but wonder how quickly time is moving forward.  It seemed  just yesterday our kids finished school for the year and were beginning to enjoy the summer.  Wow was I shocked to hear that the CNE was about to re open for another season this week.

Also quickly approaching is the fall Real Estate market.  Within the last couple of months we have seen an increase in the number of homes listed on the Toronto Multiple Listing Service (MLS).    With every indication that interest rates may not be going up anytime soon,  in fact conditions pointing to decreasing mortgage rates (see below) in the foreseeable future, the market is poised for healthy activity with more homes  needed to cope with the up and coming Fall demand.

July reported sales of 7,922  through the TorontoMLS® system, represented a 23 per cent increase over July 2010.  The current inventory figure for existing homes for sale on MLS sits at 17,546 units which is well below normal.  At present we have just over 2 months supply of inventory heading in to our second busiest season.  Homeowners thinking of selling in the very near future will undoubtedly be faced with increased demand from potential multiple buyers.

Stay tuned for developing events.

TERM            RATES 6 Month 4.45% 1 Year 2.75% 2 Year 3.30% 3 Year 3.29% 4 Year 3.34% 5 Year 3.44% 7 Year 4.69% 10 Year 4.89% Variable Rate 2.20% Prime Rate 3.00%

New MLS Real Estate Districts

Image via Wikipedia

The Toronto Real Estate Board has just implemented new sweeping changes to the way it labels certain geographical areas of the GTA.  The biggest changes occurred in the 905 area code.

These changes will now assist real estate agents in locating homes for buyers in the areas they, the buyers are interested in.

As of July 5^th, 2011, the MLS system will refer to community or neighbourhood names instead of districts.  Their names and their boundaries have been provided by government bodies with the help from Real Estate agents.

The following map shows the names of the communities in Vaughan

July Home Sales Up 23%

Image by pixieclipx via Flickr

Fresh off the Press

The Toronto Real Estate Board just released the resale numbers for July and the verdict is: UP.  There were a total of 7922 sales for the month which represents and increase of 23% over July of 2010.  The number of sales for the year stands at 55,863 which is down by only 1.3% over the same period last year.  At it’s present rate, the forecast total home sales for 2011 puts it around 90,000 units.

The average selling price for homes in July stood at $459,122 which is up almost 10% over July of 2010 with the average number at $418,675.  The president of the Toronto Real Estate Board suggested that the greatest rebound in the market was in the “condominium apartment segment”.  There appears to still be the desire to locate in the city where much needed amenities have increase substantially over the last 5-10 years.  This development has enticed single female buyers to consider the downtown core as their home.  Also penetrating the downtown condo market are the generation X and Y population.