Housing Market Remains Strong in Oakville for First Quarter 2011
April 28th, 2011 Categories: First Time Buyers, Halton Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Real Estate News
In the first quarter of 2011 the Oakville housing market remained quite healthy. Although the total number of sales was down 10% versus year ago to 754 sales, the average price was up 8% to $612,500 and the median house price edged up 3% t0 $503,500. Part of the reason for the increase in prices despite a drop in sales has been due to less inventory on the market and the maintenance of record low mortgage rates.
The average time that houses are on the market is up to 31 days versus 25 days in the same period a year ago – but this is still very good turnover. The outlook looks good for the second quarter with the Bank of Canada holding the prime rate at 3.00% and 5 year fixed mortagage rates staying below %4.00 with some short-term variable mortgage rates as low as 2.2%.
If you are thinking of buying or selling please give me a call (905.599.3311) and I would be delighted to assist you.
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A Little Help for First Time Home Buyers in Federal Budget 2009
February 1st, 2009 Categories: First Time Buyers, Mortgages, Economics, Finance, Real Estate News
1. Can withdraw up to $25k (formerly $20k) from Your RRSP when buying first home
The maximum amount that can currently be withdrawn from an eligible person’s RRSP under the Home Buyers Plan is $20,000. The Budget proposes that this withdrawal limit be increased to $25,000 for withdrawals made after January 27, 2009.
You are not considered to be a first-time home buyer if, at any time during the period beginning January 1 of the fourth year before the year of the withdrawal and ending 31 days before the withdrawal, you or your spouse or common-law partner owned a home that you occupied as your principal place of residence.
Special rules apply where the home is being acquired for the needs of a disabled person.
Amounts withdrawn must be repaid over a 15-year period, or the unpaid amounts will be included in taxable income.
2) First-Time Home Buyers’ Tax Credit
The Budget proposes a new non-refundable tax credit for first-time home buyers who acquire a qualifying home after January 27, 2009. (The closing date for the purchase of the home must be after that date in order for the tax credit to be available.)
The amount upon which the tax credit is calculated is $5,000, multiplied by the lowest personal income tax rate for the year (15%). The First-Time Home Buyers’ Tax Credit may be claimed in the year in which the home is acquired.
A “qualifying home” is a home which the person or the person’s spouse or common-law partner intends to occupy as their principal place of residence not later than one year after the acquisition.
This new tax credit will also be available for the acquisition of a home acquired after January 27, 2009 either by an individual who is eligible for the Disability Tax Credit (”DTC”) or by an individual for the benefit of a relative who is eligible for the DTC. The home must be acquired to enable the DTC-eligible individual to live in a more accessible dwelling or in an environment better suited to the person’s needs.
The First-Time Home Buyers’ Tax Credit may be claimed either by the person who acquired the home or by his or her spouse or common-law partner. If a qualifying home is purchased jointly, the total amounts claimed by the couple cannot exceed the credit that could be claimed if only one individual had acquired the home.
So First Time Buyers, you are now in a perfect storm, with interest rates at an all time low (prime=3%), a downward adjustment in prices since the economic meltdown in Ocober 08, and a lot of homes on the market.
Give me a call to find out all the relevant information!
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Why Move to Oakville, Milton or Burlington? Halton Region Safest in Greater Toronto Region says Maclean’s Magazine
March 23rd, 2008 Categories: Burlington Beat, First Time Buyers, Halton Real Estate, Oakville Real Estate News, Why Move to Oakville?
“Halton Region is a very safe place to live” says Maclean’s Magazine.
I was doing an open house yesterday afternoon in the new area of Bronte Woods and met two families from GTA land, one from Leaside and another that owned a home in downtown Toronto, both planning to relocate to Oakville, “for lifestyle and affordability”.
This is definitely a growing trend, and not surprising, given the relatively higher price of detached homes in Toronto, high property taxes, and now the new municipal land transfer tax which has placed an added financial burden on home-buyers.
Given the many wonderful benefits of living and raising a family in Halton, we will certainly see this trend continue.
But back to the subject of this post.
I noticed an article in The Oakville Beaver last week which said that Maclean’s Magazine recently profiled Halton as the safest place to live in the Greater Toronto Area.
Maclean’s rankings were based on 2006 per capita crime rates for murder, sexual assault, aggravated assault, robbery, break and enters, and auto theft from the Canadian Centre for Justice Studies.
To read more about why Halton is so safe, click here to access the Oakville Beaver article.
The article also says that Halton is the fourth safest region in Canada. Good news for our families and for the value of real estate in Halton. Let’s keep it that way!
LOOKING TO MOVE TO OAKVILLE, BURLINGTON OR MILTON? IT’S A GOOD DECISION! CALL HILARY AT 905–599–3311 TODAY TO HELP YOU FIND YOUR DREAM HOME.
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Today Bank of Canada Governor Cut Key Interest Rate by 1/2%
March 4th, 2008 Categories: First Time Buyers, Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance, Oakville Real Estate News
He said he would and he did.
Today, Mark Carney, the new Governor for the Bank of Canada announced an interest rate cut of 1/2% bringing the key rate to 3.5%.
He also indicated that further cuts will be needed to deal with a U.S. economy that is experiencing a deeper and more prolonged slowdown than previously projected.
First quarter stats show that Canada’s economy is already experiencing some of the spillover effect of subprime woes in the U.S.
The next meeting is scheduled for April 22nd, at which time there may be further cuts.
Meanwhile, also today, Australia’s central bank raised interest rates to a 12-year high in its fight to contain inflationary pressures in a booming economy fueled by Chinese hunger for resources
The increase in Australia was the second in two months and the 12th since 2002. It bucks the trend among other major central banks, which cut rates as the U.S. subprime meltdown hurt global growth.
“This adjustment was made in order to contain and reduce inflation over the medium term,” Glenn Stevens, governor of the Reserve Bank of Australia, said in a statement after raising the cash rate target 25 basis points to 7.25 percent.
NOTE FROM HILARY: NEED HELP DECIDING ON FINANCING OPTIONS? I’d be happy to explain things.
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TRANSPARENCY IN REAL ESTATE or “Why read my blog?”
March 4th, 2008 Categories: Blogs, Blogging and the Blogosphere, First Time Buyers, Oakville Real Estate News
I went to a listing appointment a few months ago for a couple I had met at the Oakville Centre kiosk. A comment they made got me thinking.
“You seem very nice etc., but the last time we bought and sold, we interviewed 3 agents and picked who we thought would be the best one, but she turned out to be terrible! It was such a bad experience. Now we’re gun-shy.”
Selling or buying a home is a big deal. No doubt about that.
Picking a REALTOR that doesn’t match our expectations or our values or our personality type can be uncomfortable and stressful.
One of the challenges of our generation is we have TOO MANY CHOICES, TOO LITTLE TIME.
One of the reasons I have chosen to write a blog with almost daily postings, is so that people who are buying or selling can use this as a PRE-SELECTION TOOL.
When one writes a lot of stuff over time, one’s true self does get revealed.
What does this REALTOR know? How well does she understand the real estate market? How does she handle situations? What are her values, preferences, interests, viewpoints on real estate and other matters? What are her clients saying about her? What are other agents who comment saying about her? How abreast is she of the latest developments in real estate?
All good questions to which you are likely to find answers right here on this blog.
Then, by the time you pick up the phone to call me, we are both reasonably assured that we are a “good fit”. And that is the best thing for you and for me!
Sometimes when I meet people who have been reading it, they say “ I feel like I already know you.” That’s my goal folks!
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Can’t Afford A Fancy Condo in Florida or Muskoka Cottage? How’s This for a New Trend?
March 4th, 2008 Categories: First Time Buyers, Halton Real Estate, Investing in Real Estate, Lighten Up, Oakville Real Estate News, Real Estate News
Lisa Valade, my mortgage broker, sent me this photo this morning. If you have champagne taste but a beer budget, might be something to think about!
Call Hilary to talk about your dreams for real estate, 905–599–3311.
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“How exactly does bridge financing work?” asks Claire from Oakville
March 3rd, 2008 Categories: First Time Buyers, Investing in Real Estate, Mortgages, Economics, Finance, Oakville Real Estate News
I was showing homes a few days ago to a nice lady named Claire who asked me a question: “How exactly does a bridge work?” She had been a senior bank employee and wanted to know how the numbers worked.
First let me explain why bridge financing may be necessary.
Imagine you’re looking for your next home, and walk into the place of your dreams. The space is tailor-made, the location is perfect, even the price is right. Just one problem: the owner of your dream home has to close the deal within the month, and you can’t sell your current home that quickly. How can you come up with the money to buy the new place, while carrying the old one?
Bridge financing could be your best way to seal the deal. This type of financing is a hefty short-term loan that bridges you over the period when you own and are paying for two homes.
To obtain bridge financing, you have to present your financial institution with two firm offers – one for your current house and one for your next home. You obtain a new mortgage on the new home and carry the two mortgages during the overlap period, before the sale of your current home closes.
Once that happens, you use the proceeds of the sale to pay off the bridge loan, plus interest and costs. Alternatively, you can arrange to repay the bridge loan in six months to a year. This may be useful if you need to save a bit to pay off the bridge in full.
Trouble is, the costs of bridge financing can really add up:
- interest on this type of short-term loan is relatively high, usually the prime rate plus two to five percent.
Set-up fees can be hundreds of dollars - worst-case scenario: the deal for your old home falls apart at the last minute. If that home is collateral for the bridge loan, the bank could seize it
The bottom line is you should only consider a bridge loan if you can afford the interest charges and can pay it off in full as soon as possible. With this type of financing, every single extra day can cost you hundreds or even thousands of dollars.
Having said that, if it is for a few days or you can afford it easily, it is a convenient way to deal with closings that don’t match up exactly.
I attended a mortgage financing seminar recently where the speaker gave the following example:
Hope this helps to clarify things. Best bet is to talk to your REALTOR, bank or mortgage broker before you go out househunting if you think you may want to utilize bridge financing.
CALL HILARY AT 905–599–3311 TO GO LOOKING FOR THAT DREAM HOME!
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“How do I claim the new land transfer tax rebate for first-time buyers?” says Dan from Mississauga
March 3rd, 2008 Categories: First Time Buyers, Mortgages, Economics, Finance, Oakville Real Estate News
I received a call this evening from a gentleman named Dan from Mississauga who had just purchased his first home, a resale.
Dan called me as he had read my post on the new rebate and had been surprised that his lawyer did not know about it. He was wanting to know how to go about claiming it.
LET’S REVIEW THE SITUATION:
1) December 13, 2007, the Ontario government announced a proposed amendment to extend the Land Transfer Tax Refund Program for First-Time Homebuyers to include purchases of resale homes, to a maximum refund of $2000.
2) But the proposed amendment has not yet been passed by the Legislature and needs to receive Royal Assent to become law. It is my understanding that this is a “formality” and that it will likely be passed.
WHAT DO DO BEFORE THE LAW IS PASSED?
1) Pay the land transfer tax upon registration
2) Download the form – Ontario Land Transfer Tax Refund Affidavit for First-Time Purchasers of Eligible Homes (Resale)
3) Submit a copy of the registered instrument on which land transfer tax was paid (in the case of electronic registration, include a copy of the docket summary which relates to the transaction along with a copy of the statement of adjustments)
4) Submit a copy of the agreement of purchase and sale (only those agreements of purchase and sale entered into after December 13, 2007 may qualify)
5) Although eligible first-time buyers of resale homes may apply for the refund once the transaction has closed and the tax has been paid, the ministry would retain the refund requests for processing and would issue refunds after the proposed amendments become law.
6) Certain conditions apply:
- The purchaser must be at least 18 years of age.
- Application for the refund must be made within 18 months after the date of the conveyance or disposition.
- The purchaser must occupy the home as his or her principal residence within 9 months of the date of closing.
- The purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world.
- A spouse of the purchaser cannot have owned a home or had any ownership interest in a home, anywhere in the world while he or she was the purchaser’s spouse
For more information consult the Ministry of Revenue website, click here or call:
Tel.: 905 433-6361
Fax: 905 433-5770
1 800 263-7776
Submissions should be mailed to:
Ministry of Revenue
Land Taxes Section
33 King Street West
PO Box 625
Oshawa ON L1H 8H9
Dan, hope that helps! Having an extra $2,000 back is nice when buying that first home. To keep abreast of real estate news subscribe now to the Oakville Buzz!
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Another Healthy Year Ahead For Canadian Real Estate Say Speakers at Scotiabank Forum
March 1st, 2008 Categories: First Time Buyers, Halton Real Estate, Investing in Real Estate, Latest Real Estate Market News & Stats, Mortgages, Economics, Finance
Scotiabank held a Canadian Real Estate Outlook and Trends Forum 2008 on February 26 last week. Here are quotes from some of the speakers:
“Our expectations are that balanced conditions will prevail throughout 2008, which will mark a return to a more ‘normal’ environment than the highly skewed sellers market that we have experienced over the better part of this decade.
A stumbling American economy will impact us, slowing growth here at home, yet the solid foundation that supports the contemporary Canadian economy should prevent the housing market here from retracting.
New flexible financial products, affordable interest rates and increasing choice in the condominium market across Canada, will continue to attract first-time buyers to real estate – even in high-priced markets. We can also expect to see a broadening buyer pool, as emerging high growth market segments such as single female buyers are anticipated to take advantage of the favourable market conditions.” – Phil Soper, President and CEO Royal LePage
“The Canadian economy is likely to maintain moderate growth momentum this year and next, with the strength of the development boom in the resource-rich regions of the country providing a much needed offset to the increasing drag on our manufacturing centres from the intensifying U.S. slowdown and persistently strong currency. – Aron Gampel, Vice-President and Deputy Chief Economist, Scotiabank
From a supply perspective, most Canadian markets are still in sellers’ territory, in which prices would be expected to rise faster than inflation. Yet, some of the hottest markets in recent years, including Edmonton, have become much better balanced due to a flood of new listings. Based on a combination of job growth, housing supply and affordability, among this year’s potential outperformers are Saskatoon, Regina and Winnipeg in the West, Sudbury, Hamilton and Quebec City in Central Canada, and St. John’s to the East. – Adrienne Warren, Senior Economist, Scotiabank
Hilary’s Note:
The unseasonably cold and snowy weather conditions in Southern Ontario have certainly put a damper on buyers wanting to brave frigid conditions to go house-hunting, while many sellers are waiting for a bit of a thaw before listing. Any day now we will see more of those FOR SALE and SOLD signs going up!
Read also:
Canadian Real Estate Market: A Decade in Review 1997–2007
Bank of Canada Governor Confirms Canadian Interest Rates to Be Cut
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Help with Estimating Home Improvement Costs and Payback on Investment
February 22nd, 2008 Categories: First Time Buyers, Home Maintenance, Investing in Real Estate, Mortgages, Economics, Finance, Oakville Real Estate News
Here are two very common questions that homeowners or homebuyers ask me. I wanted to share some websites that have useful information to address these questions:
1) “I am buying a home. How much will it cost to fix/add/renovate X?”
![739101_low[1]](http://theoakvillebuzz.com/files/2008/02/739101-low1-small1.jpg)
Carson Dunlop just released their 2008 estimate of home improvement costs. This is a useful tool when you are looking at a home to buy and want to estimate how much it will cost to repair, improve or renovate something.
Carson Dunlop updates these costs yearly so they provide a useful gauge of current costs, for everything from installing a new furnace, fixing a roof or adding a fireplace.
Click here to access this guide from the Carson Dunlop website, print out and carry with you when house-shopping.
2) “Will I get my money back if I renovate my kitchen/bathroom/or put in a pool?”
A handy tool for estimating payback on home improvement is a renovator calculator provided by AIC, the Appraisal Institute of Canada.
The Appraisal Institute of Canada has developed RENOVA, an interactive web-based guide to the value of home improvements. RENOVA is designed to give consumers a better idea of the return on investment they can expect for a variety of home improvements. It does this by providing a payback value range derived from the cost of the improvement expressed in dollars.
For example, a homeowner might indicate that he or she is considering spending $10,000 on remodeling the kitchen. The calculator will then provide a payback amount of between x and y dollars for that particular renovation. Homeowners can choose from among the 20 most popular renovation improvements, identified by a survey of AIC members.
LOOKING TO SELL THIS SPRING? Now’s the time to consult a REALTOR, call Hilary at 905–599–3311 for expert guidance and advice about the home-selling process.
Like this post? Read also:
Ten Ways to Keep Heating Costs Down this Winter
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