SEMIDETACHED HOUSE : Advantage and Drawbacks...

Semi-detached homes are quite common in the city of Toronto, especially in the downtown core and surrounding neighbourhoods. This is largely due to the high density in these areas dating back to the late 19th and early 20th centuries.it was typical for downtown Toronto lots to be long and narrow in size making them a perfect fit for the Victorian “semis” we see throughout the city.

Their popularity boils down to price and availability. They are cheaper than detached homes.

According to the Toronto Real Estate Board’s figures for the month of November, the average sold price for a semi-detached home in the 416 area code was $640,208. The sold price for a detached home during that period was a whopping $855,188! Those figures could be argument enough for semis.

BENEFITS:

1. Compare to freehold Town Homes you have one attached
neighbour versus two.

2. you can take advantage of some economies of scale. Your roofs
are attached, you can both contribute for replacement and
negotiate a better deal.

3. Some Semi's is connected by Garage so you are sharing a
driveway : you can share snow clearing duties and if you have
very good relationship with your neighbour you can share
parking.

DRAWBACKS:

There are definitely some drawbacks to owning a semi versus detached, but I assure you that they do not outweigh the benefits of owning a freehold home in the city of Toronto.

1. Depending how your semi is built, noise transfer can be an issue.
Party walls - the common wall both sides share - can be thin and
sometimes don’t run the entire height of a home, leaving a gap in
the attic areas. In addition to noise transfer, the lack of a party
wall in the attic can also have an adverse effect in the event of a
fire.

2.Semi-detached homes can be limiting when it comes to structural
renovations as the party wall once again comes into play.
Extensions and additions have to be carefully considered to make
sure they don’t impact your attached neighbour’s home. Your
renovation plans can also put a strain on your relationship with
you neighbour, so an open line of communication can help
mitigate any potential issues. Make sure you have the proper
permits in place, as a complaint to the city can put your project in
jeopardy.

3.Parking can be tricky. You may be one of the lucky ones with your
own driveway or laneway parking. A good portion of homes in
Toronto have no parking or at best a “mutual” driveway ( a
narrow lane between homes widening out to parking spots in
back) or maybe a right- of-way to pass over to get to your
parking spot.

4. The biggest issue with Semi is that you are stuck with your
neighbour until either you or they move out. So if you’re thinking
of buying a semi, it might be wise to find out something about
the people who live next door.

If your budget allows for it, a detached home is the way to go. But, like I said, owning any freehold home in the city of Toronto can be a very rewarding experience both from a personal and financial perspective, so don’t be discouraged if a detached is out of your reach. You may find yourself quite satisfied with a semi as your final destination or as a stepping stone towards another home in the future.

source : The Globe and Mail.

CANADA's Housing Market - who is buying and where..?

Canada’s housing market took off in 2009, fueled by low interest rates. Housing became a main source of economic growth, with annual resale price increases of as much as 13% in May 2010. Price gains slowed to 3.1% as of October partly because of a new rule that shortened the maximum amortization period on mortgages the government insures to 25 years from 30 years. Bank of Canada Governor Stephen Poloz told lawmakers Nov. 20 he doesn’t see a housing bubble and there are signs of a soft landing as indebted Canadians pull back on spending.

International buyers are shoring up high-end housing in Canada after regulators tightened mortgage rules in 2012 to cool the nation’s booming market.In Vancouver and Toronto, price growth of luxury housing in some neighborhoods also outpaced less costly homes.

TORONTO :

Toronto, the condo boom has lured international buyers, transforming Canada’s largest city. Condo developers in the city led a record number of high-rise projects in North America last year, squeezing out everything from cookie factories to parking lots.

Toronto Housing market is fueled by foreign Investors and first time buyers.

Donald Trump’s 65-story luxury condo tower opened in Yorkville, the city’s high-end shopping district, one condo was listed for sale in late November for $15 million. It boasted five bathrooms, an indoor pool, six balconies, four underground parking spots and a monthly
maintenance fee of $8,224.

VANCOUVER :

In Vancouver, which boasts a rugged Pacific coastline and cultural ties to Asia, 40% of buyers of 1,239 such homes were from aboard.

In Vancouver, where 15% of the population speaks a Chinese dialect as a first language, people from China are the largest group of foreign buyers, according to Sotheby’s survey. They are often buying second homes or investment properties.

While the entry point for a Vancouver single-family luxury home is $2.8 million, the city in late November offered the most expensive home for sale in Canada by its main broker network: a $35 million duplex once inhabited by a Lieutenant Governor. The 12,216-square-foot home a few kilometers south of Stanley Park has nine bedrooms and 13 bathrooms.

High prices in Vancouver, Canada’s third-largest city, are driven more by a land shortage and population growth than foreign investors.

MONTREAL :

Montreal, whose downtown is stocked with cafes and clubs, attracts global buyers with its Old World charm.

Montreal, known for its crumbling water pipes and bridges as much as its cobblestone streets, now stands out for drawing the biggest share of foreign owners. They purchased 49% of the 206 homes worth at least $1 million in the first half of 2013.

International buyers have thrust Montreal, a city sometimes overshadowed by Toronto and Vancouver, into the national spotlight.

The majority of international buyers of large single-family homes in Montreal are from China, Syria, Mexico, Russia and the U.S., they
typically are married with children and buy a home worth at least $3.5 million with 5,000 square feet. About 80% of them earn more than $500,000 a year and work in finance, technology, law or are entrepreneurs.

In Montreal, prices of bungalows of around 1,200 square feet (111 square meters) rose as much as 5.4% in the third quarter from a year ago, Houses of at least 3,000 square feet worth about $2.47 million in the Westmount area gained 16.9% in the same period.

There is absolutely a clear distinction between Toronto and Montreal,” Brosseau said. “Montreal is known for more quaint areas, very European feel, like Old Montreal with the cobblestones, horse and carriages.”

This year, the brokerage was selling a $6 million house in Westmount owned by a Middle Eastern family and four out of the first six potential buyers were also non-Canadians. They appreciate the city’s more relaxed lifestyle. Montreal residents still buy alcohol at any shop — they don’t have to go to a government licensed store.

Montreal's boutiques and bilingual culture made the metropolis more international over Toronto and Vancouver.

source: National post

Five things to do if you are over-extended on your mortgage

Mortgage default may be rare in this country, but nearly 9% of indebted households need 40% or more of their gross income to pay their debt service charges, says the Bank of Canada Financial System Review.

If you can see problems coming, then you can take action to avoid foreclosure, which happens when lenders run out of other alternatives and borrowers can do no more to pay their debts. Here are five options to consider when you are being crushed by mortgage payments:

1. Extend amortization: If the mortgage has been paid down to 10 or 15 years, then extending it to 20 to 25 years or even to 30 years will decrease payments. In a lot of cases this will work, says Elena Jara, director of education for Credit Canada Solutions, a Toronto-based non-profit organization which offers free credit counselling.

2. Seek better terms: You can go for lower interest rates with the same or a different lender but with a potential penalty, says Bill Evans, a mortgage broker with Mortgage Architects in Winnipeg.“If you are having trouble with payments with one lender, another may not want to take you on. But if you can present a case for a new income, you can go to a so-called specialty lender such as Home Trust or Optimum Trust for a fresh look at your problem and potential solutions,” Evans says. “If you just want to alleviate the problem, timing is crucial.”

3. Renew at a floating rate: There is more risk but lower interest cost in floating rate mortgages. If you are on a fixed rate mortgage with relatively high rates and want to go to a lower floating rate, perhaps by taking the mortgage to another lender, then there may be relief when it is time for loan renewal. The present lender may add a penalty, but over time, floating rates and the often attractive rate on a one-year closed loan can offer relief, Mr. Evans says.

4. Sell it and rent: In markets with high home prices as a result of speculative building, absentee owners will often rent at relatively low cost. That makes for good deals for renters.

5. Discuss a consumer proposal: The homeowner can avoid outright bankruptcy and foreclosure of the home by talking to creditors, suggests Bruce Caplan, trustee in bankruptcy for BDO Canada Ltd. in Winnipeg. “The homeowner can make a consumer proposal in which a settlement plan is devised for the creditors. Secured creditors such as the banks or private mortgage lenders can work out new terms such as reduced payments or a payment bridge for a period of time with the homeowner,” he suggests.

courtesy National Post

HST ...

HST rebate rules don’t include all your relatives:

Property Law, by Bob Aaron: Third parties named on title could disqualify your tax break.

Many buyers of new homes and condominiums may be surprised to receive a demand from Canada Revenue Agency (CRA) to repay as much as $24,000 in HST new-home rebates that they received on closing their purchases.

The purchase price of a newly constructed home is subject to HST. Typically, the price in a builder offer assumes that the purchaser is eligible for a rebate of part of the HST, and assigns it back to the builder as required by the purchase agreement.

In order to qualify for the HST rebate, the house or condominium must be acquired for use as the primary place of residence of the titled purchaser or his or her relation.

The tax law defines a relation to mean a blood relationship, including a child and grandchild, a brother or sister, and relationships by marriage or common-law partnerships.

Cousins, aunts, uncles, nephews or nieces, friends and business associates are excluded from eligibility.

if just one of the buyers does not qualify, even as the owner of a one per cent interest in the property, none of the buyers can get the rebate. If they received it on closing, and assigned it back to the builder as is typical, CRA will ask for it to be paid back, with interest. In other words, all of the buyers must qualify, not just most of them. There is no percentage allocation.

The CRA claim arises when a third party, who is not a close relation, has been placed on title at the insistence of a mortgage lender. This often occurs when the buyers themselves do not qualify for a mortgage.

Changing Average size of new GTA homes

In an effort to give homebuyers affordable options within a rising-cost environment, GTA condominium developers have been building smaller units. The average size of a new highrise home at the end of October, 2013 was 818 square feet.

Single-family homes have plenty of space for bedrooms, kitchens, bathrooms, living rooms, dining rooms and laundry facilities. Today’s lowrise home has an average of 876 square feet per person to accommodate those basic functions.

By comparison, those living in highrise units have on average only 287 square feet per person in which to house those same functions. This means more efficiency in the use of space will be required — or perhaps some activities will simply have to occur outside the home, elsewhere in the community.

Why 2013 has been a good year for GTA housing

Last December, many pundits were predicting a big housing slowdown in the GTA as an oversupply of condos in particular, rising interest rates and slowing demand put a dent in sales and prices.

By the end of September, 68,909 new and resale homes had changed hands in the GTA, 1,000 units less than the same period last year. But the first half of October was strong — about 20 per cent higher than a year ago. So, it seems that sales for the year will exceed 2012’s 82,200 units.
Average prices are also almost 5 per cent higher than a year ago and there are still bidding wars in many areas, because there are more buyers than listings.

People have been predicting the real estate market crash in the GTA for the past 13 years. It hasn’t happened yet and won’t happen next year either.

Here’s why this is happening:

1. Low interest rates: Despite the global crisis, financial and civil instability Canada remains an island of stability. Canadian economy will further boost as  economies in the U.S. and European Union continue to improve. Interest rates may rise a little over the coming year, but the moves are unlikely to have a serious impact on the market.

2. Canada’s appeal to immigrants: We continue to be the envy of the world when it comes to quality of life and the fact that so many cultures and communities can live in harmony. That is why more than 150,000 people come to Ontario each year, with the majority to the GTA. They have to live somewhere.

3. Low rental vacancy rates: The Toronto condo market has slowed somewhat, but prices haven’t crashed. The reason is that the vacancy rate for rental condominium units in downtown Toronto is 1.7 per cent. As a result, the average rent for a two-bedroom condominium is about $2,500, which is also the amount an investor needs to carry an average two-bedroom condominium, even if it costs $500,000. If you can carry your condo, you are in no rush to sell or lower your asking price.

Mark Weisleder a Real Estate lawyer thinks making a few changes in Rules and Regulation not only increase the affordability but it will further boost the market.

CMHC should lower their Insurance  premiums. The tighter mortgage rules announced by Ottawa a year ago mean fewer people are qualifying for new homes. Those who do qualify are much less likely to default on their mortgages. This means the CMHC is making more money because it is paying out fewer claims.

Do you know the biggest cost of your new home?

Bryan Tuckey: One-fifth of price of new GTA home goes to government fees, charges.

So what are development charges? Ontario’s cities and towns pass bylaws to set development charges. They use these charges to collect money from new homes and businesses to pay for critical infrastructure: sewers and water pipes, roads, transit, parks and community centres. There is no doubting their importance.

The Development Charges Act are accompanied by a background study, which outlines the estimated amount and location of development within a municipality, and the related calculations of how the new services will accommodate the new population.

In 2012 alone, the industry estimates that more than $1 billion was paid in DCs by new-home owners across the GTA.

DCs and other taxes represent one-fifth of the cost of a home in the GTA, according to a study of six GTA municipalities.

The study involved Toronto, Markham, Oakville, Bradford West Gwillimbury, Ajax and Brampton.

Since 2004, those municipalities have increased DCs between 143 and 357 per cent.

Let’s look at the Town of Oakville, as one example: for a new single-detached home, Oakville charges $23,503 in DCs; Halton Region charges $36,778; Oakville’s school boards charge $4,175 in educational DCs to allow them to acquire land for schools. In total, that new-home owner is paying $64,456 in DCs.

Those DCs are added to new-home owners’ mortgages, and they must pay the interest on those charges for decades.

When DCs are the biggest charge on a home, they pose a threat to the affordability of homes and even the health of the home-building industry.

Owners of resale homes do not have to pay DCs, but owners of new homes and businesses do.

Development Charges are a disincentive to creating new neighbourhoods where new residents and businesses can flourish.

Real Dilemma - Buy First or Sell First..?

Our family is growing and we’re ready to move to a bigger home. Should we buy first or sell first? 

There is no “right” answer to a dilemma like this; it’s a personal decision that should take into account your current circumstances and tolerance for risk. Or, more accurately, which kind of risk you prefer. Buying first increases the risk of higher expenses. Selling first increases the risk of having to live “between homes”.

BUYING FIRST:

The downside to buying first is if you are unable to sell your home fast enough, you will find yourself owning two homes at once. The result is you could be paying two mortgages at the same time, not to mention all the other costs of home ownership. Also, you may have trouble obtaining a mortgage for the new home. Before you make an offer on your new home and potentially find yourself in this situation, carefully weigh whether you’re financially able to pay for two homes at once.

Buying first can make the house hunting experience more enjoyable. Without a closing date looming on your existing home, you’ll have time to wait until the right home comes up for sale. It can also be less stressful knowing that if your offer is unsuccessful, you have time to wait for the next opportunity to come up.

ESCAPE CLAUSE

As a buyer with an existing home to sell, you can protect yourself by adding a condition to any offer you make . In addition to the highly recommended conditions on financing and inspection, you can also make your offer conditional on the sale of your current home which in Real estate language called Escape Clause. That means if you’re unable to sell within a specified period of time, you’re able to back out of the transaction. However, it’s worth pointing out that this condition will likely make your offer less attractive to the seller because of the uncertainty for them.

SELLING FIRST

The biggest benefit of selling first, aside from removing the risk of owning two homes at once, is you’ll know how much money the sale brought in, which will help determine how much you can afford to pay for the next place. As helpful as that is to know, the challenge is that you’ll find yourself in a race against the clock, with your closing date looming. If you’re not careful, you may end up rushing the process and settling for a home that isn’t ideal for you, or paying more than you planned because you feel pressured.

HAVE A CONTINGENCY PLAN

Regardless of whether you buy first or sell first, it’s a good idea to have a contingency plan in case your closing dates don’t align, leaving you with two homes, or no home, for a period of time. If the sale of your home closes first, you might consider a short-term rental or moving in with family or friends. If the purchase of your new home closes first, you might need something called “bridge financing” to cover the down payment and other closing costs until the sale of your current home closes.

The best advice is to speak with your real estate professional. They have the knowledge and experience to help you decide which decision is better suited to your circumstances, and because they won’t be as emotionally invested in the decision as you, they will be able to provide more balance to your decision-making process.

courtesy from toronto star

Land survey outlines what’s really yours

Bob Aaron: Get the details of property you’re buying in all-important survey.Without a land survey home buyers cannot know the full extent and measurements of their title.

A land survey be made a compulsory part of every real estate transaction.A clause to that effect should be a part of the standard form agreement of purchase and sale, or at the very least added to every contract as part of a schedule.

In lay terms, a land survey shows:

1. The size of a parcel of land
2. Its location relative to nearby lands, roads, or geographical
features
3. The location of public and private improvements such as
buildings, pools and fences, relative to the property boundaries,
and
4. The physical features of the property.

Title insurance, as valuable as it is, is no substitute for knowing that the homeowners have valid title to all the land underneath the house, that they own the driveway, and that a utility easement is not running beneath the living room.

In 2002, the law firm Miller Thomson prepared a report for the Alberta Land Surveyor’s Association. It concluded, “Using title insurance as a replacement for a (survey) would be like purchasing theft insurance and then leaving the car door unlocked with the keys under the floor mat. Your car may not be stolen, but you increase the likelihood by acting in a careless manner.”

Sellers often tell their agents that they do not have a survey, when in fact they received one at the time of their purchase. Although using an old survey entails some risk since it is not current, many historical surveys are available online for a modest fee fromwww.landsurveyrecords.com . I think it’s fair to say that a land survey exists for every home built in Ontario in the last 30 or more years, and I have often seen century-old surveys showing the same house that is standing today.

NEW HOME VS RESALE ..WHICH IS BETTER

Question: We’re starting a family and looking to buy our first home. We like the idea of buying a newly-built home, but we’ve been kind of shocked by the prices. We thought a new home a little ways outside the core would be cheaper, but they don’t look cheap to us! What’s up? Is buying an old fixer-upper a better choice?

New Homes:

New home construction often happens in suburban areas that are underdeveloped, therefore can offer more in terms of living space and property size. Urban infill projects are the exception, as they are utilizing prime city space and are limited in size.

The ability to choose custom finishings in a new home appeals to a lot of people. Instead of having to inherit someone else’s choice of flooring, cabinetry and countertops, you have the opportunity to select your own. And who can forget that everything is new, and never been used – including the bathrooms!

Finally, new home purchases come with a warranty. Coverage by province, but typically protect you against delayed closings, defects in construction, basement foundation and much more. In Ontario, Tarion provides all new homes with coverage.

Most builders price condos and homes at anticipated future market value. This means a potential buyer will be paying what the builder thinks the home will be worth when it is completed and occupied.

An additional cost needs to be taken into consideration when contemplating a new home. HST/GST is applied to the price of a new home and can significantly increase your overall costs.

Newer homes can take advantage of advances in materials technology and construction standards.

Resale Homes:

Existing homes tend to be in established neighbourhoods, which can give an accurate sense of what the community will be like to live in. From existing infrastructure, schools and businesses serving the area, you can paint an accurate picture with some diligence.

An existing community will have a record of sales performance that can be tracked through historical data. This allows you to better determine value when deciding location and which home to purchase.

Many older homes have been built to last with sturdy materials and fine workmanship.

 Resale homes are exempt from the tax(HST/GST).

Buying an older home that requires some TLC can allow you to unlock some of the hidden potential of that home, whether it be for use and functionality or value down the road.

Resale home prices tends to be cheaper than builder's price.

Whatever decision you make, both options have their pros and cons. Once you’ve determined which considerations are most important to you, your choice starts become clearer.

CLOSING COSTS

I’m buying my first home. What are some of the costs I should plan for, besides the purchase price?

For  first-time home buyers it’s so important to understand the full cost of buying a property.

1. Deposit : Require at the time of offer. This deposit is part of the
                   Down payment.

2. Home Inspection : A home inspection is the most widely
                 recognized pre-closing cost. It may be seen as an optional
                 expense but it’s also a smart one is because a qualified
                 home inspector, engineer or contractor can identify
                 underlying problems with a home’s major systems, like
                 heating and electrical. in a rural area, you should also have
                 the septic system inspected and water testing conducted
                 for the good of your health.

3. Appraisal : Some lender may require, as a condition of financing,
                that you pay for an appraisal or survey of the property to
                ensure the home’s value matches its sale price.

4. Land Transfer Tax :  A land transfer tax is up to 2% of the
                purchase price. In Toronto, an additional tax of up to 2 %
                applies. As a first-time buyer, you should talk with your real
                estate agent about whether you are eligible for a refund of
                the land transfer tax.

5.Legal fees : Your lawyer will conduct a title search on the home to
                 ensure the seller can actually sell the property and that
                 there are no liens against it. They will also register the deed
                 and mortgage for you.

6. Refund to Seller : You may also need to refund the seller for pre-
                paid expenses — property taxes, maintenance fees,
                utilities, hot water heater rental fees.

7. Insurance Policies : Three different insurance policies round out the
               closing expenses.
               1. mortgage insurance: if your down payment is less than
               20 per cent of the sale price.
               2. Title Insurance : will protect you against title fraud, errors
               in surveys and encroachment issues with neighbours.
               3. Home Insurance : You need to get Home Insurance
               before the closing which will depends on what type of
               insurance you are choosing.

8. Moving Expenses : Some gas, hydro and water companies charge
              a hook-up fee and you’ll need to pay if you want to forward
              your mail from your old address.


9. Renovation or Upgrades : Some house are in move-in condition ,
              some may need little TLC. dated kitchen and broken fence.
              A fresh coat of paint, some window coverings, or perhaps a
              shiny new fridge and stove also add up.

 Understanding the full cost of buying a home will help to budget for these final touches. 

FINAL RESTING PLACE

Buy now or you could end up in the suburbs until the end of time.

It sounds like your typical real estate pitch but this one is for your final piece of land, your burial plot. Prices are rising fast and what used to cost $200 to $400 in the 1970s in a central area of Toronto might be closer to $18,000 to $24,000 now.

Your final resting place is not unlike any other property choice, desirable locations are going to cost you more money. You can spend as little as $1,600 in Toronto for a plot and funeral, if you keep it simple and are cremated, or blow $50,000 on a plot and a swanky affair.

Plots:

Prime real estate in Toronto’s core can run close $15,000, for an adult grave although most locations are stackable so that’s the price for a couple. There may be an extra fee when the second person is buried.

Head to the greater Toronto area suburbs and that same adult grave is closer to $2,000

Crypt:

Finding one in the city is tough enough. Price comes down to what “floor” you’re on. They stack them and the second level — eye level — can cost you the most. Those spots are easily $45,000 for a couple. Once again, the suburban option will save you money with prices close to half that.

Niches:

An indoor single niche for cremated ashes can cost about $7,000 in Toronto’s core with outdoor niche’s available for half that.
Back in the suburbs, that single indoor niche is less than $2,000.
It’s important to note all these prices are guaranteed for eternity, if you pay up front.

Mausoleum

At the Mount Pleasant Group of Cemeteries, a private family mausoleum goes for $500,000

A funeral can easily run $10,000 to $12,000 on average and with many operators demanding 50% up front.

Selling your own home

I can’t decide whether I should sell my home myself or hire a real estate agent. What are the pros and cons of each?

Before you decide to sell your own home, consider how much time and expertise it will take. Also, know that commission rates with real estate agents are negotiable.

When the time comes to put your home on the market, it can be tempting to handle the transaction yourself, referred to as a FSBO — For Sale By Owner. After all, who knows your home better than you?

Going the FSBO route means you’ll be responsible for everything : — 1. Setting the right price,
2. Advertising your property,
3.Making yourself available to let interested buyers in to take a look,
4.Reviewing offers,
5.Negotiating terms and
6.Managing the paperwork once an agreement is reached.

One of the challenges you will face is getting the attention of homebuyers, who largely turn to the Multiple Listing Service (MLS) to identify available homes that meet their needs. Only registered real estate professionals have the ability to post listings on MLS. Some real estate brokerages now offer a “mere posting” service, where your property is listed on MLS for a fee, but leaves you responsible for all other facets of the transaction.

Even if you don’t use a real estate professional to help you sell your home, you may still end up paying commission — to the buyer’s representative. That’s because in a traditional sale, the commission for both representatives is typically paid by the seller. As a seller in a FSBO scenario, it’s your choice whether you agree to pay a buyer representative’s commission. If you don’t, the buyer would have to pay and may see it as a disincentive to purchasing your home.

There are significant benefits to working with a registered real estate agent, including valuable consumer protection. The There are three pillars of that protection are knowledge, professional standards and insurance.

Registered real estate professionals must complete ongoing, mandatory continuing education. That means they’ll be fully prepared to help you navigate the selling process, including determining how best to market and show your home to buyers, deciphering paperwork and negotiating on price and terms.

Your real estate professional is also required to uphold professional standards that emphasize fairness, honesty and integrity, and follow rules and regulations protecting consumers. In the rare instance that something goes wrong and you want to complain, RECO will investigate and take steps to hold the real estate professional accountable for their actions.

The final pillar of protection, insurance, has two facets:
1. Deposit insurance provides the buyer with peace of mind knowing their payment will be held in trust and insured against fraud, insolvency or misappropriation.
2. Real estate professionals must hold errors and omissions insurance to pay for damages and legal costs arising from claims related to a real estate transaction.

 Working with a real estate professional, however, can save you time and effort, and affords you protections that don’t exist in the FSBO scenario.

Convenince/ Variety Store for Sale - $125000

Seller is highly Motivated

What's going to happen to the Gardiner?

Gardiner Expressway repairs will slow traffic for years There are currently eight projects underway along the 18-kilometre highway: more than $100 million worth of fixes from repairing off-ramps and medians to replacing of 800 metres of actual elevated roadway. These are not scheduled for completion until late 2015. In the meantime, city engineers are working with traffic experts to ease the pain for drivers by staggering lane closures, limiting construction on surrounding roads and modifying traffic signals on streets in the vicinity of the Gardiner in the event of a backup.

The replacement of 800 metres of deck from Strachan Ave. to Spadina Ave., by far the most significant project planned to date, will be carried out in two 400-metre phases. Apart from a break for the Pan-Am Games, traffic will be reduced by one lane in each direction along the busy western stretch from early next year until the end of 2015. Meanwhile, from April to December 2014, three bridges in the western portion of the Gardiner will be refurbished, closing a lane in each direction at those locations. Buckley predicts slowdowns resulting from these projects will persuade many drivers to switch to public transit or stagger their work hours so as to avoid rush-hour. His advice to those with no other option but to brave the Gardiner: “Be patient.” COURTSEY "Toronto star"

How " FREE" is Credit Card Balance protection insurance..

Interesting Read

Balance protection insurance is a profit centre for the banks. They find it an easy sell because Canadians are risk averse and worry about paying their credit card bills in a crisis. Most banks charge you for insurance only when you carry a balance from the previous month. But a few, such as TD, charge fees each month.

TD spokeswoman Huma Pabani said customers are told over the phone that the insurance premiums are based on the average daily balance. After verbally agreeing, a customer gets a letter and certificate of insurance in the mail, showing how premiums are calculated.
sales pitch to buy insurance to protect ones balance if one became sick or lost their job is always misinformed about the ‘fee-free’ coverage. There is always a premium charge if you used the card. 
The trend is caused by lower demand for classic credit cards and transfers of balances to lower-cost lines of credit.When it comes to your credit card limit, banks used to raise it without asking and notify you after the fact. Now they are required to get your consent before increasing the limit.

Why do property taxes vary so widely in the city?

Question: Why do taxes very so widely in the city? It is obvious even from the examples in the Globe and Mail that market value based on sales has little relationship to assessments. One is not allowed to compare to other areas when appealing.

Property taxes in the city of Toronto are calculated by multiplying your home’s MPAC (Municipal Property Assessment Corporation) assessment value by the City’s predetermined tax rate and the province’s education rate.

For the 2013 tax year, the rate determined is approximately 0.75 percent of your property’s assessed value. This rate is broken down into two parts: about 0.54 percent for the city tax rate, and another 0.21 percent for the province’s education tax rate. So for a house assessed by MPAC at $450,000, the annual property taxes for this year would be about $3,375.

“The residential tax rate includes a component for the municipal portion of taxes, and a component for the education portion of taxes,” he said. “The municipal portion of the tax rate is set by Council each year, depending on budgetary requirements. Once Council has established its annual budget, the municipal tax rate for each class is determined in an amount that will raise the required amount to fund the various operating programs, services, and capital requirements of the City. This includes amounts needed for all City programs, including police, fire and emergency services, parks and recreation, transportation, libraries, transit, social assistance programs and housing, etc. The education portion of the tax rate is set by the Province of Ontario, in order to raise amounts needed for education purposes across the Province.”

“The residential tax rate applies to all residential property within the City of Toronto, regardless of location and regardless of the type of residential dwelling type. Therefore, with a single residential tax rate, the only variation between the property taxes paid for a property is the Current Value Assessment of the property.”

How your home’s value is assessed by MPAC. Similar to methods used by many appraisers, there are several factors in determining property value. Physical factors such as age of building, construction quality, finishes, basement, garages, pools and more help to determine the value of the structure. Environmental factors also come into play when determining value; location, lot size, traffic patterns, and surrounding green space to name a few.

you see little correlation between market value and assessed values of a property. I believe this is not the case, there is definitely a relationship between the two, but Toronto’s hot market often highlighted by bidding wars can drastically increase a property’s market value. It should be noted, your home’s assessed value can be lower than market value and this may have a favorable effect on your annual property tax.

Of course, your property value could be assessed for more than you think it is worth, which would lead to an increase in property taxes. MPAC allows you to appeal the assessment through a “Request for Reconsideration” (RFR) free of charge. The process allows you to access information on comparables in your immediate neighbourhood in order to help you justify your appeal.  Request for Reconsideration, the tools and resources are readily available, making the process less cumbersome than you might think it to be.

The last part of question deals with comparing properties in different neighbourhoods.Environmental factors are considered when determining the value of a property – one of which is location. For example, all things considered, a home in Rosedale will always be worth more than a home in a less desirable neighbourhood.

Courtsey : from Globe ans Mail

TRENDS AT A GLANCE - CANADIAN REAL ESTATE MARKET -CMHC

Key factors and their effects on housing starts

Mortgage rates: Mortgage rates are expected to increase gradually and steadily, over the forecast horizon. However, they will remain low by historical standards. Current mortgage rates are supportive of housing demand.

Employment :The labour market has gotten off to a slower than expected start in 2013, with employment growing in the first six months at a little over half the rate in 2011 and 2012. Nevertheless, employment is expected to improve during the course of the year and is forecast to grow 1.4% in both 2013 and 2014, which will support Canada’s housing sector.

Income: Growth in incomes is expected to continue, albeit at a moderate pace, on account of modest economic growth in Canada and global markets. As a result, income growth will remain supportive of housing demand over the forecast horizon.

Net migration: Canada’s economy is expected to continue to perform well, relative to its peer countries. Canada should, therefore, continue to attract a high level of immigrants (net international migration) over the forecast horizon, which will support housing demand in the medium to long term.

Population:  Lower population growth among the 25 to 34 year age group is expected to lead to a slight moderation in demand from first-time home buyers this year and over the longer term. Furthermore, Canada’s low birth rate should lessen the demand for additional housing stock in the medium and longer term. Population aging, however, is likely to impact the type and tenure of housing demanded.

Resale market:  Resale market conditions for 2013 and 2014 are expected to be balanced in most local markets. Nevertheless, some price momentum will see the average MLS® price grow roughly in line with inflation in 2013 and 2014.

Vacancy rates:  The average vacancy rates of purpose-built rental apartments across Canada’s metropolitan centres is expected to decline slightly, to 2.5 per cent, in 2013 and remain at that level in 2014. Lower vacancy rates for purpose-built rental apartments over the forecast horizon are expected to help support multiple-unit housing construction, particularly in 2014, through the expansion of the rental condominium market.

Stock of new and unoccupied units: The stock of unabsorbed new housing units has been stable in the second quarter of 2013, indicating continued strength in demand for newly completed homes. In addition, the ratio of the stock of unabsorbed new units to population, a simple gauge to assess potential over-building is close to the historical average. Nevertheless, should the Inventory increase inordinately , builders may delay or reduce the size of some housing projects. This could lead to sharper - than -expected moderation.

My city Toronto and me as A REALTOR

From dinner gatherings to doctor visits, at virtually every point in our daily lives, we as REALTORS® find ourselves engaged in casual conversation about whether now is a good time to buy or sell a home.

My response to this question is an unequivocal, “Yes!”

Our city’s cultural and economic diversity are key factors that attract people from around the world, newcomers are also drawn by Toronto’s outstanding international reputation. According to a study released recently by the international research firm GfK, Toronto ranks eighth on an index that measures the image of cities around the world.

A recent report by National Bank Financial noted that as a result of immigration, our country’s population of 22- to 44-year-olds grew in 2012 at its fastest rate in more than two decades, increasing by 1.1 per cent. This demographic decreased everywhere else in the developed world. Representing 55 per cent of all immigrants to Canada, it is a very significant age group, as it includes individuals who, in their prime home buying years, contribute to the demand for housing throughout the Greater Toronto Area.

Based on more than 5,000 interviews with adults around the world, the study gauges such factors as a city’s international status, physical aspects, amenities, affordable accommodations, people, attractions, and economic and educational opportunities.

Toronto’s eighth place finish also represents the most significant move within the report’s top 10 cities, climbing from the 13th spot when the study was previously conducted in 2011. 

As Torontonians, we should be extremely proud that our city’s image ranks amongst such world centres as London; Sydney; Paris; New York; Rome; Washington, D.C.; and Los Angeles.

Toronto scored highest with respect to friendliness and safety in this study, ranking second and fourth in the world respectively. I believe that Greater Toronto REALTORS® are an excellent representation of these attributes, as we strive to be our most congenial and courteous while interacting with people from all walks of life on a daily basis.

As REALTORS®, I gain great fulfillment from working cooperatively with  other Realtors and from helping our clients realize the dream of home ownership.

Courtsey from President -Toronto Real estate Board

Convenience And Variety Store for sale in Prime Location

Excellent Established Convenience And Dollar Store Business In Busy Area Near Schools And High Rise Buildings,Lots Of Walk-In Customers. High Profit Margin Business

. If You Are Feeling Creative You Have Possibility To Add More Such As Lotto, Western Union Money Transfer.

This Business Has Monthly Income Of $ 28000 Appx And Expenses Are Only Around $ 4000-5000.

Rent Is $ 3,160/Month. Heat &

Hydro Separate

Full Training Will Be Provided,Buyer Can Verify Sale By Working In Store.

Canadian Mortgage and You.

Being a Realtor, I am always facinated by the articles on Finance. I read this article in Toronto Star showing us how to save on your  Mortgage and  few other facts on Mortgage.

If you are First time buyer , buying your next house or buying a real estate as investment is always good know that how you can save on your mortgage.

Do you know that when it comes to find the best rate First time buyer gets the best rate and option as they shopped around, have tight budgets and so fight for every basis point.

The economists found that people who switch banks get a better deal than existing customers, because new customers offer the banks an opportunity to sell more products. So when it comes to mortgage loyalty does not pay well.

The best way to figure out  about your choices are: to compare prices and features, read the fine print on contracts and keep an eye on developments in the news. In this respect, the Internet has been a great leveler. The study also found that mortgage brokers find the best rates . Mortgage brokers are paid by the lender so they aren’t confined to one lender’s products. Their business is very competitive, so the pressure to find the very best rates is high. The study noted that brokers “are a significant factor driving discounts,” reducing the cost of a mortgage on average by 17.5 basis points.

When it comes to saving on your mortgage, there are lots of ways to cut your interest costs, such as
1. Making pre-payments 2. Shopping around at renewal time. 3. Borrowing as little as you can
4. Making as large a down payment as possible.

For instance, say you’re purchasing a home for $200,000.
With a down payment of 20%, or $40,000,
your monthly mortgage payment would be $930.57,
Your interest cost will be $119,170, at an average interest rate of 5 %, amortized over 25 years.

But, if you can put down 25 %, or $50,000, your monthly payment would be $872.41 and your total interest cost would be $111,722 — a savings of about $7,400.

Most mortgages offer pre-payment privileges that let you pay an extra 10 to 25%, per payment or per year. Those payments go directly to the principal and can take years off your
mortgage.

Simply changing from monthly payments to accelerated bi-weekly payments will pay off the mortgage about four years sooner, with an overall savings of more than $25,000 in interest.

If your mortgage is up for renewal ,get the current lower rate, but don’t  change your payment.
For example, if you’re renewing a mortgage from five years ago and your rate is 5.75% and your payment on a $200,000 mortgage was around $1,200, at today’s rates, it would drop to about $900. So If you can keep making the $1,200 payment, every payment, you’ll be whacking an extra $300 off your mortgage balance. You could literally pay off yr mortagage earlier than u imagine.

 Financial planning experts say that, when it comes to saving for retirement, it’s best to start early and save often, even in small amounts.The same principle applies to money that you owe for 25 or 30 years,That extra payment goes to the principal ,that extra dollar gets applied to it’s the last dollar.
What happens when you have closed fix rate mortgage and you wants early exit from your mortgage.

There are few things we should know about Mortgage penalty.

If interest rates go up after you take out a closed mortgage, you can usually get out early by paying a penalty of three months’ interest. Your lender can sign up a new borrower at a higher rate.

But if interest rates go down, you have to pay a penalty that is much higher than three months’ interest. It is based on the interest rate differential (IRD) between your initial rate and the current rate until the end of the term.

An IRD penalty can be a shocker, since your lender wants compensation for having to break your higher-rate mortgage and sign up a new borrower at a lower rate. Lenders calculate these penalties as they wish. There isn’t a formula that everyone has to follow. If you received any rate discounts or cashback rewards when you took out the mortgage, you may have to pay them back on your way out the door. This, too, inflates your penalty.

It is best to find out if the lender is giving you a discount that will be thrown into the IRD calculation when you get out of a mortgage prematurely and  how the penalty is calculated. If
you see anything that says you must pay for the discount or some other extra cost. then you must choose what is best for you.

So choosing the  low rates is not the only criterion when choosing a lender but also to keep in mind what is the option for early payment  of mortgage or exit prematurely should be
also the question you should be asking your lender.

Choose wisely and live happily after that..

Pushpa Dhawan as your Neighbouhood Realtor