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Where are my recycling bins?!?

September 23, 2010 (Thursday) By
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Where are my bins?!?bins

So, you just moved into your new house, and no sign of blue bins, green bin, or any other colour bin. It happens, sellers often take them along.

What to do? Call 311.

That’s the quick number for the Region of Halton. They will, in turn, direct you to the Municipal Waste Facility on Hwy 25 (Bronte Rd) between Oakville and Milton where you can pick up (for FREE):

  • Two new Blue Bins
  • One new Green Bin
  • One new Kitchen Catcher (that little bin for your compostable items that hides under the sink)
  • A handy dandy calendar with all sorts of good info, including a pickup schedule, so you know what to put out when (including that nasty couch in the basement, and old appliances)

If you haven’t moved, but your bin has gone AWOL, don’t fret, call the Region, you’re eligible to get a one new blue bin each year.

If you need to buy more, a blue bin is $5 from the Region, and a green bin is $15 (about half of what the big box home improvement stores charge)

For more information, go to the Region’s website at http://www.halton.ca/ or http://www.halton.ca/living_in_halton/recycling_waste/

My wife and I just moved, those are our new set of bins in the backseat of my car. No more free dinners for the neighbourhood raccoons.

Alexx

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Filed Under: Ask the Agent, For Buyers, General Information, Homeowner Tips

Ask the Agent: This Month’s Question

September 16, 2010 (Thursday) By

I’m thinking of buying my first home. What extra expenses should I factor in to the total cost?

Moving Expenses: Truck rentals, time off of work and, of course, – gasoline … moving takes money whether you do it yourself or pay others to do it for you so plan accordingly.

Maintenance: From lawn care to fixing a door knob, owning your own home involves maintenance. Don’t be caught by surprise because this is one area where expenses can add up fast. Set aside funds for a lawn service and pool maintenance, or plan to purchase the tools required to do it yourself, including lawnmowers, garden and hand tools plus other general maintenance items.

Utilities & Communication: New home buyers are frequently surprised by the cost of utilities since many apartments include basics like cable, trash, or water. Set aside enough funds for deposits and the first payment for utilities, phone, cable and other necessities.

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Ask the Agent: This Month’s Question

August 18, 2010 (Wednesday) By

Are there any quick fixes I can use to add to my home’s curb appeal?

You want to do everything you can to lead your guests (and potential buyers) into your home. Make it clear where the entrance is, by emphasizing it, using some of the techniques in this article.

Accessorize: Make sure all your door hardware is new or looks new. You can buy matching hardware cheaply. Alternatively, give what you already have a good polish. Invest in a new house number and mailbox that complement the rest of your hardware.

The door: Make sure the door looks bright and fresh. Paint it to match the rest of the trim on your house, and keep it clean of dirty rain splashes.

Plants: Use containers or hanging baskets to mark the way to your home.

Lighting: Consider adding attractive lights to emphasize the entrance and make it more attractive at night.

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Ask the Agent: This Month’s Question

July 15, 2010 (Thursday) By

I’m thinking of buying a condo. What advice would you give?

Fees & Service Charges: Condo associations typically charge a variety of fees to cover everything from modest maintenance charges to extravagant luxury amenities. Understand what is included, anticipated large expenditures, and out of the ordinary expenses likely to be incurred.

Management and Operational Efficiency: Spend time speaking with current residents, review community literature, and take a careful look around the area to get a general “feel” for how things are maintained.

Finances and Reserve Funds: Perform due diligence on the finances and reserve funds of the condo association to make sure their problem doesn’t become your own. Pay special attention to large numbers of vacant units that could eventually result in higher per owner premiums to compensate for loss of revenue.

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Ask the Agent: This Month’s Question

June 17, 2010 (Thursday) By

I enjoy doing projects outside. What work can I do to make my home more attractive to potential buyers?

Fencing: Families with pets, young children or those just seeking a little additional privacy will appreciate the functionality and appearance of an attractive sturdy fence.

Outdoor Sanctuary: With a little creativity and a few hundred dollars, it is easy to turn a problem spot into the center of attention. Get creative with an easy to install garden pond, butterfly or flower garden, wind chime and outdoor seating. Consider adding a decorative fire-pit to encourage family time on those warm evenings.

Update the Paint: Indoors or outdoors, painting is a simple way to give your home a fresh new look. If it has been more than five years since your home has had a fresh coat, make it a priority to paint. Just be sure to keep all your paint colours neutral.

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Ask the Agent: For a resale home, does the seller need to pay HST on commissions even if the home was sold before July 1st but closing later, say Aug/Sept?

June 17, 2010 (Thursday) By

GST/HST APPLICABLE ON REAL ESTATE SERVICES PROVIDED

The Government of Canada and the Government of Ontario have signed a Comprehensive Integrated Tax Coordination Agreement for the implementation of HST in Ontario. The HST will come into effect in Ontario on July 1, 2010, at a rate of 13%, consisting of a 5% federal part (equivalent to the existing GST) and an 8% provincial part. While most GST registered entities can claim the GST/HST paid on services as an Input Tax Credit, no such relief exists when the client is an end consumer. Therefore, during the transitional period, it is important to be as accurate as possible when assessing which tax rate applies to services for the end consumer who is most sensitive to the incremental 8% cost.

The following are the key rules that will determine how the GST/HST will apply to commissions charged for real estate services.

  1. Services performed, due and payable prior to July 1, 2010 would only be subject to GST. For example, listing taken, offer accepted and transaction closed before to July 1, 2010.
  2. Services performed after June 30, 2010 would be subject to HST, For example, listing taken, offer accepted and transaction closed after June 30, 2010.
  3. Services started prior to July 1, 2010 and completed after June 30, 2010 might be exempted from HST based on a transitional rule. The transitional rule states that if 90% or more of the work is completed prior to July 1, 2010, then only GST would apply. Conversely, if 10% or less of the services is performed before July 1, 2010, the HST will apply. it is our opinion that transactions with a firm Agreement of Purchase and Sale or a firm Agreement to Lease dated prior to July 1, 2010, are effectively more than 90% complete and therefore, subject to only the GST rate of 5%.
  4. Services started prior to July 1, 2010 and completed after June 30, 2010 that do not satisfy the 90% transitional rule requirement for HST exemption will be subject to a combination of GST and HST in proportion to the work performed.

CRA’s official response to us is as follows:

“Whether HST applies on an amount is a question of fact and determined on a case by case basis. REALTORS® often charge a service fee for arranging for the sale of a vendor’s property. A common question from REAL TORS® is how they determine the portion of their services performed on or after July 1, 2010. For example, a REALTOR® and a vendor enter into a listing agreement on May 1, 2010 (the listing date) and the property is conditionally sold on July 15, 2010 (i.e., a firm sale date) but the sale does not become final until August 15, 2010 (i.e., the closing date). The portion of a REALTOR®’s services performed on or after July 1, 2010 may not necessarily be determined by the firm sale date or the closing date. Realtors should determine the portion of their services performed on or after July 1, 2010 in a fair and reasonable manner.”

Another example:

  • Client signed listing agreement on March 22, 2010
  • Offer was conditionally accepted March 24, 2010
  • Conditions were removed and the deal firmed up by March 29, 2010
  • Closing is July 15, 2010

The determination based on our checklist, and point 3 above,  is that this deal was 95% complete prior to the July 1 deadline. The remaining 5% being left for closing day activities (from a Realtor®’s perspective, lawyers are a different matter)

This client would only be charged GST on the commission payable.

Another example:

  • Client signed listing on June 15, 2010
  • Offer signed and accepted on June 30, 2010
  • Conditions removed by July 8, 2010
  • Closing on July 30, 2010

According to our checklist, and point 4 above, 75% of the work was done before June 30, 25% after July 1.

Client would be charged GST on 75% of the commission payable, and HST on 25% of the commission payable.

Determination of percentage of work done will vary from brokerage to brokerage. The above examples are based on our in-house checklist.

Alexx

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Filed Under: Ask the Agent, For Realty Professionals, For Sellers

Ask the Agent: How will HST impact the sale/purchase of my house?

June 9, 2010 (Wednesday) By

Effective July 1, the much-talked-about Harmonized Sales Tax (HST) will come into full effect in Ontario, blending the GST and the PST into a single 13% tax.

For businesses, the HST brings relief, as it transfers some burden to consumers. Under the new law, businesses will be able to recover the HST they pay to suppliers and on other goods and services.

For consumers, the HST means that items previously exempt from PST will now be taxed a total of 13%, costing the average household an additional $738 annually. Under the new law, 17% of consumer purchases will be affected, including real estate commissions.

When it comes to real estate transactions, there are two ways HST will have an impact: Firstly, on the price of a new, from the builder, home, secondly, on commission payable on resale homes.

For new homes purchased from a builder, HST will be applicable on the purchase price of the home, albeit new homes purchased as primary residences across all price ranges will qualify for a rebate of up to $24,000 of the 8% provincial component of the HST. The rebate is calculated from a stepped scale, and a series of thresholds. For a more detailed explanation of the intricacies of the program, see http://www.rev.gov.on.ca/en/taxchange/homebuyers.html 

“This rebate ensures that buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) will, on average, pay no more – or possibly even less – tax than under the PST system.” – MOR

“93 per cent of all homes sold in Ontario, on average, will not be subject to an additional tax amount under the HST.” – MOR

For resale homes, GST and, now, HST apply to real estate commissions only, as it is a service being provided to the consumer, not to the price of the home. Let’s look at a scenario to analyze the actual impact of this change on a resale home. We’ll be selling a $400,000 home, paying 5% commission total (2.5% for listing agent, 2.5% for buyer’s agent):

  With GST   With HST
       
Sale Price $  400,000.00   $  400,000.00
5% Commission $    20,000.00   $    20,000.00
       
5% Commission including Tax $    21,000.00   $    22,600.00
       
Additional Cost to Seller with HST vs GST   $      1,600.00

In this case, the additional cost to the Seller is $1,600 or 0.4% of the sale price of the home. From this, we can come up with a rule of thumb for a typical transaction where 5% is the total commission charged (2.5% for listing agent, 2.5% for buyer’s agent), the impact of HST will be $400 for every $100,000 of property value.

While it is an additional cost to sellers, one that is not welcomed by most (all) accounts, the actual impact of the HST is small in comparison to the value of your home. There are a plethora of other factors that can cost you more on the sale of your home than this tax, and that should always be kept in perspective. A dirty carpet, a cluttered closet, a messy yard, to mention a few, will all cost you more than 0.4% of your home’s sale value.

NOTE for Buyers: If you are purchasing a resale home, you do not pay tax on it! This is a common misunderstanding when speaking of how HST will impact real estate.

Ontario Premier Dalton McGuinty says that the HST is a sacrifice consumers must make in order to invest in a better future. McGuinty says that the new tax will help businesses stay competitive, a big step in building a stronger economy. Services that will see increases in taxation include dry cleaning, landscaping, electricity and heating, esthetics, and fitness training. Hotel rooms, magazine subscriptions, gasoline, vitamins, athletic facility memberships, and cigarettes are some of the products that will now be taxed at 13%.

Ontario isn’t the only province to adopt a harmonized sales tax. HST was implemented in Newfoundland, New Brunswick and Nova Scotia in 1997. In British Columbia, a 12% HST will go into effect on July 1.

To learn more about how the HST will affect businesses and consumers, visit the Ontario Ministry of Revenue’s online resource at www.rev.gov.on.ca/en

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Filed Under: Ask the Agent, For Buyers, For Realty Professionals, For Sellers, In the news

Ask The Agent: Is there a good season or time of the year to buy a resale home, bargain wise?

May 26, 2010 (Wednesday) By
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Question: Is there a good season or time of the year to buy a resale home, bargain wise?

The short answer to this question is simple. The best time to buy a home is whenever you are ready, financially, emotionally, or otherwise, to take that step.

The long answer is, there are a flurry of factors that affect the salability of a home, and whereas time of year is certainly one of them, the resale housing market over the last couple of years has been far more influenced by global economic factors than the weather, greener grass on the lawns, or how well staged a home was.

Sales in 2008 and 2009 were too erratic due to the global economic climate, and don’t truly answer this question in its general terms. To answer this, we have to look at a year of sales like 2007, which displayed a typical sales pattern from January to December.

The typical perception is that sales are slow through the winter (who wants to buy a house covered in snow), and strong through the spring (all those pretty flowers in bloom certainly make a home more attractive). The summer time quiets down a bit (vacation anyone?), followed by a surge in September and October (kids are back to school, let’s move), and the cycle repeats. It’s pretty accurate for most years.

But when is the best time to buy? Spring, when there are more listings to choose from, and more buyers to compete with? Or winter, when there isn’t as much selection, but not as many buyers out either.

Statistically speaking, this can be calculated by looking at the absorption rate (this is the number of homes that have sold in comparison to the number of homes available for sale). The smaller the percentage, the more likely you’ll find a seller willing to bargain. Based on this, from the Toronto Real Estate Board’s published statistics for 2007, January is the best month to buy, followed by September, December and February. May and June are the worse, based on this statistic. (

Data below compiled from Toronto Real Estate Board’s sales statistics for 2007)

Month

Active Listings

Sales

New Listings this Month

Sales/Active

Jan

17884

5173

12570

29%

Feb

19359

6772

11880

35%

Mar

21919

8518

15218

39%

Apr

22829

9452

15793

41%

May

23739

11146

17366

47%

Jun

21789

10451

14655

48%

Jul

20694

8912

12600

43%

Aug

19145

8059

12109

42%

Sep

21517

6866

13653

32%

Oct

20626

7915

13363

38%

Nov

18309

7313

10692

40%

Dec

13452

4646

5137

35%

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So there you go, statistically, January is the best time to buy a house across the GTA. Practically speaking, this comes with a BIG if and only if, you are ready to do so.

There are many other factors that affect your decision to buy a home. Questions that you should ask yourself, and have answers for, before taking the step to buy a home: How healthy are your finances? What are mortgage rates like? Are there homes available in your price range? Are they located in the right areas that suit your lifestyle? Do you have a plan? Do you have a personal budget that factors in all aspects of your life? How will mortgage payments, insurance, property taxes, maintenance, utilities fit in to your monthly bills? Answers to all these questions are far more important than “when should I buy a house?” when it comes to the security of your long term investment and enjoyment of your home.

 

Alexx Coelho, Broker

Prudential Town Centre Realty Inc.

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Filed Under: Ask the Agent, For Buyers

Ask the Agent: This Month’s Question

May 20, 2010 (Thursday) By

I believe that first impressions count, so I want to make sure that buyers get a good first impression of my home. What tips can you share?

1. Show you care about your home – make it loved, and make it show. Make sure that your house is sparkling clean for every showing and impeccably maintained.

2. Get rid of any trash and clutter – open up your home to make it feel more spacious and sell yourselves as conscientious homeowners passing down a family treasure.

3. Don’t let anything in or outside of your home be in disrepair – if you do, you’ll give the impression that this is a home not worth caring about.

4. As maintenance goes, painting is your best property maintenance investment – it’s relatively cheap, covers neglected surfaces and gives everything a fresh, clean topcoat.

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Filed Under: Ask the Agent
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