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Welcome to TonySellsToronto.com and TorontoCondosAndLofts.com
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 Welcome to 'TonySellsToronto' and 'TorontoCondosAndLofts'.
Our Greater Toronto Area real estate market offers many options. Whether you're Buying, Selling or Leasing real estate, the process can often be complex. Knowing the product, understanding the market and conditions, having the much needed marketing, selling and negotiating skills, are all essential attributes your real estate representative should possess. I consult my clients with leading edge skills, services and knowledge, no matter what their real estate need. My promise is to make their real estate experience 'the best'.
 I invite you to contact me with any of your real estate questions or comments. I look forward to hearing from you.
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Tony Kurec, Real Estate Sales Representative
416-487-5131 tony@TonySellsToronto.com REMAX Ultimate Realty Inc., Brokerage |
For Sale: Fabulous Willowdale Family Home
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Yonge & Bloor Yorkville Condominium
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Gorgeous 2 Bedroom Condo Just Off Yonge
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Willowdale North York Toronto Bungalow
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Tony Kurec & RE/MAX & You - Partners For Success In Selling Your Home
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Tony Contributes from Every Sale To The Childrens Miracle Network
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2010 MARKET FORECAST
2010 Market Forecast
Most Forecasters never look back - that's because they don't want you to look at their 'near' misses. Our 2009 Forecast called for more sales than in 2008 (and we told you that would happen in the second half of the year)! Everyone else predicted sales at 2001 levels (a big time recession). Who was right? We also recommend that you review our ten year forecast made in 2007 whereby we said condo prices would double and the long term trend would be upwards with some pauses but not corrections along the way!
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WHAT TO LOOK FOR IN 2010
1) NO real estate 'bubble' this year! It usually takes three years of double digit price increases to produce the effect. And in the condo market we have had only about 8 months so far!
2) NO interest rate spikes this year. The Bank of Canada and Finance Minister are left with nothing but 'moral suasion' in an attempt to slow down this market. Our bank rates (variable) are not going higher until the U.S. raises theirs, and that wont' be in 2010. Fixed rates could move slightly higher if Governments start heavy borrowing to cover their deficits.
3) DON'T get sidetracked by Canadian real estate markets. Focus on the condo market - particularly downtown. The bad news about the U.S. market is really centered on 4 states and 21 counties. Miami condos are a disaster but 5 miles across the causeway in South Beach, the market is still going strong - no foreclosures and rising prices! Why? There was no SPEC construction and there is a limited supply of product. So what happens in Vegas stays in Vegas! And that too is real estate.
4) HST (JULY 1ST) will impact the real estate market. First it will bring sales forward from the second half of the year and secondly, a new tax always causes consumers to stop spending on everything for a period of time. Remember the City Land Transfer tax and the introduction of the GST? After several months of complaining, Canadians will just get on with life, accept more taxes, and resume their spending habits.
5) Watch the avg price per sq.ft. differential between the resale market and the new condo market. That will tell you where the investors are going. Seven years ago the differential was only $25 and investors poured into new projects. Over time the gap rose to about $150 per sq.ft. and investors came back to the resale market. Investors returned to the new project market in the fall of 2009, when the differential had dropped to under $75. Today the average price for resale condos is about $500 and for new projects it is $600
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WHAT TO DO IN 2010
1) What are driving prices in this market are NOT cheap mortgage rates but rather a lack of listings and a race by buyers to purchase before the HST! Again this year will be made up of two markets. The first half of the year will be a sellers' market. SELLERS should list NOW or be prepared to wait until 2011.
2) In the condo market over the past five years there have been very few buying opportunities. One presented itself in the first half of 2009. The second opportunity for BUYERS will be this fall. Don't expect prices to drop but do expect prices to stabilize and 'multiple offer' scenarios to drop significantly. Besides the HST, a significant number of new condo projects will be registering in the second half of the year and we expect an additional 2,000 units will come on the market from investors (that is about a 3-4 months' supply) which will significantly reduce the listing shortage in the back end of the year.
3) BE A PLAYER IN THE ASSIGNMENT MARKET (buying and selling properties before they are registered) an often overlooked area by buyers and sellers. Sellers can bring their property to market earlier (and beat the slowdown in the latter half of the year) and buyers can escape from the 'multiple offer' frenzy and move in earlier. To be a PLAYER you need a knowledgeable realtor who knows how to structure the deal and you need a skilled lawyer who knows how to close the deal!
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Hand-Held Devices Ban Begins October 26
October 01, 2009 -- The provincial ban on the use of hand-held devices while driving will take effect on October 26, 2009.
The new law will make it ILLEGAL for drivers to talk, text, type, dial, or email using hand-held cell phones and other hand-held communications and entertainment devices (All drivers may use hand-held devices to call 9-1-1). Hands-free devices will still be permitted. The new law also prohibits viewing a display screen unrelated to the driving task such as laptops or DVD players while driving.
Fines Begin February 1, 2010
Following a three-month period that begins October 26, where the focus will be on educating drivers, police will START ISSUEING TICKETS on February 1, 2010. Under Ontario’s new law, fines of up to $500 can be levied against distracted drivers who text, type, email, dial, or chat using a prohibited hand-held device.
Hands-Free Devices
The new law applies only to hand-held wireless communications and hand-held electronic entertainment devices. This means drivers must only use wireless devices that can be used in a "hands-free" manner:
• a cell phone with an earpiece or headset using voice dialing, or plugged into the vehicle's sound system
• a global positioning system device that is properly secured to the dashboard or another accessible place in the vehicle
• a portable audio player that has been plugged into the vehicle's sound system.
Some wireless devices require that users push a button to activate and/or deactivate the device's "hands-free" function. This activity is permitted under the law.
Exceptions
Drivers will not be permitted to use hand-held communication and entertainment devices when driving, with the following exceptions:
• Calling 9-1-1 in an emergency situation
• When the driver has safely pulled off the roadway and is stationary or is lawfully parked.
Other devices not included in the ban:
• Viewing a display screen used for collision avoidance.
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HST Tax Will Not Apply On The Purchase Price Of Re-Sale Homes however.......
October 21, 2009 -- The Prov Government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.
Background
The provincial government has announced that it intends to combine the 8% Provincial Sales Tax with the 5% federal GST, creating a 13% Harmonized Sales Tax (HST).
The HST is NOT YET IN EFFECT. The provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010; however, note transition rules below.
HST WILL NOT APPLY ON THE PURCHASE PRICE OF RE-SALE HOMES.
HST WOULD APPLY to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
HST WILL APPY TO THE PURCHASE PRICE OF NEWLY CONSTRUCTED HOMES. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.
Transitional Rules for New Housing
Generally, sales of new homes accepted on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.
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Harmonized Sales Tax - Additional Rules
Additional Transitional Rules
Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.
More detail on the transition rules is available by calling the provincial government enquiry line at 1-800-337-7222.
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HST - Harmonized Sales Tax July 1, 2010
Starting July 1, 2010 Ontarians can expect to pay a harmonized sales tax (HST) rate of 13% on a long list goods and services that were previously exempt from the 8% Prov Sales Tax (PST). While the impact of the tax will be felt by all Ontarians, the province’s 3 million homeowners and the thousands who buy and sell a home every year will be hit particularly hard by this latest tax grab.
Specifically, home buyers and sellers can expect to pay 8% more on legal fees, appraisals, real estate commissions, home inspection fees, moving costs and the provincial government’s forthcoming system of mandatory home energy audits. Ontarians will pay, on average, an additional $1,449 in new taxes on their next residential real estate transaction.
Also, consider the impact on the costs of owning and living in that home after it’s been purchased. Specifically, a HST will add hundreds, potentially thousands of dollars in additional tax on utility bills, such as gas, electricity and home heating fuel, on home renovation labour, the cost of lawn upkeep or landscaping and the cost of snow removal. Moreover, a HST will increase the cost of living with 8% more tax on gasoline, personal and professional services, meals under $4, dry cleaning, cab fares, magazine subscriptions, plane tickets, vitamins and cell phone charges.
While the Govt of Ontario plans to compensate homeowners by offering sales tax transition cheques and modest income tax reductions, these measures will in no way offset this new tax. A onetime payment of $1000 (for a family of four) and a modest $368 reduction in income taxes will do very little to offset the burden of an 8% tax increase on a litany of items in perpetuity. Certain basic needs, like groceries, prescription drugs, and children’s clothing, would be exempt from the new tax.
Visit www.TorontoRealEstateBoard.com to access a link where you can write to your MPP and tell them that we do not need higher taxes on homeownership.
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Financial Help For First-Time Home Buyers
1 - The HOME BUYERS' PLAN (HBP) allows first-time home buyers to withdraw up to $25,000 from their RRSP without having to pay tax (or up to $50,000 per couple). To be tax-free, repayment can be made in installments over a period of up to 15 years.
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2 - The FIRST-TIME HOME BUYERS' TAX CREDIT gives a first-time home buyer a non-refundable tax-credit of $750 claimed on their personal income tax return. *A First-Time Home Buyer is defined as someone who has not owned a home within the past 4 years.
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3 - The HOME RENOVATION TAX CREDIT will allow a tax credit of up to $1,350 for renovations and associated costs for work or goods acquired between Jan 27, 2009 - Feb 1, 2010. The credit will be for 15% of expenses between $1,000 to $10,000 and will be only available in 2009.
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4 - LAND TRANSFER TAX REBATES: For the Ontario LTT, first-time buyers are exempt up to $2,000 of the tax. For the Toronto LTT, first-time buyers of re-sale or new homes are eligable for a waiver of up to $3,725 (which is the tax on a $400,000 property). So, basically, first-time buyers of a home up to $400,000 in Toronto will not pay the tax. Over that amount, the rebate is prorated so that the first $3725 is waived. *These LTT Rebate programs are for those who have Never owned a home Ever.
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For helpful CALCULATORS (Mortgage, Land Transfer Tax, CMHC, and Rent vs Buy ),click here>
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New Land Transfer Tax Rebate Plan for First-Time Buyers
Province Expands Land Transfer Tax Rebate **********
December 13, 2007 -- The provincial government has announced that it is expanding the PROVINCIAL land transfer tax rebate for first-time buyers to include re-sale housing, something which REALTORS® have lobbied for.
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Details: First-time buyers of BOTH re-sale, and newly constructed homes, will be eligible for a rebate of the provincial land transfer tax of up to $2,000. Effective for first-time buyers who enter into Agreements of Purchase and Sale AFTER December 13, 2007.
Further information is available by calling:
Ministry of Finance
Land Transfer Tax Section
905-433-6361
********** To CALCULATE your Land Transfer Tax, click here>
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Mortgage News
MORTGAGE NEWS ...
The Federal Department of Finance has announced changes to the guidelines for high-ratio mortgage insurance effective October 15, 2008, as follows:
- Maximum amortization reduced to 35 years from 40 years;
- 5% minimum down payment (no more 100% financing);
- Minimum credit score 620 (lower scores will be considered on an exception basis);
- Insurance will not be available for high-ratio ‘interest only’ payments and lines of credit;
- Minimum loan documentation standards, particularly for appraisals and income verification (this may mean an end to insured mortgages for self-employed purchasers who cannot verify the income required to qualify);
These guidelines won’t apply to conventional mortgages, however, many financial institutions apply the insurance guidelines to all of their lending.
Banks have three insurers they can choose from; Canada Housing and Mortgage (CMHC), Genworth, and AIG. These insurers are typically used for mortgages over 80% of a properties value.
The Federal Government (CMHC ONLY) feels it is prudent to adjust their mortgage insurance policies in response to recent housing and mortgage issues in the U.S.
Mortgage arears in Canada are very LOW at .27%, which is the lowest level since 1990 when it was .65%. Regardless, the Government wants to be cautious.
Most borrowers continue to go with 5 year VARIABLE mortgages, or in other words tieing their mortgage rate to the Governments Bank prime which very stable and rates are currently about 4%. Conversely, few will choose fixed terms that are tied to the BOND MARKET that is typically higher.
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Best Rates Click Chart: Mortgage, Insurance, Money Rates
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Comtemporary Home. - Prepared To Be Wow'd
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Beautiful 1 Bedroom + Den/Bedroom
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Luxury Condo On Yonge Subway line
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Now SOLD Over This Asking Price
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