If you are an investor contemplating multi-family or student housing as an investment, you need to know about recent changes to legislation. I came across this small blurb via email and the author has kindly allowed me to reproduce it here:

"An Ontario residential landlord can charge anything they want to a new tenant initially. How much they can raise the monthly rent thereafter depends on the age of the property. Ontario residential rent control law states that for properties built prior to November 1, 1991, a landlord can’t raise the rent any more than the percentage guideline in the Ontario Residential Tenancies Act (RTA). This rate changes yearly but is usually around 2%. A landlord can apply for an exception to this guideline, but only if certain types of property improvements are made. Exceptions are seldom granted.

However, properties built after November 1, 1991 are exempt from rent control. Landlords can raise rents on these newer properties as much they want with their current tenants. Therefore, considering the strong Toronto real estate market, investment properties built after 1991 can be a considerably better investment than older properties. The Residential Tenancies Act (RTA) heavily favors tenants over landlords."

All of which could have major impact upon Buyers persuing properties in the Hamilton area where a large number of student homes are available, for example.

If you want to know more about the RTA, the author of the above blurb, Katherine Paliwoda of Katherine Paliwoda & Associates, RECO Approved Educator, offers a 6 credit course entitled "“What Every Realtor Should Know About A Landlord's Rights And Obligations”, which of course, is aimed at Realtors working with investors. You could take the course yourself, or better yet, suggest your agent take it in order to provide you with better service.

https://katherinepaliwoda.com/Courses.html.

Robert J. Morrow, editor: www.HamiltonHomeReview.com & www.NewNesters.ca, websites offering MLS listings, Private Sale listings, Reno tips, and more!

We spoke about the refund on Ontario Land Transfer Tax for first time home buyers earlier in this blog. Legislation, however, didn't catch up until May 18/08. For the most up-to-date info on eligibility, how to apply, etc., follow this government link: (copy and place in your browser)

http://www.rev.gov.on.ca/english/refund/newhome/

Robert J. Morrow, editor: www.HamiltonHomeReview.com

A fairer property tax appeal system is expected with changes announced by the provincial government. The changes mean the onus of proof on property assessment appeals is reversed so that, when a property owner appeals an assessment, the Municipal Property Assessment Corporation (MPAC) would be required to prove the accuracy of the new assessment. The government move follows the Ombudsman's recommendation that this measure would enhance the fairness of the appeal process. The legislation would place the onus on MPAC to prove the accuracy of property assessments that are appealed to the Assessment Review Board (ARB).

The government also intends to introduce legislation to implement changes to the assessment appeal system announced in the 2007 Budget - changes designed to create a more streamlined and transparent appeal system. A key proposed change would make the Request for Reconsideration (RFR) program the first stage of the appeal process for property owners. The RFR, which is free of charge, encourages the sharing of information between MPAC and the property owner, and provides taxpayers with the opportunity to resolve their concerns directly with MPAC in an informal setting.

The Ministry of Finance is also working with MPAC and the ARB to disclose valuation information to taxpayers about their property assessment in a timely way. This will help property owners review the accuracy of their assessment, decide whether to engage in the RFR process, and prepare for their hearing if they decide to appeal to the ARB.

These measures are proposed to take effect for the 2009 taxation year. Details about the proposed new appeal procedures and deadlines will be communicated to property owners in the coming months, prior to the 2009 implementation date.

Originally published in e-Edge, copyright Ontario Real Estate Association, May/08 edition (unabridged)

We have been telling all our first time Buyers about this one. Who knows how long it will last? It's best to get the lawyer to handle the actual submission but clients can fill out the forms available from the site below and have it ready upon closing of their first home.

ONTARIO EXPANDS LAND TRANSFER TAX REFUND PROGRAM

TORONTO - The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.

"Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.

Effective midnight tonight, (Dec 13/07) first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.

The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario's economic advantage and help manufacturers and other sectors challenged by current economic conditions.