John Lavin Realtor Mississauga - Toronto Real Estate

Up until a couple of months ago there was frenzied activity in the Toronto and Mississauga Real Estate market.

Listings of homes for sale were few and multiple offer situations were the normal order of the day.

How quickly things change!

The Toronto Real Estate Board recently reported a 34% drop in sales for the month of July, the third straight month of declines.

What has changed?

New Federal Government mortgage rules came into effect April 19 of this year making it harder for some people to qualify for a mortgage. This would have locked some people out of the market for sure.

Is that a bad thing?

In my opinion no, some of those people could have taken on too much debt and find themselves in trouble eventually. Enough of them defaulting in the future would spell trouble for all of us, the kind of trouble our neighbours to the South of us have been experiencing over the last few years.

The biggest culprit responsible for the huge drop in sales is the new Harmonized Sales Tax introduced by the Provincial Government of Ontario and becoming effective July 1^st of this year. This tax blended the 5% Federal Goods and Services Tax with the 8% Provincial Sales Tax.

However where some goods and services were previously exempt from the Provincial Sales Tax, they now became taxable.

The following services on a real estate transaction now become subject to an additional 8% in new Harmonized Sales Taxes:

•· Home inspections

•· Mortgage Appraisals

•· Mortgage Insurance Premiums

•· Title Insurance

•· Lawyers' Fees

•· Real Estate Agents Fees

That pushed up the cost of buying a home for everyone wanting to do so, but it was particularly hard on first time buyers.

The Ontario Real Estate Association estimated the additional tax on a transaction of $326,800 will be in excess of $1500.00.

When you increase the cost of something and give nothing tangible in return the result will be a drop in demand.

There does seem to be some confusion however in the minds of the public as to whether there is any H.S.T. payable on the price of a resale home.

We in the industry need to clarify this question.

There is NO H.S.T payable on the price of a resale home, only the services involved in the transaction.

The lead up to implementation of the new H.S.T. was in part responsible for the frenzied activity in the first five months of the year but once home buyers get used to the new tax the market should get back on its feet and be more balanced.

That's how it looks from my point of view.

What do you think?

John Lavin is a full time realtor with 25 years experience helping buyers and sellers of homes, condominiums and investment properties in Toronto and Mississauga. If you are in the market for Toronto or Mississauga Real Estate please visit www.john-lavin.com

Before you rush out and buy one of those Toronto Condominium Listings you have admired for so long, you should know that not everyone is suited to condominium living.

In order to take part in a condominium lifestyle you agree from the beginning to live by certain rules and regulations stipulated by the condo corporation.

When you make an offer on a Toronto Condo your real estate agent will insert a conditional clause asking for a Status Certificate. The Status Certificate gives you not only a financial picture of the condo corporation but also the rules and regulations.

Delivery of a Status Certificate is a legal requirement in Ontario and you should upon receipt take it to your real estate lawyer for examination.

These rules and regulations will more than likely differ from one Condo Corporation to another but will contain some or all of the following:

1. No changes to interior of the unit without written consent from the management.

2. No satellite dishes or antennae.

3. No BBQs on balconies

4. Enclosure of balconies not allowed.

5. Restriction on colour of window coverings.

6. Restriction on installation of hardwood flooring, particularly in older buildings, newer ones will have sound proofing.

7. Restrictions on parking of recreational and commercial vehicles.

8. Restrictions on commercial uses of individual units.

9. Restrictions on pets or types of pets.

10. Restrictions on plantings or patio usage, particularly townhouses

11. Noise restrictions from musical instruments.

12. Rental restrictions of the unit.

13. Restrictions on usage of elevators for moving and deliveries etc.

14. Restrictions on drying clothes on balconies.

These rules and regulations are not to taken lightly. Ignoring any or all of them repeatedly will probably result in a court order to comply and substantial legal costs which you will be responsible for.

If you are purchasing Toronto Condominium Listings as an investment with the intention of renting out, make sure you insert a clause in the tenants' lease that states they agree to comply with all the rules and regulations of the Condo Corporation.

If after checking the rules and regulations of the Condo Corporation you are satisfied you can live with all of them, you can settle into your new Toronto Condo and enjoy.

John Lavin is a full time realtor with 25 years experience helping buyers and sellers of homes, condominiums and investment properties in Mississauga and Toronto. If you are in the market for a Toronto Condominium please visit www.john-lavin.com

Weaker Home Sales Predicted

The Canadian Real Estate Association has reduced its sales forecast again for this year.

459,600 units are estimated to change hands in 2010, a decline of 1.2 per cent.

This is the second time the Canadian Real Estate Association has reduced estimates from an optimistic 13.3% increase over 2009 sales figures.

Weaker sales activity in the Spring home buying season is the reason given for the adjustment to sales forecasts.

Frenzied earlier activity by buyers in the first 5 months of the year in advance of new mortgage regulations and the introduction of Harmonized Sales Tax in two of the major housing markets has led to a significant softening in those markets in recent months.

According to one housing economist resale markets are heading from a sellers' market to a buyers' market very quickly.

The Canadian Real Estate Association expects average prices for 2010 to increase 3.5% to $331,600 but to fall by 0.9% to $328,600 in 2011.

The increase in prices this year is attributed to more move-up buyer activity rather than first time buyer activity which means that more expensive homes are being sold this year.

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John Lavin is a full time realtor with 25 years experience helping buyers and sellers of homes, condominiums and investment properties in Mississauga and Toronto. Feel free to visit www.john-lavin.com

Happy Birthday Ringo

Ringo Starr, the drummer in the Beatles is 70 years old today. It hardly seems possible.

Born with name Richard Starkey he became known as Ringo in the early days of Liverpool rock-n-roll because of his penchant for wearing lots of rings on his fingers, today he wears them in his ears.

Before he was a Beatle he was the drummer in a band called Rory Storm and the Hurricanes that originally started out as a skiffle band.

As a high school kid in Liverpool at the time I recall the near riots when he replaced Pete Best, the original and much loved drummer of the Beatles, dumped unceremoniously in 1962 just before they were about to become the phenomenon they were.

There were demonstrations and huge outcry in the city and one overly exuberant fan actually attacked George Harrison. It wasn't that we didn't like Ringo, we just liked him better with Rory Storm and Pete Best with the Beatles.

These were the best years of the Beatles music in my opinion. The sound was raw and exciting born in the dark dank cellars of old warehouses near the city waterfront.

Ringo was eventually accepted and we all know what happened next of course.

If you're from Liverpool you are known as a scouser after a local dish called scouse, a stew made from meat ( usually the cheap cuts ) potatoes and vegetables ( tasted bloody awful ).

So from one scouser to another:

Happy Birthday Ringo

John Lavin is a Toronto Realtor with 25 years of experience in Toronto and Mississauga real estate market. If you are looking for Toronto Condos or Mississauga Condos For Sale why not put my 25 years of experience to work for you. Stop by my site at www.john-lavin.com  and get to know me.

Government Incentives for First Time Buyers of Toronto Condominium Listings

Down Payment

First time Toronto Condominium buyers are allowed to purchase a home with as little as 5% down payment. The mortgage has to be insured against default by either CMHC or Genworth Financial. They both have income and debt requirements you will need to satisfy. The cost of the insurance is added to the mortgage and paid for in your regular monthly payment. A conventional mortgage is also available, where no insurance is required with a 20% down payment.

RRSP Home Buyers Plan

Provided you have the funds in your RRSP you are allowed to borrow up to $25,000 from the fund to help in the purchase of your first home. There is no tax penalty for the withdrawal but the loan does have to be repaid to your RRSP over a period of 15 years.In any year the loan is not repaid that amount becomes taxable. Any money withdrawn has to have been in your RRSP for a minimum of 90 days before it can be used without attracting any tax. Some forward planning on your part could help you save money on your taxes and use the funds towards your first home purchase.

GST Rebates

Resale homes are not subject to GST in Ontario. A new housing GST rebate is available to anyone purchasing a new Toronto home or new Toronto condominium in Ontario. The rebate is usually assigned to the builder by the buyer at the time of purchase and the builder subsequently sells the property GST included. The rebates are 36% of the original 5% GST on homes priced up to $450,000 before GST. Homes priced above $450,000 are not eligible for the rebate. The rebate is only available for new homes and condos to be used as a principal residence.

Harmonized Sales Tax

Under the new Ontario Harmonized Sales Tax, new homes sold at less than $400,000 will qualify for a 6% tax rebate.

Land Transfer Tax

Land Transfer Tax is a tax set up by the Provincial Government of Ontario and is paid by the buyer in every real estate transaction in Ontario. This would ordinarily be your largest expense in a home purchase, however as a first time Toronto condominium buyer you will be eligible for a rebate of up to $2000.00, an amount payable on a purchase price of $227,500.00. Any amount above this would be subject to the tax according to the rates as follows :

up to $55,000 X 0.5%
$55,000 to $250,000 X 1%
$250,000 to $400,000 X 1.5%
$400,000 and up 2%

City of Toronto Land Transfer Tax

This is an additional tax levied by the City of Toronto. As a first time Toronto condominium buyer you are exempt from this tax up to a purchase price of $400,000. Above that or as a second time home buyer or more you will be subject to the tax at the following rates :

up to $55,000 X 0.5%
$55,000 to $250,000 X 1%
$250,000 to $400,000 X 1.5%
$400,000 and up X 2%

If you are looking for Toronto Condominium Listings why not put my 25 years of experience to work for you. Stop by my site at www.john-lavin.com and get to know me.