Lindsay Walls - Oakville Ontario Realtor

By now, most of us have probably seen enough HGTV to realize that preparing your home for sale or “home staging” is a critical part of the home selling process. While most buyers tell me they can see beyond cosmetic issues such as paint colours, decor and furniture placement, the reality is that homes that look good, inevitably sell faster and for top dollar. When you remove the emotional attachment to your home by decluttering, depersonalizing, and neutralizing, you are left with a space that buyers instantly connect with. All of a sudden a buyer starts mentally moving their own things in.

Hiring home staging consultants has always been part of the services I provide to my clients. I’ve seen the benefits first hand and can’t stress its importance enough. Many people gloss over the work involved prior to listing your home but if you want to maximize your return on investment it is absolutely critical that you spend the time and energy preparing your home BEFORE you list it. Remember that the selling process begins long before the “For Sale” sign hits your front lawn.

RE/MAX recently came out with an exciting new program called FIT TO SELL. This is a great tool that homeowners can use at their leisure to help them prepare their own home for sale. To learn more about the program visit the Fit to Sell website at www.fittosell.ca. I am also including the latest Fit to Sell press release below for more details.

All the best!

Lindsay

The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger – but recognize the opportunity.

John F. Kennedy

For a few months now we’ve heard all about the economy. Opinions are being given everywhere we turn – on the radio, on our tv’s, in our living rooms, as we talk to our friends and family. There is no doubt that we are living in interesting economic times but as we hear more and more opinions on the subject, I’m starting to see a trend emerge with home buyers who are looking at the sluggish economy as a fantastic opportunity.

I continually meet first time home owners who are interested in understanding the market and all the incentives available to them. I am also meeting several buyers who are weighing the option of moving into something a little larger – an option not affordable to them until recently.

Quite simply, education is key when making wise investment decisions. For those thinking about making your first foray into real estate, or for those looking at using the softer market to move up, here is a list of incentives currently being offered:

1. Tax Credit for First Time Homebuyers

Benefit: The new federal budget proposed a $750 tax credit for first time home buyers to help with various closing costs (legal fees, disbursements, and land transfer tax)

How it works: The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009. The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

2. Home Buyers RSP plan withdrawal limit increased to $25,000

Benefit: In order to provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, the 2009 Federal Budget proposes to increase the Home Buyers Plan withdrawal amount from $20,000 to $25,000. The RRSP funds deducted can be used for ANYTHING as long as you buy a home. Use the funds to cover your down payment, pay closing costs, reduce debt, buy a new car, buy furniture or apply against moving costs.

How it Works: Two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 ($25,000 each) from their RRSP funds toward the purchase of a home in Canada. Amounts withdrawn must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual’s income if not repaid.

3. Land Transfer Tax Credit

Benefit: First time home buyers are also eligible for a land transfer tax rebate of up to $2000, based on the purchase price of your new home.

How it works: The amount of the refund claimed will, if granted, offset the land transfer tax payable. For example, a home costing $300,000 carries a land transfer tax of $2,975. In this case, your tax refund will be $2,000 and your net tax payable is $975.

4. Home Renovation Tax Credit

Benefit: The new federal budget proposes a new tax credit for home renovations of up to $1,350. This credit applies to all home owners, not just first time buyers. Home owners can now claim a 15% credit on eligible expenditures between $1,000-$10,000, making a maximum tax credit of $1,350.

How it works: Renovation costs for projects such as finishing a basement, putting in new flooring, and re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals, painting and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

5. Low mortgage rates

Benefit: The big Canadian banks have recently lowered their prime lending rate (the rate that banks give to their best and most credit-worthy customers) to a low 3%. Obtaining a great interest rate on your mortgage can save you thousands of dollars over the long term.

How it works: There are currently a wide number of financing options available to qualified buyers at terrific rates. Lending rates vary widely by financial institution and personal credit history. All home buyers should visit a credible mortgage broker or lender for mortgage approval prior to placing an offer on a home. These professionals are skilled at helping you find the lending options best suited to your needs.

6. Shift to more balanced markets

Benefit: The local real estate market has enjoyed years of rising home prices and quick sales. For several years, local demand for housing has outpaced supply which is often referred to as a “sellers market”. This resulted in steadily rising home prices and quick sales. As the economy softens, so too has the general demand for housing. The opportunity now exists for buyers to seek homes at a lower price and for better terms than they could have at the height of the market.

Note: Each home is unique. Buyers should expect that homes offering good value (great location, desired features, and reasonable asking prices) will sell quickly and sell at a fair price.

Ready to take advantage of today’s fantastic buying opportunities? I would love to hear from you. Contact me at 905.338.9000 or lindsay@remaxaboutowne.com for more information on the home buying process and find your dream home today!

Lindsay

The following article was just released by RE/MAX Ontario-Atlantic Canada Inc...

Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX - Recovery linked to economic stability next year

Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year's historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John's, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

Canada's real estate environment is considerably more complex than it has been in recent years. The landscape is definitely changing -- with most markets shifting into either balanced or buyer's territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer's market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

While the economy will dictate real estate performance next year, it's important to remember that demand still exists in the marketplace. In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.

I also have a 24 page report outlining home sales and market conditions for various markets across Canada. If you are interested in receiving this information directly to your inbox, please contact me at lindsay@remaxaboutowne.com or 905.338.9000.

Regards, Lindsay

Halton Regional Council is considering putting a freeze on 40,000 new homes slated for development in North Oakville. Why do you ask? The region believes they are carrying a disproportionate amount of infrastructure costs associated with the growing Oakville population (ie: new hospital requirements and expanding transportation needs). Halton region unanimously passed council to ammend a clause in the North Oakville development plan that will allow them to freeze water and sewer pipe installation, in turn freezing development in North Oakville.

You can expect some healthy debate on this topic in the coming months. Final development application approvals will be sought in Spring '09. Government has until this time to debate the issue and confirm government spending levels. If the region disagrees, they can prevent the installation of sewer and water pipes, ultimately delaying development in North Oakville.

For more information on this topic see the following article published in the Toronto Star: Showdown Looms in Halton http://www.thestar.com/news/gta/article/540177