Szabolcs Pall

So what's going on in the real estate market, I mean really going on? The most important thing to remember is that it is regional, so take with a grain of salt, all those national statistics that newspapers love to throw at us. They are not a true representation of what's really going on in your own backyard.

As far as where you should be investing, you should be looking at areas where the population and income levels are both on the rise. Government spending on infrastructure such as highways, light rail, subways and round-abouts are always a good indication of an upcoming hot spot. Among the highest in all of Ontario are Kitchener-Waterloo-Cambridge and Hamilton, according to Don R. Cambell from The Real Estate Investment Network of Canada. He was recently on the popular Canadian television show The Hour on CBC, hosted by George Stroumboulopoulos. Click on this link to see the full archived show: The Hour - March 18th, 2009.

Did you know that plans to harmonize the Sales and Provincial taxes could negatively effect your real estate transaction? It would apply to not only New Construction homes over $400,000 but will also affect resale home transactions. PST would now be applied to legal fees, real estate fees, appraisal fees, moving expenses, staging services, landscaping, and more services usually associated with real estate transactions.

A Home Energy Audit is something that is required before you begin making energy efficiency improvements to your home, if you plan on applying for Provincial and Federal rebates through the ecoENERGY program.

It's also something that could be mandatory in the coming months by the Ontario Government, as laid out in the Green Energy and Green Economy Act (Bill 150). Part of this Act could force home owners to pay for an Energy Audit, costing about $300, before putting their house up for sale. What this means is that you'll begin to see the EnerGuide sticker on the Electrical Panel of each home, similar to the ones you currently see on major appliances. It will show you the current efficiency level of the home, and also what level could be acheived with the improvements as presented in the Energy Audit.

There is concern from the Ontario Real Estate Association, that these audits could be used by potential purchasers as bargaining chips to significantly reduce the final selling price. I'll keep you updated of how this act progresses through legislation.

Ready 2 Move?

As a professional REALTOR®, it is my job to ensure you are well prepared and consulted on the entire process of purchasing or selling your home? This means having frequent conversations about expectations and how I can best meet them, and preparing you for each stage of the real estate transaction. You'll always know where you are on the path home, and your sale or purchase will be a rewarding and involving experience.

What is HRTC? It's the Home Renovation Tax Credit that was proposed in the January 27th Federal Budget, that will provide for a 15% income tax credit on eligible home renovation expenditures, and is family based. Good between January 27th 2009 and February 1st 2010, it can be claimed for the 2009 taxation year on expenditures greater than $1,000, but no more than $10,000 and can provide up to $1,350 in tax relief.

Examples of eligible improvements are kitchen, bathroom and basement renovations, new deck, new hardwood floors or carpet, painting of interior or exterior of house and others. Excluded are purchase of tools and furniture, carpet cleaning and maintenance contracts, among others.

Here's an example: Sally and Ed are a couple who purchased a home. They decide to replace windows and insulate their home in 2009, incurring expenses of $10,000. After the minimum threshold of $1,000, the 15% tax credit is available on $9,000 in eligible expenditures, providing tax relief of $1,350.

This tax credit complements the support from the Government for energy-saving improvements that are already available.

Are you Ready2Move?