For more information please contact A. Mark Argentino A. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real Estate RE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
Thank you for your real estate email inquiry. This is not an easy question to answer. Nobody knows 100% but if the past 16 years are any indication and if the last 2 months are any indication, then you should be trading up now rather than waiting.
The real estate companies have almost all increased their predictions on price increases for this year. Initially many were saying that they expect a 2 to 4% increase in prices, now it's more like 4 to 7% and even higher.
Prices are currently escalating.
When the market prices increase the larger homes always increase more. For example, if you currently live in a $300,000 townhouse and prices increase from March 1 to June 1 by 5% then the townhouse will increase by about $15,000. But, a home that is currently $400,000 will increase by at least $25,000 to maybe even $40,000 or more. This is always the case. The larger priced properties increase more.
I've been watching the market very closely since the last drop in the market prices, which was January of 2008. Since that time prices have only escalated each quarter and this is quite unnerving. If you read Garth Turner, he preaches doom and gloom all the time and the fact that the bubble is about to burst. I have followed Garth Turner since I got in the business in 1987 and he was often right back in the late 80's and early 90's but since 1995 prices have only gone up every year, year after year. See here:
http://www.mississauga4sale.com/TREBavg1995date.htm
Again, nobody can know for certain what will happen in the future, but it appears prices in the GTA will continue their steady upward slope for the foreseeable future.
If prices only increase 4% per year, the average will be well over $638,000 in a few short years! See the graph here:
http://www.mississauga4sale.com/TREBprice.htm#prediction
When you trade up it's better to buy first and then sell, but this is a tough decision and requires much thought, read more about this here:
http://www.mississauga4sale.com/sell-first-or-buy-first.htm
Please let me know if you have any other questions or if there is anything else I can help you with.
Thank you again for contacting me and I will do my best to help you with your real estate needs,
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
For more information please contact A. Mark ArgentinoA. Mark Argentino, Broker, P.Eng.,Specializing in Residential & Investment Real EstateRE/MAX Realty Specialists Inc., Brokerage2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1BUS. 905-828-3434FAX. 905-828-2829E-MAIL: mark@mississauga4sale.comWebsite: Mississauga4Sale.com
THE HST AND ITS AFFECT ON ONTARIO REAL ESTATE TRANSACTIONS
The Harmonized Sales Tax (HST) came into effect on July 1, 2010 and as I am sure everyone knows, replaces the federal goods and services tax (GST) and the provincial sales tax (PST). The good news from a real estate perspective is that the sale of used residential property (i.e. your home), which was exempt previously from both GST and PST, is also exempt from HST. The bad news is that a number of other services associated with or incidental to real estate transactions are now subject to the 13% HST whereas before they were only subject to the 5% GST. These services include realtor`s commission, legal fees, moving fees and home inspection fees.
The rules for new homes are little more complicated. However an Agreement for the purchase of new home which was signed before June 18, 2009 will not be subject for HST even if the transaction closes after July 1, 2010. A purchaser may also be entitled to receive a transitional rebate of part of the 8% provincial component of the HST where the construction of the home straddles the July 1, 2010 implementation date. For new homes where less than 10% of the house was complete before July 1, 2010, there will be a rebate available equal to 36% of the federal component of the HST and 75% of the provincial component of the HST. However the rebate of the provincial component of the HST is only available for the first $400,000.00 of the purchase price. If you are paying more than this, there will be no rebate on the amount of the purchase price which exceeds $400,000.00.
Typically new homes in Ontario were priced with the GST included. The builder would pay the GST on closing. The purchaser would assign the right to receive the rebate to the builder in the Agreement of Purchase and Sale. It is unclear whether this practice will continue under the HST regime especially for homes valued at more than $400,000.00. As such you should make sure that the price you agree to pay does include the HST. If not, tax of 13% will be added on closing and you will have to apply to receive the rebate from each of the federal and provincial governments. In addition there will be no rebate available for the provincial component of the tax payable on the portion of the purchase price exceeding $400,000.00.
Commercial real estate will be subject to HST. However provided the purchaser and seller are HST registrants, the purchaser will be able to claim the HST paid as an input tax credit. As such it is very important that the Agreement of Purchase and Sale addresses this issue.
Residential lease payments were exempt from GST and remain exempt from HST. Commercial rental payments however will be subject to the full 13% HST, and the payer will be entitled to claim an input tax credit for the full amount of the payment.
No matter how you look at it, the HST is another flagrant tax grab for the already highly taxed Canadian consumer. Because it is an end-user tax, businesses will now be able to claim the provincial portion of the HST on goods they buy in the course of carrying on their business as an input tax credit whereas before PST could not be recovered unless a business qualified for a specific exemption. It remains to be seen however how much of the increased cost of an Ontario real estate transaction can be passed on to consumers. It is a safe bet that the slowing of the real estate market since the HST came into effect is not a coincidence. Courtesy of Michael Woods
Any questions, please let me know, thank you, Mark
New CMHC Rules for Self-Employed Borrowers in effect TODAY
New rules for self-employed borrowers are effective today Friday, April 9th,
2010 for all mortgages insured by by Canada Mortgage and Housing Corporation
(CMHC) and pose new challenges for this category of clients.
*Purchases are only available up to 90% (previously 95%)
*Refinances are only available up to 85% (previously 90%)
*Commissioned sales borrowers are no longer eligible under this program
*A minimum of 2 years consecutive self-employment will no longer be required
*Borrowers must have a minimum of 2 years work experience in the same field
Now, self-employed and commissioned-income borrowers with more than three years in the same business applying for a mortgage, are required to provide traditional proof of income (or "third party validation") through documents like financial statements, T1 Generals, Notice of Assessments and T4s etc.
PLEASE NOTE: Genworth Financial Canada's (GNW) policies remain unchanged and self-employed applicants who have been in business for 2 years or longer continue to be eligible BUSINESS FOR SELF (ALT. A) program that means more Choice & Convenience for your potential clients.
TROUBLE GETTING FINANCING??? Have you been turned down lately?
We Can Help You!
6 mon 3.85
1 year 2.49
2 year 2.95
3 year 3.29
4 year 4.09
5 year 4.19
7 year 4.95
10 year4.99
Prime Rate 2.25% prime -.50% = 1.75%
* No charge for qualified applicants
* 1st & 2nd Mortgages
* Up to 120 days rate guarantee
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* Mortgages on all types of Property (Industrial, Commercial
Residential).
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Mark
Yes, we can certainly help you find a place to live.
Whether this is the right time of year or the market to purchase, nobody knows for sure. The prices have only been escalating at a fairly constant rate since about 2000 and nearly every year since 1995, see here:
http://www.mississauga4sale.com/TREBavg1995date.htm
There are no guarantees, but it appears the market will continue.
HST and increased rates may have something to do with our current rise, but rates are still exceptionally low compared to historical figures, this is why our market has done so well in the past 5 years or so. Even if rates increase 1% in the next 9 months, the mortgage rates are still very low.
You should get into the market as soon as you can in your life, this way you are paying down the mortgage rather than throwing rent money out the window, that's my advice. Buying a home is forced savings, in 25 years at the longest, you will own it outright and then you have a nice property with large equity. If you rent you do not have this at the end of 25 years.
The entire buying process is explained here
http://www.mississauga4sale.com/buying.htm
Please let me know if you have any other questions or if there is anything else I can help you with.
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
These are 'typical' additional costs associated when buying real estate in Ontario - more particularly in Mississauga and the GTA.
Or you may wish to receive new Power of Sale Listings twice per week.
Please let me know if you have any other questions or if there is anything else I can help you with.
Thank you again for contacting me and I will do my best to help you with your real estate needs,
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
Website : Mississauga4Sale.com
Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010.
This result represented a large increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough. Last month’s sales were slightly higher than the January average in the five years
preceding 2009.
“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour.
“Increasingly confident consumers moved to take advantage of affordable home ownership.”
The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.
“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of 2009,” said Jason
Mercer, TREB’s Senior Manager of Market Analysis. “The rate of sales and price growth will be lower
GTA REALTORS® REPORT JANUARY RESALE HOUSING MARKET FIGURES
TORONTO, February 3, 2010 -- Greater Toronto REALTORS® reported 4,986 transactions through the Multiple Listing Service (MLS®) in January 2010. This result represented a large
increase over the 2,670 sales in January 2009 when the home sales were in a recessionary trough.
Last month’s sales were slightly higher than the January average in the five years preceding 2009.
“The GTA housing market has rebounded well from the lows in sales experienced at the beginning of 2009. Sales climbed back to healthy levels across the GTA because the cost of home ownership remained affordable in the Toronto area,” said TREB President Tom Lebour.
“Increasingly confident consumers moved to take advantage of affordable home ownership.”
The average home selling price in January 2010 climbed 19 per cent to $409,058, compared to 343,632 in the same month last year.
“Expect strong annual growth rates for existing home sales and average price through the first quarter as we continue to make comparisons to the weak market conditions at the beginning of
2009,”
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com
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I hope this finds you Happy and Healthy! All the Best! Mark A. Mark Argentino
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New beginnings
Turning the page on 2009 will be done with great relief almost everywhere in Canada. The past year has been, by far, the toughest since the early 1990s recession and, in some cases, the early 1980s recession. Hardship was evident from coast to coast, even in parts of the country, such as Alberta, that were previously considered almost bullet-proof.
Perhaps more importantly, however, will be the full force of fiscal and monetary stimulus kicking in. Nearly all governments at the federal, provincial and municipal levels have initiated substantial infrastructure spending programs and these will be in high gear during the year ahead.
In most cases, although not all, 2010 will be the peak of stimulus spending.
The easing of monetary policy is already having a visible impact – most notably in housing resale markets across the country – and should continue to do so despite our expectation that the Bank of Canada will gradually take its feet off the gas pedal starting mid-year. Extremely low mortgage rates have been key to the spectacular rebound in housing resale activity in every province since early 2009.
The precipitous decline in activity that started late in 2008 plunged a number of provinces – including Ontario, Alberta and British Columbia – into a deep slump through the better part of the year, which reverberated loudly in regional job markets.
The ranks of the unemployed swelled and unemployment rates surged broadly, reaching the highest levels since the 1990s in Ontario and Alberta.
While many challenges will remain, 2010 promises a widespread turnaround in economic performance, albeit a modest one at first. A more sanguine global context will sharply contrast with the meltdown on the world stage that took place in 2008 and early 2009. With the financial crisis behind us and the U.S. economy on the mend, factors “external” to the provincial economies are expected to contribute positively to growth again.
In turn, this housing resurgence should be seen as evidence that consumers are feeling more upbeat even in areas of the country such as British Columbia, Ontario and Alberta where the recession caused substantial damage.
The price tag for the fiscal stimulus is enormous – huge budget deficits.
Collectively, the provinces are projecting shortfalls totaling $38.2 billion in the 2009-10 fiscal year and at least $30.2 billion in 2010-11 (with two provinces not providing estimates), both records in terms of value. However, relative to GDP, the deficits will be modestly milder than the peaks recorded in the early 1990s.
While running up huge budget shortfalls might cause some discomfort, the alternative was even less attractive given the severity of the economic downturn. Nonetheless, returning to balance during the medium-term will be a challenge involving difficult choices. ECONOMICS I RESEARCH
In this update, there is little change to the big picture from our September Provincial Outlook: the contraction in activity is still seen to be widely spread in 2009 among provinces (with Manitoba and Nova Scotia the only exceptions)and the expected recovery to be equally generalized in 2010.
On the upside, there have been some upward revisions to New Brunswick and Nova Scotia in both 2009 and 2010 (Nova Scotia is now projected to be flat in 2009), and Quebec and Manitoba in 2009.
In this report, we are also introducing forecasts for 2011, which generally depict provincial economies strengthening further. The western part of the country – led by Saskatchewan – is generally expected to grow faster than the national
average of 3.9% with the exception of British Columbia, which will be feeling some post-Olympics moderation.
However, we have made minor revisions to some provincial forecasts. The most significant change has been for Newfoundland & Labrador, where longer-than-expected production shutdowns in the mining sector have prompted us to deepen the real GDP decline in 2009 by one percentage point to 4.5% and to bump up growth slightly in 2010 to 2.4% from 2%.
Smaller downward revisions have also been made to Alberta (to reflect weaker-than-expected momentum at this stage) in both 2009 and 2010, Saskatchewan in 2009 (in light of the dramatic drop in potash production) and Ontario in 2009 and 2010 (a larger-than-expected decline in the second quarter of 2009 and slightly more subdued recovery in 2010).
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com
Traditionally buyers get five basic chattels and all the home fixtures when buying residential homes. Lately we have noticed a shift from this trend as sellers now either sell with less or sell with a different set from that with which they staged.
Accordingly we must now pay great attention to what is included or excluded in the chattels and fixtures on the agreement of purchase and sale.
When acting for either party, to ensure clarity of the agreement, it is prudent to not only exclude any fixtures that have been agreed to be excluded but to do so in as much detail as reasonably possible and to also include in as much detail as can be gathered the chattels that are included.
For example using Schedule A of the OREA form of Agreement of Purchase and
“Chattels included: The refrigerator in the wet bar being a white Kenmore serial # ______________, the refrigerator in the kitchen being a black Frigidaire serial # ___________, the dishwasher in the kitchen being a black Whirlpool serial #______________, the washer and dryer in the laundry room being stacked white Kenmore series with serial #’s ____________ and _________ respectively and the stove in the kitchen being a black Kenmore serial #_____________.
Fixtures Excluded: the dining room chandelier described as a tear drops crystal glass design, the green Alde shrub outside the master bedroom window aged approximately ___________ , and the glass on the family room fire place”
At first glance this clause may appear overloaded with information but as staging is becoming more and more popular buyers are becoming more wary and prone to assume substations in agreed inclusions. This detailed description gives the buyer comfort that he/she got what was bargained for and the detailed exclusion ensures that the buyer is aware of fixtures that do not form part of the agreement.
Remember to reinforce the golden rule to both parties always:
Fixtures stay unless you exclude them and chattels go unless you include them!
I hope this finds you Happy and Healthy!
All the Best!
Mark
A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
› E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com
