RBC report on Toronto GTA housing affordability

RBC report on Toronto GTA housing affordability

Toronto - more moderation in 2008

Affordability across Toronto deteriorated modestly for bungalows and townhomes and stabilized for condos and two-storeys. An overall improving affordability trend is expected in 2008 as new home and resale markets cool off amidst an increasingly lower mortgage rate environment. It is difficult to speak of the Toronto market without drilling into the different pockets of strength within the
city.

The core Toronto area remains tight and continues to bias the headline numbers up. Outside of the core, several other sub-regions will see a continued moderation in average house price growth in 2008.

To date, the condo market has proved quite resilient with house prices still growing at a 10% year-over year pace. However, a sizeable increase in supply coming to market over the next two years is expected to shave some of the excitement off price growth.

Read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Is the US Economy In or out of recession?

This is the RBC viewpoint on whether the U.S. economy is in or out of recession?

The pace of U.S. economic growth is expected to remain lacklustre in the near-term as the impact of the recent increase in the cost of borrowing weakens business activity; the housing market recession rolls on; and even the indefatigable U.S. consumer pares back spending on worries about the labour market, eroding net wealth, rising borrowing costs and more restrictive access to credit. Modest support will come from the trade sector — export growth is forecast to outpace imports as the past weakening in the U.S. dollar supports foreign demand for U.S.-made goods and lessens U.S. demand for foreign-made products.

Whether the economy falters is only important if the decline is deep and prolonged.

We believe that the third-quarter outlook is brighter because the large fiscal stimulus package passed earlier this year is likely to revive consumer spending activity.

We are assuming that about one-half of the more than $100 billion in tax rebates given to U.S. households will be spent mainly in the third quarter, boosting the annualized quarterly consumption growth rate by two percentage points and adding about 0.3 percentage points to 2008 GDP growth. This revival in consumer spending is expected to stem the weakening in the U.S. labour market. At the same time, the lagged effect of the Fed's aggressive easing campaign and more stable financial market conditions will shore up household balance sheets, setting the stage for stronger growth in 2009.

Read more about:

• Interest Rates
• Power of Sale Properties
• Price Trends
• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Tips for Tax time

With just a few more weeks to go before the April 30 deadline for filing your personal tax return, you can still be rewarded with a lower tax bill if you pay careful attention to all the available deductions and credits and how you claim them.

Here are some practical tips to help you reduce your tax bill.

Tax Filing Tips

• Are you an investor?
  You may be able to claim deductions for:
  
• Interest — If you've borrowed money that you're using to earn income from a business or property, such as common shares bought on the stock market, the interest you pay is generally deductible.
  
• RRSP contributions — If you made an RRSP contribution by March 1, 2008 and you have enough RRSP deduction room, you can claim the deduction on your 2007 income tax return or carry it forward, if doing this will benefit you more.
  
• Small business investment losses — If you or your company invested money in an unsuccessful "small business corporation" and you now have a capital loss on shares of the corporation or debt it owes you, the losses may qualify as "allowable business investment losses". Unlike other capital losses, this type of loss can be used to reduce income other than just simply capital gains, such as employment or investment income.

Are you a commuter?

• Commuters' tax credit — If you kept your monthly transit passes for travel after June 30, 2006 on local or commuter buses, subways and trains, remember to claim the new transit pass tax credit on your 2007 personal tax return. You may be able to claim the credit for monthly passes used by your spouse or child under 19.

Are you a business owner?

• Self-employment expenses — If you're self-employed, make sure you take advantage of all the business-related expenses that you can claim to reduce your taxes. These include automobile expenses, parking fees, business association fees, entertainment costs, convention expenses (a maximum of two per year), cell phone bills, depreciation on your computer and salaries paid to assistants, including family members. Remember that in most cases, you can deduct private health care premiums as a business expense instead of as a medical expense.

Are you an employee?

• Employment tax credit — If you are employed, remember to claim the new employment tax credit on up to $250 on your 2006 tax return to help cover your work-related expenses.

Do you have a family?

• Child care expenses — If you have qualifying child care expenses, you may be able to deduct $7,000 for each child under seven and $4,000 for each child aged seven to 16. The expenses have to be made to allow you or your spouse to work, carry on business, attend school or carry on grant-funded research. Usually, the lower-income spouse must claim the deduction.
  
• Charitable donations — If you're married, don't claim charitable donations separately — combine them and claim them on the higher-income spouse's return. The receipts can be in either spouse's name. If you donated public company shares to a charity after May 1, 2006, you will not have to pay tax on any capital gain on the shares.
  
• Pay your spouse's tax bill — If you earn income in a higher tax bracket than your spouse, consider paying your spouse's tax bill with funds from your own separate bank account. This will leave your spouse with more funds of his or her own for investments, on which he or she will pay a lower rate of tax than you would.
  
• Transfer your credits — If claiming certain non-refundable credits has reduced your federal tax owing to zero without using up all the credits, you may be able to transfer the unused amount to your spouse. Credits for charitable donations, tuition fees, education amounts, the age amount (for people over 65) pension income credits or disability credits can be transferred to your spouse's return, as long as you've used as much of them as you could.

Are you a student?

• Textbook tax credit — If you're a post-secondary student, you may be able to claim a new textbook tax credit on the amount of $65 for each month of 2007 that you qualify for the full-time education tax credit or $20 for each month you qualify for the part-time education tax credit. If you can't use all of this credit in 2007 you can transfer it to a parent or spouse or carry it forward indefinitely.

Did you move during 2007?

• Moving expenses — Moving expenses are often overlooked as a deduction. If you started working at a new location of employment or started a new business in 2007 and you moved to a home that is 40 km closer to your new work location than your old home was, you may be able to deduct many of your moving expenses, providing that the expenses were not reimbursed by your employer.

Do you have medical expenses?

• Medical expenses — If your family has medical expenses totalling more than 3% of your net income (or more than $1,885 if your net income is over $62,833), you may be able to claim a federal tax credit for all qualifying expenses above the threshold. Keep in mind that you can claim your expenses for any 12-month period ending in 2007 on your 2007 return. The list of qualifying expenses is long — check the CRA web site for more information.

Can't afford to pay your tax bill?

• Reduce late filing penalties — File your return on time even if you can't pay the balance owing. Doing this will eliminate the 5% late-filing penalty, though you will still have to pay interest on your balance. If you can't file your return on time but you know you owe taxes, making a payment by April 30, 2008 will help reduce late-filing penalties.

More information about moving expenses eligable for income tax deductions

Read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


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Seven Tips For First-Time Homebuyers

Seven Tips For First-Time Homebuyers

If you've ever thought about owning a home, now may be the time to take action. Lower interest rates combined with a large inventory of homes in most markets across the U.S. may translate into a good opportunity for buyers in negotiating the terms of a sale with a seller.

The home buying process may seem daunting to someone who has never purchased a home before. But, through home buying educational seminars offered in your community, and with the assistance of an experienced loan officer, a first-time home buyer can obtain a better understanding of their financing options, leading to a more positive home buying experience.

"Whether you've been dreaming of owning a home for years or you've just decided it would be a smart financial move to make, your first home buying experience will be a memorable one," says Jim Ferriter, executive vice president for GMAC Mortgage. "It's important to learn about your financing options in order to find the mortgage that's right for you."

Ferriter offers the following tips for first-time home buyers:

1. Educate Yourself About the Mortgage Process - By taking the initiative and learning about the mortgage process, you can be more confident in the financial decisions you are making. It's important to learn about different types of mortgages, how much you can afford, how your credit impacts your interest rate, and the benefits of home ownership. A mortgage tutorial is available at http://www.mississauga4sale.com/mortgage-qualifier-payment.htm, which breaks down the home buying process into easy-to-understand steps.

2. Save Just a Little Bit More - It's not only important to save money for the down payment and closing costs, but it's important to factor in some of the other costs of home ownership such as decorating, repairs and maintenance. Many mortgage lenders recommend that first-time home buyers have at least three to six months of additional savings in their possession in anticipation of these additional expenses.

3. Check Your Credit - An individual's credit score will have a significant impact on his or her mortgage loan approval and interest rate. A good first step in financing a home purchase is to check your credit history. You can request a free credit report from any of the three credit reporting bureaus: Equifax, TransUnion or Experian. Carefully review your report and contact the credit reporting bureaus to correct any inaccuracies.

4. Shop Around for a Mortgage Lender - As you start thinking and preparing for the home buying process, start shopping for the mortgage lender from whom you would like to obtain a mortgage for your new home. Because this process is new, it's easy to go with the first lender or loan officer you meet. Instead, take your time and shop around. Start by asking friends, co-workers and family members for recommendations. When you've identified two or three loan officers, ask for references. In addition to pricing (interest rate and closing costs), focus on customer service as well as other services and tools that a mortgage lender may be able to offer you.

5. Get Pre-approved - Before you start working with a real estate agent, consider contacting a mortgage lender to obtain a pre-approval credit decision. A loan officer will review your financial status, including your income, cash flow and credit score, to help you determine the maximum monthly housing payment for which you may be able to qualify, and, if qualified, "pre-approve" your mortgage before you've found a home. Armed with a credit pre-approval, you can start searching for homes with a much better idea of your price range, and in turn save time as you will know the right homes to focus on. Obtaining a pre-approval may offer more confidence and certainty to home sellers in your ability to purchase the home.

6. Don't Be Afraid to Ask Questions - Once you've found your new home, the mortgage lender will help you through the details of the loan process. From application to closing, your loan officer will work through the financing process with you, just as your real estate professional should do in the home buying process. Throughout the process, read all loan documents carefully, and involve an attorney, if necessary.

7. Inspect - Before you commit to purchasing a home, don't forget to hire a licensed home inspector to conduct a thorough assessment of the property. An inspector can alert you to any major problems with the home, and/or help you understand potential short-term and long-term home maintenance issues.

For more information about the process for buying your first home, visit http://www.mississauga4sale.com/buying.htm

Courtesy of ARAcontent
Read more about first time buyers in detail at my site

Read more about:

• Interest Rates



• Power of Sale Properties



• Price Trends



• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



• On-Line Real Estate Newsletter sign up



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GTA Real Estate Marketplace Very Eventful!

The last month or so has been very eventful in the GTA real estate marketplace.

• First of all, the Bank of Canada reduced the prime rate .5% last week. There has not been such a large drop since just after 911. Read More



• Secondly, the weather in the GTA has been a major player in slowing down our market somewhat, only time will tell, and soon, if our market will surge as it has in the past 13 years in March/April.



• Lastly, the US real estate market and economy is reeling from the sub-prime crisis. We are about 5 months into a recession in the US and most are predicting another 8 to 16 months of this. Read more about the Sub-Prime Meltdown

How much this will affect our GTA real estate marketplace and the Canadian economy in general is not known, but so far we are holding our own and many suggest that we will not feel the effects of the US slowdown and our economy will be fine for the short and long term. I tend to agree.

Read the latest Price Trends

Read more about:

• Interest Rates



• Power of Sale Properties



• Price Trends



• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?



• On-Line Real Estate Newsletter sign up



• See seasonal housing patterns

Do you need the services of an Independent Fire Code Inspector?

Tips to getting your possible non-compliant properties inspected by an independent fire code inspector

Today most Fire Departments are taking non-compliant cases straight to prosecution.

Compliance is now expected and failure to comply can result in fines and prison terms.

Last year the Office of The Fire Marshal starting promoting a Zero Tolerance Policy.

They are now putting on courses for fire department personal entitled "Walk Your Talk To Zero Tolerance" a one-day workshop enhancing a stronger enforcement approach towards compliance with the Fire Code. These courses are to explain the legislation, how to commence Court Proceedings and processes necessary for successful prosecutions.

This is why you need the services of an Independent Fire Code Inspector who is fully conversant with Fire Code issues. He will offer advice on the best method of attaining compliance before the authorities become involved, thereby eliminating the risk of prosecution and fines of up to $50,000.

To-day the services of a Home Inspector are considered a necessary part of any real estate transaction.
So too must the services of an Independent Fire Code Inspector be considered necessary for any transactions involving multi-unit income properties.

Other properties, such as retrofit addresses any building with 2 or more apartments, from the house with a basement apartment right up to the apartment building.

So for all your Retrofit needs remember The Fire Guy
"Who is here protecting you from Fire and The Fire Departments"

This article is courtesy of The Fire Guy

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website.

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
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 : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?
• On-Line Real Estate Newsletter sign up
• See seasonal housing patterns

Treehouse Monkeys REMAX TV Commercial

Another RE/MAX TV commercial, Enjoy!





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., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Current Mortgage Interest Rates

Following yesterday's Bank of Canada rate announcement, many mortgage lenders have lowered their prime lending rate to 5.25%.

Fixed rate mortgages remain stable.

Variable rate clients have benefited from this decrease - today's best variable rate is 4.65%.

With it's low rates, many borrowers are choosing the variable rate mortgage.

A few points to consider:

• Ability to switch to lenders fixed rate mortgage during term (without a penalty);
  
• Switching at 'best rate' vs posted rate;
  
• Mortgage payments - change with prime vs remain stable (make sure you have choice).

Please let me know how I can help you if you want me to put you in touch with lenders that offer these rates!

Mortgage Rate UPDATE
March 5th, 2008

Prime Rate………….5.25%
Variable Rate……….Prime less .60%
1 year closed……….5.20%
3 year closed……….5.85%
5 year closed……….5.69%*
7 year closed……….5.93%*
10 year closed……...6.00%*
25 year closed……...7.00%

Read more about Interest Rates

Read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns

Mortgage Interest Rate Specials

I know some mortgage people that are offering exception mortgage deals now that prime has dropped another .5%

1) 5.64% 5 year rate

CLOSINGS MUST HAPPEN BY MARCH 30th 2008.

Available on BFS and Rental NOT offered on fixed portions within the HELOC NOT offered on Pre-approvals For new purchase offers only

2) Prime rate is now 5.25%

That means qualified deals for ARM, High Ratio Rentals and High Ratio BFS rates are as low as 4.55% (Prime minus 70)

3) City of Toronto's increase to the Land Transfer Tax;

Solutions for Mortgages will take you to a lender who will now cover the cost of the tax for customers obtaining a new fixed rate closed mortgage with a term of 5 or 7 years, subject to the following:

• Maximum payout amount is $15,000 or 1.5% of the mortgage amount, whichever is less


• Applications must be submitted between November 22 2007 and March 11 2008, and must fund by March 21, 2008


• Offer is applicable only to Toronto properties which were affected by the new City of Toronto Land Transfer Tax


• Purchase transactions only
  

Eligible rates and terms as follows:

5 year Fixed Rate Mortgage with a rate discount of 1.01% off the posted rate
7 year Fixed Rate Mortgage with a rate discount of 1.22% off the posted rate
Not available in conjunction with any other offers
Funds are paid directly to the customer
Clients must be approved by this lender

4) Rate special on selected
short term mortgages

6 month term
1 year term
3 year term

5.25%
5.45%
5.39%

Conditions:
- For new business only

- No pre-approvals
- No rental or equity deals

-These special rates do not apply to refinances of existing business

Limited time offer.

Let me know if you are interested and I will put you in contact with these mortgage brokers.

Thanks

Mark

RBC reports Brighter outlook for second half of 2008

RBC feels that the second half of 2008 will be better than the first half of this year.

Brighter outlook for second half of 2008

While the near-term outlook for the U.S. economy is decidedly bearish, our view that the Fed will cut rates by another 100 basis points provides one of the supports for our call
that the economy will recover in the second half of the year. This recovery will also be aided by an expected $150 billion fiscal package that we are assuming will make its way through Congress shortly. The fiscal stimulus package is expected to include sizeable tax rebates that will reach U.S. households by the third quarter and provide a significant boost to growth.

At the same time, efforts by the government to curb the pace of sub-prime mortgage defaults are assumed to be successful in tempering financial market volatility, limiting additional spread widening and calming equity markets.

Doses of monetary and fiscal stimulus will be enough for the economy to regain upward momentum and we forecast real GDP growth of 3।9% in the third quarter and a more moderate 1.7% in the fourth. The combination of soft first-half growth and the stronger second-half pace will result in GDP growth of 1.4% in 2008, slower than the 2.2% pace in 2007 and our previous forecast the U.S. economy would expand by 2.1% this year.

http://www.mississauga4sale.com/TREBprice.htm

read more about:

• Interest Rates


• Power of Sale Properties


• Price Trends


• or Search the MLS and more at my website

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
›mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

• Thinking of selling in the next 3 to 6 months? Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?


• On-Line Real Estate Newsletter sign up


• See seasonal housing patterns