Tuesday, April 03, 2007

Canadian Federal Budget Highlights from last month


Canadian Federal Budget Highlights
Finance Minister Jim Flaherty delivered the 2007 Federal Budget on March 19, 2007. In case you haven’t had the chance to review all the proposed changes, here’s a brief overview of the key tax measures that may be of interest to you.

Please note that these proposed changes are not law at the present time. The following is provided for information purposes and should not be relied upon as tax advice. Please consult your tax professional.

Age Limit For Maturing Retirement Plans
It is proposed that seniors will have until age 71, an additional two years, instead of age 69 to convert their Registered Retirement Savings Plans (RRSP) and Registered Pension Plans (RPP) into retirement income plans such as a Registered Retirement Income Fund (RRIF). Moreover, seniors reaching age 70 and 71 in 2007 or 2008 will not be required to make the usual minimum withdrawals from their RRIFs and will be able to make RRSP contributions if they have contribution room. As well, RPP or Deferred Profit Sharing Plan (DPSP) annuity payments may be deferred until the end of the year in which the recipient turns 71.

Registered Education Savings Plan (RESP)
The annual RESP contribution limit of $4,000 will be eliminated, and the lifetime RESP contribution limit for each beneficiary will be increased to $50,000 from $42,000. The Canada Education Savings Grant (CESG) will be increased to $500 from $400 per year. If a beneficiary has unused grant room from a prior year, the maximum CESG for a year will be $1,000. The lifetime CESG limit of $7,200 will remain unchanged. The CESG increase will not be paid to RESPs until the relevant legislation has become law and the delivery systems are put in place. The requirements for part-time students to qualify to receive Education Assistance Payments (EAPs) from their RESPs will be relaxed.

Registered Disability Savings Plan (RDSP)
The Registered Disability Savings Plan (RDSP) is proposed to debut in 2008 and is intended to provide for the financial security of persons with severe disabilities. RDSP contributions will not be deductible and will not be taxable when withdrawn from the RDSP. Contributions can be made until the end of year when the beneficiary turns 59, subject to a lifetime maximum of $200,000. The government will match contributions to an RDSP with a Canada Disability Savings Grant of up to 100 percent, 200 percent or 300 percent, depending on family income. The government will pay up to $1,000 per year as Canada Disability Savings Bonds to RDSPs of beneficiaries with low or modest family incomes.

Registered Plan Qualified Investments Changes
The list of qualified investments for RRSPs and other registered plans is proposed to expand to include certain investment grade debt obligations and any security listed on a designated stock exchange, except any futures contract or derivative instrument where the holder’s risk of loss may exceed the holder’s cost. For example, many foreign exchange-traded funds will be qualified investments.

Public Transit Pass Tax Credit The 2006 federal budget introduced a non-refundable tax credit for monthly public transit passes. The 2007 budget proposes, effective the beginning of 2006, to extend the tax credit to weekly public transit passes and the upcoming cost-per-trip electronic payment cards, subject to certain conditions.

Real Estate Prices in the GTA
Toronto Real Estate Board (TREB) Average Prices and Graph

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

Monday, April 02, 2007

What is a second suite in a home in Toronto?


What is a second suite in Toronto?

A second suite is a self-contained unit (rental or rent-free) in a single-detached or semi-detached house. Most second suites are basement apartments. They have also been called granny flats, in-law suites and accessory apartments.

Are second suites new?

No! In the past, second suites were permitted in some areas of the City (York, East York, and parts of former Etobicoke, North York and Toronto). Some parts of the City have had a long experience with this form of housing. As well, provincial legislation, in force between July 1994 and November 1995, allowed for the creation of second suites in all areas of the province.

Why has it taken a year for the City's second suites by-law to come into effect?

In July 1999, City Council adopted the second suites by-law. This by-law was appealed to the Ontario Municipal Board (OMB) by a number of residents' groups and individuals. The OMB held a hearing on the appeals in February 2000. The OMB issued a decision in April approving the City's by-law but directed that two amendments be made. The amendments dealt with: (1) parking provisions in some neighbourhoods in the former Toronto, and (2) building alterations.

The final by-law was approved by Order of the OMB on July 6, 2000. As a result of the Order, the second suites by-law (including the amendments) is now in effect.

Where are second suites permitted in the City?

The new by-law permits second suites in all single-detached and semi-detached homes throughout the new City of Toronto -- with certain conditions.

What are some of the conditions that apply to second suites?

Some of the conditions include:

the second suite must be self-contained with its own kitchen and bathroom.

the house, including any additions, must be at least 5 years old;

the floor area of the second suite must be smaller than the remaining unit;

in most cases, homes with a second suite must have at least 2 parking spaces and parking can be in tandem (one behind the other). There is an exception for parts of the former City of Toronto (R2, R3 and R4 districts) where only 1 parking space is required for a house with a second suite. Please contact the City of Toronto's Urban Planning and Development Services Department to determine if a property is located in a R2, R3, or R4 district.

Before planning any changes to the outside appearance of a dwelling the homeowner should contact the City of Toronto's Urban Planning and Development Services Department; and

all new second suites must comply with the Ontario Building Code and require a building permit. Existing second suites must comply with the Fire Code as well as zoning and property standards.

How can I find out if an existing second suite complies with the regulations?

The unit will have to be inspected by Fire Department staff. There is a fee for the inspection and you may be required to upgrade the suite to meet the code requirements and other standards. Contact the City's Urban Planning and Development Services Department for more information (see phone numbers below).

Does the City provide grants or loans to encourage the creation of second suites?

There is currently no grant or loan program for second suites. The City is discussing the potential for a program with senior levels of government. TREB's Government Relations staff is monitoring this initiative and will inform members if the City implements a program.

Will a second suite impact property taxes?

In most cases, there will be little impact on property taxes. A major exception would be where the second suite is created by constructing an addition, thereby significantly adding to the value of a house.

For specific zoning, property standards, or fire and building code questions please contact the City of Toronto's Urban Planning and Development Services Department:

East York
(416) 397-4591

Etobicoke
(416) 394-8055


North York
(416) 395-7000


Scarborough
(416) 396-7071

Toronto
(416) 392-7522


York
(416) 394-2535


Article courtesy of TREB www.torontorealestateboard.com

Read more about basement apartments in Mississauga



Toronto Real Estate Board (TREB) Average Prices and Graph

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

Sunday, April 01, 2007

For Sale Signs are now posted in windows of condo buildings!

See where they are posting for sale signs in Manhattan!

does this look like a typical street in your neighbouhood?



and this conflict of duty






just playing around a little on April Fools Day, all the best! Mark

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Saturday, March 31, 2007

Royal Bank RBC Economics Research - PROVINCIAL OUTLOOK - Latest Edition


Rebalancing regional growth patterns
Our provincial forecasts are more rooted than ever before in the strength of our conviction that the gap between growth in the more heavily resource based provinces and central Canada will narrow during 2007-08.
There are four key reasons for this.

First up is fiscal policy, which has tilted in favour of stimulating central Canada with the recent federal budget funding a federal government spending surge in Ontario. Some of this will begin to flow in 2007, while much of it will carry on for many years. On the heels of Quebec’s election on March 26, six other provinces and the feds are heading towards elections either this year or next (all but British
Columbia, Nova Scotia and New Brunswick).

Despite higher federal transfers that are likely to be put towards tax relief, Quebec actually gets unfairly criticized for overspending when, in fact, its rate of growth in program spending has been the second weakest of all the provinces in the past four years. British Columbia opted for consumer-oriented tax relief in its budget and has had the weakest spending growth of all provinces. The remaining question mark is Ontario’s government, which appears to have exercised some spending restraint but may be lowballing revenues to leave room for pre-election off-budget spending.

Second is the investment picture where the gap between the west and central Canada is likely to become more balanced. According to Statistics Canada’s
recent investment intentions survey, the country is in the middle of an investment
surge, albeit one that is moderating and with the public sector doing much
of the heavy lifting. This survey was done before recent budgetary measures
that add to private-sector investment incentives, particularly for manufacturers
that now face two-year write-offs on equipment spending.

Third, we firmly believe that central Canada’s manufacturing base will stabilize and that its export prospects will improve. Strong global growth, overblown concerns about the health of the U.S. economy, an expected depreciation in the currency and sustained lower-than-peak commodity input prices should all gradually turn central Canada’s manufacturing base around except for labour-intensive
sectors facing a China-related market share battle for U.S. imports. A cooling
in U.S. dollar-denominated commodity prices will still leave room for attractive
exploration, appraisal and development activity across the west.

Fourth, despite concerns about the phasing out of accelerated depreciation on oil sands projects, the impact won’t be felt for many years, if at all, given current project commitments. The near-term focus remains on those factors pointing to moderately weaker growth prospects in the energy-rich provinces — cooler
commodity prices causing weaker provincial royalties and surpluses, softer profit
growth and less upward pressure on wages. For the prairie provinces, attractive
mining and hydro prospects, a decent early read on crop conditions and farm
subsidies in the recent federal budget should further assist near-term growth.
For our latest macroeconomic and financial market forecast report, go to: www.rbc.com/economics/market/pdf/fcst.pdf

Source: "Financial Markets Monthly", Economics Departnment, RBC Financial Group.

Read more about the economics of real estate in Ontario and the GTA

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Friday, March 30, 2007

Can the Media drive Real Estate Market Prices Down?


What is the impact on the media on the real estate markets?

I think you will find this an informative perspective on the real estate market, but a long article to read. I found it a very interesting article because it echo's the sentiments down in the US and these types of articles seems to rear their head because the markets are very soft throughout the US.

When our Canadian markets last experienced a downward trend, from about 1990 to 1994, there were many negative articles about the state of the real estate market and I believe that this had a very strong influence on people's decisions to NOT purchase a home or even make a move. I firmly believe that the press influences if not drives our real estate marketplace in the GTA. The next time there is some skepticism in the press, just watch how the local real estate market stalls.

Enjoy, your comments are always appreciated!
Mark

Media coverage can dampen real estate market

Fact or fiction: The media decides whether you buy or sell a home.

Sounds ridiculous, even insulting. But many real estate professionals insist there is a psychological component to buying a house -- and that a lot of negative publicity about the housing market can have an effect on whether consumers will buy, sell or sit.

Chances are, when you are thinking about buying a home (and you're really honest with yourself), factors such as your credit rating, income, debt load, the available houses in your market and the prices in your market are going to have more of an impact than what you read or hear over your morning coffee.

But that's not to say the broadcast and printed word don't have some impact.

Many blame the media for the slowdown that hit the housing market in 2006. "What happened to us is the media," says Ellen Renish, regional vice president for the National Association of Realtors, or NAR.

Stories about a real estate "bubble" and its potential to burst caused consumers to "not do anything," she says. "And nothing happened. The bubble stories really stopped things for three months," Renish says. "It was pretty scary."

Looking for deals

When it comes to sales, the biggest factor is "the local economy," says Dick Gaylord, president-elect of the NAR. "But I can tell you that almost every buyer I talk to today thinks they're going to get a phenomenal deal."

In the Midwest this year, one big yardstick is job growth torquing the force of supply and demand. "If jobs come, there will be buyers," says Lawrence Yun, a senior economist with the National Association of Realtors. "And if jobs don't come, there won't be buyers."

"But I think the media does have an influence," he says. "I get calls from Realtors who have been working with buyers for months -- then the buyer reads or hears something that predicts a price crash or large inventory and the buyer decides to wait. The media is trying to portray the reality of the market."

But many times "there tends to be a slight slant that tends to scare potential buyers," he says. "People start placing a lot of reliance on what they read, particularly from major papers."

This is one reason it pays to investigate on your own. Especially since neighborhoods and price ranges in various areas of a region, state and town can be vastly different.

Also, talk with a couple of pros in your area. "You might find out that the market is better than you were led to believe in the press," says David Ledebuhr, regional vice president for the National Association of Realtors.

The long-range view
Real estate professionals would like to see more of the long-range perspective in real estate media coverage.

The real estate market is cyclical, says Ron Phipps, broker for Phipps Realty in Warwick, R.I. "For those of us who've been doing this for a while, this is a normal cycle," he says of the current buyer's market climate. "It's not particularly bad."

He worries that the media "amplifies minor changes," he says. "The media is like the wind: It creates white caps, it creates a lot of excitement -- which can cause people to be overwhelmed."

While talk of a real estate bubble "is great theater," the hard fact is that most people buy a home to have a place to live, Phipps says. The price will differ according to what a buyer can afford, but that basic need is always there.

Real estate professionals have also seen a wide range of interest rates in the past two or three decades. And while nobody likes to see climbing rates and the bigger mortgage payments that result, some agents remember when rates for a typical home were in the teens. And, they also remember that lower home prices added some balance to the equation.

"I sold houses when the rates were 16, 18 percent," says Renish.

"And I bought my first house at 9 percent," she recalls.

What part does the economy play?

From a practical standpoint, many of the areas of the country that are seeing depressed growth or declining prices can link it to one or more of several factors: a shrinking jobs market or faltering local economy (including a higher number of foreclosures); overbuilding; or speculators who bought to make income or quick profit and dumped the properties when interest rates started to rise or prices started to decline.

Mike Fratantoni, senior economist with the Mortgage Bankers Association, agrees that jobs are the No. 1 factor when it comes to the health of the home market. "Absolutely, the job market is most important," Fratantoni says. "And we think that the Fed's successive rate increases have not quite worked their way through the economy yet. We do anticipate that as these work into the economy, we will see some slight increase in unemployment," likely by the middle of 2007.

And while the media likely has "some psychological aspect" for the buyer and seller, says Fratantoni, "at the end of the day it's the fundamentals" like affordability, a strong job market and income growth that signal buyers that "it's a good time to get in," he says.

When it comes to buying and selling, "I do think there is something about psychology," says Nicolas Retsinas, director of the Joint Center for Housing Studies at Harvard University.

Nationally, home prices increased 60 percent in the period between 2001 and 2006, he says. "If you bought a home five years ago, you're in pretty good shape as far as equity building."

When it comes to the recent decline, "part of it was psychology," Retsinas says. "We had seen interest rates heading up. As we look back, at some point buyers started to wonder, 'Will these exist tomorrow?'"

In addition, home prices had been escalating so much faster than salaries that "the mortgages couldn't bridge the gap between incomes and house prices," he says. "It's almost as if house prices had to take a breather."

All real estate is local
One common complaint from real estate professionals regarding media coverage is the failure to understand and communicate that all real estate is local. So while a bubble, hot market, flipping trend or price decrease gets a lot of media attention, it doesn't mirror the entire market.

"It's a reflection of something going on in one area, in one dynamic spot," says Dave Dalzell, a regional vice president for the NAR. But consumers hear it and get concerned, he says. Then "we have to take and analyze the neighborhood" where they're buying, he says. "My town just had the biggest jump in home values in 20 years," he says. "We think it will slow down some, but won't lose money."

Ken Libby, owner/broker of Stowe Realty in Stowe, Vt., echoes the thought. "The only argument I have with the media is when people try to paint one picture for the whole country," he says. "And you can't do that." By Dana Dratch • Bankrate.com

Read more about the real estate market trends and current status.



Toronto Real Estate Board (TREB) Average Prices and Graph

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

Thursday, March 29, 2007

3 Steps to take before you purchase your first or next home


This article will outline the 3 steps to take before you buy your first or next home

A little time spent shoring up your credit, crafting your budget and organizing financial documents will go far in smoothing the way to a home purchase. Ideally, you can start working on your home-buying project before you even start shopping for homes. Keep in mind that most buyers take eight weeks to actually shop for a home, according to a survey by the National Association of Realtors. Your financial prep work should start well ahead of those eight weeks.

"My advice is to start to talk to your local Realtor six months ahead of time," says Pat Vredevoogd Combs, a practicing residential broker in Grand Rapids, Mich., and president of the National Association of Realtors. "Most have a good handle on mortgage people in the area. And, there are a lot of really cool mortgage programs out there for first-time buyers."

3 steps to take before applying

1. Get your credit in shape.
2. Organize your documents.
3. Check your budget.

For example, Combs says some local governments will offer interest rate or down payment subsidies to buyers who agree to buy a home in certain areas. And governments or employers may subsidize teachers, fire fighters, police officers, nurses and other service professionals who have difficulty affording a home in high-priced communities. A hospital trying to recruit and retain nurses, for example, might offer a down payment loan, which is forgiven and turned into a grant if that nurse remains employed with the hospital for several years, says Combs.

Before you begin your house hunting, there are three important steps to take to make sure you are eligible for the best interest rates and to make the mortgage application process a breeze.

1. Get your credit in shape: Order your credit reports
One of the first steps any prospective buyer should take is to take advantage of the free credit reports everyone is entitled to request annually, thanks to federal law. While there are many sites on the Web offering "free" credit reports, many of those offers require that you sign up for a free trial of a credit-monitoring service that will cost money if you fail to cancel during the free trial period. The official site where you can get free, no-strings-attached credit reports annually from the Equifax, Experian and TransUnion credit bureaus is www.annualcreditreport.com. You can receive one free credit report from each of these three agencies every year.

David Reed, an Austin, Texas, mortgage banker and author of "Mortgage Confidential: What You Need to Know That Your Lender Won't Tell You," says you should review each of those reports for errors. There could be mistaken entries noting late payments or account information that belongs to someone else. Common names sometimes get mixed up on credit reports, as do "Juniors" and "Seniors" in the same family.

"I see that a lot," says Reed.

If you spot an error, you should write to that specific creditor and request a correction. Bankrate has a work sheet to help you request and track corrections on each of your credit reports.

How's your credit?
While paying down your credit card balances will improve your financial picture, this is not the time to close credit accounts because reducing the amount of credit available to you can actually lower your credit score.

"Don't assume you should just get rid of it," says Combs.

If you already own a home and have an existing home equity line of credit, or HELOC, Combs recommends that you not get rid of it in preparation for a new home purchase. "I think you ought to leave it alone. Sometimes buyers are going to need it; they can use it as an easy bridge loan (to cover the down payment temporarily until you sell the old home) so they don't have to go through the trouble of getting one."

2. Organize your financial paperwork
You also should gather up all the financial documents that a lender will need when you submit an application. They include copies of your income tax returns, W-2 wage statements, paycheck stubs, bank and investment account statements, divorce decrees and child support documents and recent credit card statements. Having those documents handy will also help you put together a realistic budget and help you figure out what you really can afford to pay as a down payment and toward subsequent monthly payments for mortgage principal and interest, plus property taxes and insurance.


Documents to gather:

• Tax returns for the past two years.
• Two most recent pay stubs.
• Most recent credit-card statements.
• Most recent bank and investment account statements.
• Divorce decrees and child support documents.
• Your budget.

3. Craft a budget: How much house can you afford?
There is a difference between the maximum payment a borrower can qualify for -- which can sometimes be surprisingly high -- and the amount you can comfortably afford, says Combs.

"Each person has to know the difference in his own mind," she says. "If you're just getting by with your current rent payment, and the lender says you can qualify for more, give it some thought."

However, first-time buyers, in particular, often don't know how the tax-deductibility of mortgage interest and property taxes can help offset a mortgage payment that is higher than their rent. A good real estate agent can help you figure out the bottom line.

Keep it steady
Once you're closing in on your purchase, and especially after you've applied for a mortgage, do your best not to change your financial picture. "When you sit at the closing table, you will be asked to sign a document that says your credit is the same as it was when you originally applied for the loan," says Combs.

If at all possible, put off job changes. Lenders like to see a steady history of employment and frown on job changes while your application is pending, unless the new job is in the same field and at the same or greater pay. By Elizabeth Razzi • Bankrate.com Elizabeth Razzi is a freelance personal finance reporter and author of "The Fearless Home seller." She is based in the Washington, D.C., area.

Read more about the steps to buying a home

Toronto Real Estate Board (TREB) Average Prices and Graph

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

Wednesday, March 28, 2007

Do I have to pay GST on a resale residential Purchase?


GST and the Resale Home

You don't have to pay GST on the purchase price of a used residential home. In other words, the purchase is "exempt" form GST.

Revenue Canada defines "used residential property" to include a previously occupied house, condominium apartment, summer cottage, vacation property or non-commercial hobby farm. They refer to "used" as residential property that has been occupied as a residence before you bought it.

Used property can also mean a recently built house hat is substantially complete and has been sold at least once before you buy it. For example, if a new house is purchased and resold before being occupied, the home's resale price will normally be exempt from GST.

An owner-occupied home is considered a residential property when it's used primarily as your residence. So, if you are self-employed and purchase a resale home that includes a room used as an office, the entire home still qualifies for the GST exception.

However, if your owner-occupied home is not used mainly for residential purposes (for example, a retail store with a small apartment upstairs), only the residential portion is exempt from GST on resale. The non-residential portion of the purchase price is taxable.

If you are planning to purchase a resale home, the seller can supply you with a certificate stating the property qualifies as "used" for GST purposes.

As with most taxes, there are exceptions to the GST rules regarding resale housing. For instance, most sales of real property by charities, non-profit organizations and other public service agencies are exempt form GST. Contact your REALTOR for additional information.

Read more about GST and buyer costs
Toronto Real Estate Board (TREB) Average Prices and Graph

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

Tuesday, March 27, 2007

Healthy Spring Market Ahead - RE/MAX forcast


Re/Max forecasts heated spring market Mar 21, 2007

Higher housing values, tight inventory levels, and all-out bidding wars have yet to deter first-time buyers in major Canadian centres this year, says a new report by Re/Max.

“Buyers are finding the means necessary to enter the market, even in the western provinces, where double-digit price gains have been reported and sales to listings ratios hover above the 80 per cent mark,” says Elton Ash, regional executive vice-president, Re/Max of Western Canada. “Purchasers simply refuse to be priced out of the market, even though household income has not kept pace with housing appreciation. Something’s got to give – and the trends identified in this report show it’s the how, what, where and when of the equation.”

The Re/Max Affordability Report, which highlights first-time buying activity and trends in 13 housing markets across the country, says that substantial price increases have had little impact on buyer intentions. The greatest year-over-year price appreciation is in Edmonton, Calgary, Saskatoon and Kelowna, where averages rose 52, 29, 26, and 23 per cent respectively. Average price in the country’s most expensive market – Greater Vancouver - has jumped 11 per cent, topping the half million-dollar mark.

While prices in these markets may now seem costly, entry-level product such as condominiums can start at half the average price, says Re/Max.

Condominiums now represent just under one in every two sales in markets like Vancouver and Victoria. In Edmonton, Calgary, and the Greater Toronto Area, close to one in every three sales involve a condominium apartment or town home. In smaller markets like Saskatoon, Regina, and Winnipeg, condominiums are gaining momentum. Condominium sales represent approximately 12 per cent of total residential sales in Halifax-Dartmouth and Ottawa, says the report.

“Low interest rates and solid economic performance in most major Canadian centres have also played a substantial role in providing purchasers with the confidence to go out and buy their first home,” says Michael Polzler, executive vice-president and regional director, Re/Max Ontario-Atlantic Canada. “Yet, in some centres, there are other motivating factors at play. Price increases, for example, are a reality in the marketplace. One year can set you back – from location to house size – and your dollar just doesn’t have the same purchasing power.”

Re/Max says innovative financing has allowed a growing number of first-time buyers to enter the marketplace. New mortgage products with longer amortization periods are helping to make mortgage payments easier to carry, the company says.

The offloading of family wealth and inheritance are also factors influencing home-buying activity, says Ash. Some first-time buyers are digging into RRSPs and borrowing money from parents, while others are looking to offset carrying costs through in-law suites, now factored into debt service ratios by a growing number of lending institutions.

“Despite a decade of year-over-year price increases, compounded by challenging market conditions this year, entry-level buyers continue to be a driving force in real estate,” says Polzler. He says, “Their undaunted enthusiasm is expected to translate into sales at or ahead of last year’s record levels in the spring.”

This makes sense, Read more about the spring market cycle

Toronto Real Estate Board (TREB) Average Prices and Graph

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

You can be "Mortgage Free" sooner than you think


You can be mortgage free sooner than you think

(NC)-Are you feeling weighed down by the years remaining on your mortgage? Worried about when you should lock in your variable rate, or unsure of refinancing with rates on the rise? Getting a good interest rate is crucial, but there's a lot more you can do to ensure that you are mortgage free sooner. Flexibility and options are key - and the advice of an unbiased mortgage professional can help you make the most of these alternatives.

The experts at Mortgage Alliance suggest the following:

1. Match your mortgage payments with your pay periods. Not only does it make budgeting easier, but if you have bi-weekly payments you'll be making an extra payment each year (and you won't even feel it!)

2. Shorten your amortization. If you can budget for the higher monthly payments, this will help you build equity faster and take years off your mortgage.

3. Use your pre-payment option. Many people get a mortgage with this feature, but only 3% actually take advantage of it. A few hundred here and there can add up to thousands saved later on.

4. Income increasing? Consider permanently increasing your payments to match. Again, you won't feel the strain, but your equity is increasing and interest decreasing with every extra dollar you put in.

5. Most mortgages allow a lump sum payment in any one calendar year - and if you don't use it, you lose it. Just because you don't have a huge sum to put away doesn't mean it isn't worth it. Even small extra payments could pay big dividends later.

6. Shop around for better terms at renewal. Although it seems easier to just sign the form your bank sends, most people renew at rates higher than what they could have achieved if they had negotiated. Your mortgage professional is not just there for the purchase, but throughout the life of your mortgage.

Information provided by Mortgage Alliance. Visit www.rightmortgage.ca or call 1-877-366-3487 to find out more. Credit: www.newscanada.com

http://www.mississauga4sale.com/Lock-In-Short-Term-Long-Term-Mortgage.htm
Toronto Real Estate Board (TREB) Average Prices and Graph

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

Sunday, March 25, 2007

Basement Apartment requirements and considerations


Basic requirement for legal basement apartment in Toronto

There is no single government authority, which provides written certification that any given basement apartment is legal. Smart real estate agents never list a house as having a legal basement apartment since they do not want to guarantee that the basement apartment complies fully with all the applicable fire codes, building codes, Electrical Safety Authority regulations and zoning and housing standards by-laws.

The Ontario Building Code which prescribes minimum requirements for the construction of buildings is a code that applies only when the house was built. The building code changes over the time but for the most part, it does not apply retroactively.

The fire code which prescribes construction and safety issues as they relate to how the building is required to perform should it catch fire, can apply retroactively.

Here are few basic requirements for a legal basement apartment in Toronto :

(1) The detached or semi detached house must be at least 5 years old.

(2) The front of the house cannot be significantly altered to change its appearance from that of a one unit building.

(3) Basement unit must be smaller than the other units.

(4) Minimum ceiling height is 6'5". Ceiling must be continuous. Suspended (T-bar type) ceilings and exposed joists are not acceptable. Furnace room ceiling must be dry walled or plastered too.

(5) Doors must be solid wood or metal and minimum thickness is 1.75". Exterior door must be at least 32"x78". The smallest dimension of the window is 18" and the opening must be at least 600sq in. Windows must be within 3' of ground, and if there is window well it must extend 3' from the house wall to allow room to crawl out.

(6) Bathrooms have to have either a window or fan

(7) In most areas an additional parking space is required for new apartments.

(8) New apartments require building permits before construction begins.

(9) The property owner is responsible to make sure that smoke alarms are installed and maintained.
Carbon Monoxide alarms are required under many Municipal By-laws. They are to be provided in each dwelling unit in a building containing a fuel fired appliance or an attached garage. Even if they are not required by legislation they make good sense with to-day's design methods providing for air-tight construction of dwelling units.
Smoke alarms must be installed in each dwelling unit on every floor including those containing a bedroom or sleeping area. The alarm must be audible in bedrooms when the bedroom doors are closed. The smoke alarm may be battery operated or connected to an electrical circuit with no disconnect switch between the over current device and the smoke alarm. Interconnected smoke alarms may be required if:
· 15 min. Fire Resistance Rating is used between dwelling units
· one dwelling unit must exit through another dwelling unit
If required, interconnected smoke alarms must be installed in every storey above and below grade in each dwelling unit, and in every shared means of escape where applicable. These alarms must be audible in bedrooms when the intervening doors are closed.

(10) An electrical inspection by Electrical Safety Authority and all the deficiencies identified during the inspection must be addressed. Owners should retain the letter of compliance received from the Electrical Safety Authority for future reference purposes. This letter must be made available to the Chief Fire Official upon request.
(11) A continuous separation with a 30 min. Fire Resistance Rating is required between dwelling units and between dwelling units and other areas. This may be provided by existing membrane of lath and plaster or gypsum board.
Openings in Fire Separation shall be protected with rated doors installed in hollow metal or solid wood frames and equipped with self closing devices
Lesser degrees of Fire Resistance Rating may be acceptable with the provision of interconnected Smoke Alarms or Sprinkler Protection. The containment features are intended to provide protection for the occupants living in a dwelling unit from a fire occurring in another portion of the building, outside of their control.


(12) A single means of egress - provision for the escape of persons from each dwelling unit in the event of fire - may be acceptable if the following conditions are met:
· It is properly separated with a 30 min. Fire Resistance Rating
· The flame spread rating of means of escape does not exceed 150 (wood paneling is unacceptable)
· The means of escape does not involve entering another dwelling unit or other occupancy and leads directly to the outside at ground level.
Two means of escape are required if one means of escape is through another dwelling unit. An existing means of egress may be acceptable if the building is sprinklered.
By Nalliah Thayabharan
Registered Home Inspector. Member of OAHI & CAHPI-Ontario
ASHI certified Inspector.
Expert Building Inspections Ltd
905 940 0811 www.expertinspector.com

You may wish to read more about basement apartments in Mississauga

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