Home Staging, is it a good Idea?

Why Should you Invest in Home Staging?

A study by the National Association of Realtors in 2007 showed that 84% of today’s busy home buyers use the internet as a major tool in their home search. Buyers view online photos and virtual tours of properties in their desired location and price range to come up with a short list to actually view. If the buyer is not enticed, by the pictures or during a drive by, chances are they will not view the property and if they don’t view your property, they’re not going to buy it. You can’t change its location or size, but you can enhance its presentation.

As soon as the sign goes on the lawn, your agents job starts; the appraisal is done, photos are taken, property feature sheets are prepared, and the marketing begins, to show off your house on the real estate agents tour, open houses, viewings and advertising. You know the expression; “you only have one chance to make a first impression”.

Your home is probably your biggest investment, you want to maximize your return on investment and protect your equity. Should your property remain on the market for an extended period of time, the cost of home staging would be less than a price reduction, additional mortgage payments, taxes, insurance and utility bills, not to mention the inconvenience of not being able to move on.

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.com8 Website : Mississauga4Sale.com

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What is new in Canadian Income taxes for 2009?

Good morning,

I thought that I would pass along this article to you about taxes and what's happening in the marketplace in 2009 with income taxes.

There are some good ideas and suggestions below.

Have a nice weekend

Enjoy!
Mark

What is new in taxes for 2009?

Personal tax changes

Tax-free savings account (TFSA)

-	Canadian residents aged 18 or over can contribute up to $5,000 per year to this account, beginning in 2009, with unused contribution room being carried forward.
-	The $5,000 annual contribution limit will be indexed to inflation in $500 increments.
-	Contributions are not tax deductible.
-	Investment earnings and capital gains will accumulate tax-free.
-	Withdrawals will not be subject to tax.
-	Withdrawals will create contribution room for future savings.
-	Income and withdrawals from a TFSA will not affect eligibility for federal income-tested benefits and credits (e.g. guaranteed income supplement, age amount tax credit).
-	Contributions to a spouse's or common-law partner's TFSA will be allowed, subject to the contribution room of the spouse
-	TFSA assets will be transferable to the spouse's TFSA upon death.
-	Qualified investments will include all arm's-length RRSP qualified investments

It may be better to contribute the maximum to a TFSA before contributing to an RRSP, in order to use for saving for a house, education, or retirement. One of the advantages of the TFSA is that it will not be considered taxable income. If funds are withdrawn in retirement, this will not affect the Guaranteed Income Supplement or other income-tested benefits, and would not cause a claw back of Old Age Security, or a reduction of the age exemption.

Life income funds (LIF)

These three provisions were included in 2008 budget, and will apply to federally regulated LIFs:

1. Individuals 55 or over with LIF holdings of up to $22,450 will be able to wind up their accounts with the option to convert to a tax-deferred savings vehicle.

2. Individuals 55 or older will be entitled to a one-time conversion of up to 50% of LIF holdings into a tax-deferred savings vehicle with no maximum withdrawal limits.

3. All individuals facing financial hardship (low income, high disability or medical-related costs) will be able to unlock up to $22,450.

The threshold of $22,450 in #'s 1 and 3 will increase with the average industrial wage.

Other changes relating to personal income tax and GST/HST:

-	Rewording of the Income Tax Act s. 118.2(2)(n) to ensure that the cost of non-prescription medications will not be considered eligible medical expenses after February 26, 2008. See our article on non-prescription medications.
-	Registered Education Savings Plans - the time they remain open will be extended to 35 years from 25 years, and the contribution period will be increased by 10 years.
-	Eligible expenses under the medical expense tax credit will be expanded.
-	The residency component of the northern residents deduction will be increased by 10%.
-	GST/HST will no longer be payable on costs of training to help individuals cope with disabilities or disorders, such as autism.
-	The list of GST/HST-free medical and assistive devices will be expanded, to include other items, such as service dogs.
-	Tax Back Guarantee - $2 billion in annual interest savings by 2009-10 will be dedicated to ongoing personal income tax reductions.

Business tax changes

-	Record-keeping requirements for automobile expenses and taxable benefits will be reduced.
-	Manufacturing and processing sector - accelerated capital cost allowance (CCA) treatment for investment in machinery and equipment will be extended for three years. The 50% straight-line accelerated CCA will be extended for one year, and the accelerated treatment will then be provided on a declining basis over a period of 2 years.
-	Scientific research and experimental tax development program will be improved.
-	Cross-border tax withholding and return-filing rules will be streamlined.
-	Mineral exploration tax credit extended for an additional year.
-	CCA rates to be increased for carbon dioxide pipelines.
-	Accelerated CCA for clean- energy generation equipment to be expanded to include additional applications involving ground source heat pump and waste-to-energy systems.
-	GST/HST relief extended to land leased to situate wind- or solar-power equipment for the generation of electricity.

Seniors

The Guaranteed Income Supplement (GIS) is an income-tested benefit, and is reduced by 50% of other income received, except for employment earnings. The exemption for employment earnings is 20% of earned income up to $2,500, providing a maximum exemption of $500. The budget proposes to increase this exemption, and fully exempt all employment earnings up to $3,500 per year.

Students

Canada Student Grant Program

-	Students from low and middle income families will qualify based on clearly defined income thresholds.
-	Program will provide monthly grants of $250 for low-income students and $100 for middle-income students.
-	The grant will be paid through all years of an undergraduate or college program.

Hope this article helped you!

Mark

CMHC predicting more choice equals moderate price growth in 2009

Mid-November Resale housing market update in the Greater Toronto Resale

This is a mid month market update for the GTA Resale Housing Market Mid-November

November 19, 2008 -- Greater Toronto REALTORS® recorded 1,991 resale transactions during the first half of November 2008 from 3,544 sales recorded during the same period a year ago, Toronto Real Estate Board President Maureen O'Neill announced today. This is down by about 45%.

The Greater Toronto Area year-to-date figures show 70,474 sales in 2008 from 84,994 recorded during the same period in 2007. This is down by about 13%

The year-to-date average price was recorded at $380,470 in 2008 from $374,678 in 2007. Up about 1.5%

In the 416 area, 830 homes changed hands in the first two weeks of November from 1,643 transactions recorded during the same time frame a year ago. This is down by about 50% year over year

The year-to-date figures show 28,126 compared to 35,045 recorded in 2007. This is down by about 20%

In the 905 Region there were 1,161 sales during the first half of the month from the 1,901 transactions recorded at mid-November 2007. This is down by about 42%

The year-to-date figures show 42,348 compared to 49,949 recorded in 2007.

In the first two weeks of November 2008, the average price of a home in the GTA was $375,712 compared to $393,084 recorded a year ago.

'It's particularly important to interpret the 416 area statistics in context given the market surge we saw a year ago when buyers moved to avoid the new Toronto Land Transfer Tax," said Ms. O'Neill. "At midmonth a year ago, transactions in the 416 area had increased 24 per cent over the same period in 2006."

In the 905 Region the average price is currently $358,130 from $358,610 recorded a year ago. During the first half of November 2006 the average price was recorded at $336,576.

In the 416 area, homes are currently selling for an average of $400,305 from the $432,972 average recorded during the same time period in 2007. An average price of $383,029 was recorded in the first two weeks of November 2006.

"As an investment, a home not only offers shelter and an environment in which life's most important moments are shared, but also offers financial appreciation in the long term, said Ms. O'Neill."

Currently there are 27,562 homes listed for sale on the TorontoMLS system compared to a year ago when 20,173 properties were available. As such, the average time homes are remaining on the market is 41 days from 31 days in 2007. Sellers are currently achieving 97 per cent of their list price.

When you look at our market overall for the first few weeks of November, our market is down in almost all areas. There is no doubt that our marketplace is experiencing a softening and this trend will likely continue at least until January of 2009 I say this because it's typical for our market to soften in late November and December, see the 'normal' fluctuations at this graph:
http://www.mississauga4sale.com/TREBavg1995date.htm

Please let me know if you have any questions.

Mark

GTA MLS Sales Predictions for 2009

This chart shows historic and predicted MLS sales in the GTA for 2009 by CMHC
They are predicting that we will have about 75,000 in 2009 a drop of about 7000 from the number of sales in 2008

CMHC Outlook for GTA Resale Housing Market

In case you missed it, here is a report from CMHC about our housing market.

Here are some high-lights from CMHC and their thorough report:
For your information, please find attached the latest Housing Market Outlook data for GTA (Fall 2008 edition).

1. The New Homes and sales Market
i) High rise sales will dominate new home market...
- New home sales in the Greater Toronto Area (GTA) will continue to moderate in 2009.
- High rise sales have accounted for more than 50 per cent of the total share of sales since the end of 2007. This trend will continue and the share of high-rise sales will increase in 2009.
- New home sales will trend lower as choice increases in the resale market.

- The low-rise housing sector will experience moderating sales much more so than the high-rise sector.
- Strong immigration into the GTA has also played a role in increased demand for condominium apartments, due to their lower price point.
- Changing demographics in the GTA also explain the heightened interest in the high rise market. The average household size is shrinking with an increase in lone-parent and childless family households.
- The luxury high-rise market is also a growing niche that is catering to an increasing number of aging baby boomers and empty nesters.

ii) Starts of resale homes to edge down.
- Softer local economic conditions and elevated home prices will push the demand for home ownership lower.
- Following a healthy increase for 2008, total housing starts will edge lower by 21 percent in 2009.
- Low-rise home starts will decline at a greater rate than apartment starts.
- Condominium apartment completions have begun to trend higher and will grow at a stronger rate in 2009. For this reason, condominium apartment construction will remain at high levels through the end of next year.


2. Existing resale Home Market
i) Existing home sales off the peak...
- Over the next two years, the number of home sales under the MLS® system in the GTA will trend lower off the 2007 record high.

- Sales will moderate due to softer economic conditions domestically and elevated home prices.
- While home sales will be off record levels, continued steady net-migration and low borrowing rates will keep home buying activity in the GTA in line with the average over the past ten years.

ii) More real estate supply, moderate resale price growth.
- New listings will continue to grow to reach a record-high level in 2008. The trend will flatten out in 2009.
- The trend in listings growth will eventually slow and then change direction, however, as fewer home owners are able to sell their homes for the anticipated values for their properties. This will begin to happen toward the end of 2009.
- While the sales-to-new listings ratio will continue to decline, it will do so at a diminishing rate.

- The resale market will remain balanced, with prices growing in line with inflation.
- The average home price in 2008 will be up 2.6 per cent to $387,000. By the end of 2009, the average price of home will reach $394,000 - up 1.8 per cent.
- Not all housing types will experience the same moderation in price growth over the next year. Condominium apartments in the central Toronto area are a good example of this. The central Toronto area remains a tighter market than the region as a whole.

iii) First buyers of first time homesniche gets smaller.
- Over the long term, first-time buyers will remain the most important factor driving sustained demand for home ownership in the GTA. In the short-term, however, the level of first-time buying activity is subject to
the economic cycle.
- The number of households purchasing their first home will be trending lower in 2009. Softer labour market conditions along with elevated home prices will be the primary reasons. - Based on CMHC's Renovation and Home
Purchase Survey, the percentage of intended home purchases accounted for by first-time buyers declined to 40 per cent for 2008 compared to 47 per cent in 2007. This share will decline further in 2009.


3. Economic and final Trends
i) Toronto will continue to create jobs.
- Employers in the GTA have persevered in 2008. The rate of job growth will be 1.8 per cent in 2008 - above the average for Ontario.
- In 2009, job growth will remain positive, but the rate of growth will moderate to one per cent. Job growth will come from the service sector.

ii) Current Mortgage Rates.
- Mortgage rates are expected to be relatively stable throughout the last quarter of this year.
- Posted mortgage rates will decrease slightly in the first half of 2009 as the cost of credit to financial institutions eases.
- Rising bond yields, however, will nudge mortgage rates marginally higher in the latter half 2009.
- For the last quarter of 2008 and in 2009, the one year posted mortgage rate will be in the 6.00-6.75 per cent range, while three and five year posted mortgage rates are forecast to be in the 6.50-7.25 per cent range.

Thank you

Mark Argentino

The chart below shows how CMHC predicts that our GTA resale real estate market will perform in 2009

This chart shows how CMHC predicts that our GTA resale real estate market will perform in 2009
They are estimating that home sale will be down about 8.5% compared to 2008 and that there will be about 1.2% increase in the number of homes that are listed in the GTA in 2009.
Their conclusion is that we will experience moderate growth in resale homes prices in 2009 of about 1.8%

REMAX Report on Real Estate Housing Market Conditions in the Greater Toronto Area

This is a report from REMAX talking about the current state of our real estate market

Toronto Real Estate Board stats for October created some heated dialogue in the industry in recent weeks. While many believe that the dismal statistics reflect the recent volatility in financial markets, some are now asking if they also identify an emerging trend in the Greater Toronto Area.

The simple answer is no. Although there are some serious negative factors influencing the marketplace, one month does not make a market. We need several consecutive months of momentum – one way or another – before we can really determine the direction of the market.

Make no mistake. 2008 has presented our industry with challenges across the board. Unit sales are down 16 per cent from one year ago, hovering at approximately 70,000, while average price at $380,654 is up marginally over year–to–date figures for the same period in 2007. And the prognosis will get worse before it gets better, considering the new land transfer tax rate implemented in January, 2008 artificially inflated housing values during the fourth quarter of 2007. Average price hovered close to $400,000 in October, November, and December of last year – which will be the measuring stick in the months ahead.

Clearly, market conditions have shifted in favour of the buyer. There are more homes listed for sale than one year ago and houses are taking longer to sell. Our forecast for 2008 – released in October of 2007 – said as much.

Sellers are adjusting to new market realities – albeit reluctantly – while buyers are taking it all in. Some are sitting on the fence, waiting for housing values to fall further or interest rates to decline a percentage point or two more. The courageous are jumping into the market, taking advantage of lower prices, greater selection, and less competition.

For those that are trading in the same market, it’s all relative. Sellers may get less than they thought for their homes, but they’ll also pay less on the other side of the transaction. With market conditions stabilizing, first–time buyers now have the luxury of time in making their housing decisions. They also have greater purchasing power than they had one year ago – and their dollar will go much farther.

Unlike other investment vehicles, residential real estate serves two purposes. It’s still considered an investment, but it is also a roof over your head. We know from past experience that housing appreciates at a rate of five per cent annually. It’s cyclical, so it may rise and fall, but the risk involved will never be as steep or as serious as in the stock market, where the value of your portfolio can drop 30 per cent overnight and some of your stocks can fall to 0. You also can’t live in your mutual fund.

Real estate in the Greater Toronto Area has faced many challenges over the years but continued to experience steady growth. In 2009, there are some announcements that are expected to have a positive impact on the housing market and they are as follows:

1. The Bank of Canada has indicted that lending rates may fall further in 2009.
2. Federal government intervention in the form of a $75 billion mortgage purchase from the CMHC will free up additional credit.
3. Measures will be introduced by both the Federal and Provincial government to bolster the economy. In Ontario, that could mean a bailout package for the ailing manufacturing sector.
4. A lower Canadian dollar – hovering at 85 cents American – may provide a much–needed boost to manufacturing.
5. Job employment rates continue to hold steady in the GTA, despite upward momentum at the provincial level. The unemployment rate was 6.8 per cent in October, down from 6.9 per cent in September.
6. Population in the GTA continues to grow through migration, with 60,000 plus households expected to form in 2009.

Last, but not least, we must remember that the Greater Toronto Area generates about 10 per cent of the country’s total wealth – that’s comparable to what New York, Chicago, Boston, and San Francisco make to the US economy. There’s no question that we are a world–class city – in a have–not province. We may be in for some challenges over the next six to nine month period, but we should see clear signs of recovery by late 2009. The good news is that lifecycle events will continue to occur, whether real estate is experiencing a bull or bear market.

Please email or post any comments or questions.

Thank you and have a good day,

Mark

This is what RBC is telling their investors in these difficult economic times

do you agree with this?

Given the ongoing volatility in the global financial markets, it is understandable that many investors are anxious, not only about their investments, but also about the safety and security of the financial institutions where their money is being held.

I would like to assure you that your investments are safe and secure with RBC Direct Investing. RBC Direct Investing is backed by RBC, the largest bank in Canada. Canada was recently rated by the World Economic Forum as having the world's most financially sound banking system. RBC has been able to withstand the recent market shocks and pressures due to our financial strength, sound risk management policies and high quality balance sheet. In relation to our global peers, Canadian financial institutions are withstanding this unprecedented period in the world's economic history.

As well, RBC Direct Investing is a member of the Canadian Investor Protection Fund (CIPF), providing our clients' accounts with protection within the defined limits of CIPF. For more information about CIPF and their coverage, please visit their website.

To get additional insights on current market conditions, I recommend that you read the attached "Perspective on Current Markets" prepared by RBC Asset Management. It provides an overview of the issues that today's market faces, a historical view and some insights on what to do next. For daily updates, please visit the Market Insight page, available from the Markets tab, for the RBC Morning Market Commentary prepared by RBC Dominion Securities and the Daily Economic Update prepared by RBC Economics.

The team here at RBC Direct Investing is committed to ensuring that you have the support you need during these difficult times by continuing to provide you with outstanding service. This can be challenging during times when trading volumes soar, but I am pleased to let you know that RBC Direct Investing recently ranked number one among a group of online brokers randomly tested by the Globe & Mail's Rob Carrick for site stability during extremely high volumes of trading on the Toronto Stock Exchange. Plus, when you trade online, you can always feel confident knowing that your account is protected against unauthorized transactions and fraudulent activity thanks to the RBC Direct Investing Online Security Guarantee.

In closing, I would like to thank you for your continued business with RBC Direct Investing.

Doug Coulter
President and CEO
RBC Direct Investing

Mark

Positive thinking... your key to success in this market

Good day to you!

And I mean "Good Day" Today is a great day for doing business! Your attitude is everything and when your attitude is positive or negative, you feel differently in the direction of that thought.

By feeling differently, you act differently and project differently. This is why positive thinking works and is the whole formula for the 'law of attraction'. It is not your thoughts that create your world around you, but that is where it starts.

Your self talk and your thoughts create the way you feel. The way you feel affects the way you act and the way you act will have a direct impact on your success in all aspects of your life. This is why some people will struggle in a slower market place while others will thrive.

As I am sure you are aware, many potential homebuyers are hesitant to make a decision in these times. Mostly because of what they read in the papers and what the see on the news, regardless of its accuracy.

They tend to ignore the positive and pay closer attention to the negative and the media knows this. After all... it is the negative information that sells newspapers and gets ratings, right? In no way am I saying the market is perfect right now, but what I am saying is there is tremendous opportunity out there for buyers who are in the marketplace.

If you have a positive attitude, it will affect the feelings of not only yourself, but the people around you, namely.... your clients. Your positive attitude will most certainly affect they way they feel, in turn, affecting their buying decision.

This is not a false feeling, because there is plenty of reason to think positive in today's market.

Make them aware of all the reasons why it is a great time to buy right now... which it is! If they are a first time homebuyer, tell them about the amount of inventory on the market. More inventory, equals more choice and much less chance of running into a 'multiple offer' situation.

There is also a much greater chance they will encounter a motivated seller and end up with a real bargain. If they are holding off because they think they will get $20,000 more for their house in the spring, well, the house they are buying is probably $20,000 less, so it is all relative. Mortgage rates are low right now as well with a 5 year fixed available for as low as 5.40. The lowest variable rate is 5% even and I have a special running on a one year fixed at 4.35%.

So be positive, make some changes in your marketing efforts, adapt, and keep your options open. Start looking at possible clientele that you may have overlooked before.

Is there anything I can help you with today?

To your personal success!

Mark


http://www.mississauga4sale.com/Motivation-Success-Ten-Scrolls.htm