How will the latest Federal and Provincial Budget's impact you as a homebuyer or homeseller?The information below has gathered from various web sites.
NEW HOUSING REBATE
Buyers of new housing would be eligible for new housing rebates. The annual benefit of the new housing rebate is estimated to be $1.1 billion.
Currently, the RST applies to building supplies used in the construction of new homes. The single sales tax would remove this embedded tax. Based on a recent Canada Mortgage and Housing Corporation study, this embedded sales tax ranges from about two per cent to three per cent, on average, on the final sale of a new house in Ontario.
To ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden, the government is proposing a new housing rebate. Homebuyers would be able to claim a rebate of part of the provincial portion of the tax for new homes priced up to $500,000. The rebate for new primary residences under $400,000 would be 75 per cent of the provincial portion of the tax (or six per cent of the purchase price), with the rebate amount reduced for homes priced between $400,000 and $500,000.
Resale homes would not be subject to the single sales tax.
Property Tax Relief
The government is proposing to increase the amount of ongoing sales tax and property tax relief for individuals and families with low to middle incomes by more than $1 billion a year. To better target this tax relief, the current combined sales and property tax credits would be replaced with two new tax credits: the Ontario Sales Tax Credit and the Ontario Property Tax Credit. These changes would improve transparency, fairness and timeliness.
Ontario Property Tax Credit
Property tax relief, currently provided through the Ontario Property and Sales Tax Credits, would be replaced by a new refundable Ontario Property Tax Credit for low- to middle-income homeowners and tenants that would provide an additional $270 million in property tax relief on an annual basis. The new credit would maintain existing benefit amounts while extending property tax relief to more Ontarians.
The credit would be based on occupancy cost — that is, property tax paid or 20 per cent of rent paid. A credit would be provided for occupancy cost of up to $250 for non-seniors or $625 for seniors, plus 10 per cent of occupancy cost. The credit would not exceed occupancy cost and would be subject to a maximum of $900 for non-seniors and $1,025 for seniors. It would then be reduced by two per cent of adjusted family net income in excess of $20,000 for single individuals and $25,000 for families.
For example, for the 2010 taxation year, a single individual with income of $20,000 or less and $500 in monthly rent would receive $370 in Ontario Property Tax Credit; a couple with $1,500 in property tax and $25,000 or less of family income would receive $400; and a senior couple with $4,000 in property tax and $25,000 or less in family income would receive $1,025.
The amounts and thresholds would be indexed for inflation to protect the value of this assistance for people with low to middle incomes.
About 2.3 million families and individuals would benefit from this measure.
Eligible senior homeowners will continue to receive additional assistance with their property taxes through the Ontario Senior Homeowners’ Property Tax Grant.
First-Time Home Buyers’ Tax Credit Explained
By Brian Madigan LL.B.
The federal government has introduced a tax credit in its budget for first time home buyers:
“Budget 2009 proposes to introduce a new non-refundable tax credit based on an amount of $5,000 for first-time home buyers who acquire a qualifying home after January 27, 2009 (i.e. the closing is after that date). The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.
An individual will be considered a first-time home buyer if neither the individual nor the individual’s spouse or common-law partner owned and lived in another home in the calendar year of the home purchase or in any of the four preceding calendar years. A qualifying home is one that is currently eligible for the Home Buyers’ Plan that the individual or individual’s spouse or common-law partner intends to occupy as the principal place of residence not later than one year after its acquisition.
Budget 2009 also proposes that the credit be available for certain acquisitions of a home by or for the benefit of an individual who is eligible for the disability tax credit (DTC). In particular, the credit will be available in respect of a home acquired after January 27, 2009 (i.e. the closing is after that date) by an individual who is eligible for the DTC, or by an individual for the benefit of a related individual who is DTC-eligible, if the home is acquired to enable the DTC-eligible individual to live in a more accessible dwelling or in an environment better suited to the personal needs and care of that person.
For the purpose of this credit, a “DTC–eligible” individual is an individual in respect of whom an amount is deductible under the DTC for the taxation year in which the agreement to acquire the home is entered into, or would be deductible if costs for an attendant or care in a nursing home were not claimed for Medical Expense Tax Credit purposes by or on behalf of that person. Where the home is acquired by or for the benefit of a DTC-eligible individual, the home must be intended to be the principal place of residence of that individual no later than one year after its acquisition.
The credit may be claimed by the individual who acquires the home or by that individual’s spouse or common-law partner. For the purpose of this credit, a home is considered to be acquired by an individual only if the individual’s interest in the home is registered in accordance with the applicable land registration system.
Any unused portion of an individual’s First-Time Home Buyers’ Tax Credit may be claimed by the individual’s spouse or common-law partner. Where more than one individual is entitled to the First-Time Home Buyers’ Tax Credit (for example, where two individuals jointly buy a home), the total amount of the credits claimable for the year by those individuals shall not exceed the maximum amount of the credit that would be claimable for the year by any one of those individuals.”
It is not a grant, but rather a tax credit. It has greater impact for those with lower levels of income. The credit is rather small, and its receipt is delayed until the filing of the income tax return for the appropriate taxation year. Hopefully, it will operate as a stimulus to the real estate industry.
More Takes on the Federal & the Provincial Budget.
The Federal Budget 2009 recognizes economic importance of housing to stimulate the economy introduces several incentives to get Canadians spending by buying a first time home, or renovating the one they are already in. New Canada's Economic Action Plan includes:
Home Buyers’ Plan Withdrawal Limit Increase
First-Time Home Buyers’ Tax Credit
ecoENERGY Retrofit Homes Grant
The Home Renovation Tax Credit
RRSP Home Buyers Plan (HBP) changed
The changes to the RRSP Home Buyers Plan introduced in the new budget are not only good for potential home buyers, they are also seen as a victory for OREA and CREA. “It’s gratifying to see that our lobbying efforts at the national level for enhancements to this program have paid off,” says OREA President, Gerry Weir.
The 2009 budget increases the withdrawal limit for the RRSP Home Buyers Plan to $25,000 from $20,000 providing first-time home buyers with additional access to savings to purchase or build a home.
The eligibility and repayment rules remain pretty much the same. The money withdrawn from the RRSP must be repaid over a period of no more than 15 years to retain its tax deferred status. The repayment period starts the second year following the year the first withdrawals were made. If a participant pays less than the scheduled annual payments, the amount that they don’t repay must be reported as income on their tax return for that year.
For example, in October 2009 a first time buyer withdraws $24,000 from his or her RRSP to finance the purchase of a home. Their first annual repayment of $1,600 ($24,000 divided by 15 years) is due by December 31, 2011.
First-time Home Buyers Get a Non-refundable Tax Credit
For 2009 and subsequent years, the budget also introduced a new non-refundable tax credit to help first-time home buyers with some of their closing costs. This Home Buyer Tax Credit (HBTC) will provide up to $750 in tax relief on the purchase of a first home. The HBTC is calculated by multiplying the lowest personal income tax rate for the year (15% in 2009) by $5,000. For 2009, the credit will be $750.
To qualify for the HBTC, an individual must purchase a qualifying home and neither the homebuyer or the homebuyer’s spouse or common-law partner can have owned and lived in another home in the year of purchase or any of the four preceding years.
A qualifying home is a housing unit located in Canada including existing homes and those being constructed. Single-family homes, semi-detached homes, townhouses, mobile homes, condominium units, and apartments in duplexes, triplexes, fourplexes, or apartment buildings, all qualify. A share in a co-operative housing corporation that entitles the individual to possess and gives an equity interest in a housing unit also qualifies. However, a share that only provides a right to tenancy in the housing unit does not qualify.
ecoENERGY Retrofit Grants for Eco-friendly Upgrades
The ecoENERGY Retrofit program provides home and property owners with grants of up to $5,000 to offset the costs of making energy-efficiency improvements. Grants apply to a variety of measures that reduce energy consumption – anything from increasing insulation to upgrading a furnace. Building on the success of the existing program, Budget 2009 provides an additional $300 million over two years to the ecoENERGY Retrofit program to support an estimated 200,000 additional home retrofits.
Home Renovation Tax Credit
Home Renovation Tax Credit (HRTC) will provide a temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010. The credit may be claimed for the 2009 taxation year on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, and will provide up to $1,350 in tax relief.
What’s eligible and what’s not for the HRTC?
The federal government hopes the Home Renovation Tax Credit will get Canadians spending now to help create jobs in industries typically hurt by an economic downturn. Now through January 31, 2010, homeowners can claim a tax credit for 15 per cent of renovation expenses between $1,000 and $10,000. Here’s a sample of what qualifies under the program and what does not.
Eligible:
Renovating a kitchen, bathroom or basement
New carpet or hardwood floors
Building an addition, garage, deck, garden/storage shed, fence
Re-shingling a roof
Swimming Pools (inground and permanently installed above-ground pools)
A new furnace, woodstove, boiler, fireplace, water softener or water heater
A new driveway or resurfacing a driveway
Painting of interior or exterior of a house
Window coverings directly attached to the window frame and whose removal would alter the nature of the dwelling
Laying new sod
Fixtures – lights, fans, etc.
Associated costs such as permits, professional services, equipment rentals and incidental expenses.
Ineligible:
Furniture, appliances, and audio and visual electronics
Inflatable pools
Purchasing of tools
Cleaning carpets
House cleaning
Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)
Financing costs
Ontario Real Estate Association (OREA) Commentary
“At first blush, the incentives related to housing seem very positive,” says 2008 OREA President, Gerry Weir. “However, we shouldn’t expect to see these programs stimulate the economy immediately like people hope they will. We are probably looking at two to three years before we see the benefits.”
As for the 2009 budget in general, Weir says the billions of dollars the government plans to spend on municipal infrastructure will likely do volumes to create jobs and boost the economy. “We are grateful that the government recognizes that the housing industry moves the economy, but we must have consumer confidence. Job creation and low interest rates will help people – especially first time buyers – feel secure about buying a home,” says Weir. “Then we will also see people spending more on renovations.”
Mar. 29, 2009 - Canadian Expert Says We've Hit Bottom!
This report from one of Canada's foremost experts on real estate, a man who is in the trenches working in this market, shows that the time for homebuyers to act is NOW.
In conversation with different business people over the last few weeks, each and every one of them has told me how their business has suddenly taken a big leap. These stories are coming from people such as the hair salon owner whose phones suddenly started ringing and now her business is back to where it was last Fall, or the drycleaner who has seen a return to Fall 2008 numbers of people bringing their shirts in for laundering. The couple of real estate lawyers I've spoken to in the last 2 weeks have reported that their business going forwards is looking far, far stronger than it did at the beginning of March. Folks, these are not just random occurences. If hairstylists and dry cleaners are suddenly busy again, it means that their customers are feeling more confident and are ready to resume their old habits. If real estate lawyers are busy, it means that the few weeks before they saw their business pick up were weeks when people were out buying houses.
I look around in our office, and we have a full board of sales for March, more than we've seen for months. I listen to agents talking of the multiple offer situations they and their clients have been in, and I hear them bemoaning the low inventory of homes. All of these are indicators that, as Brad Lamb says, we've hit the bottom.
If YOU are thinking of buying, as I've been saying for the last month, the time to take action is NOW. Don't miss your opportunity; call me today at 905-208-7002 and let's get you started.
Mar. 26, 2009 - This Week - Real Estate, Thoughts, & Musings
Greetings to you all. Before I get to the latest real estate update, I'd like to offer you a couple of items of a more personla nature. The first is the following video. I received it from an American friend of mine, a Vietnam veteran who is, like most Americans, ultra-patriotic. I received the file as a PowerPoint presentation, but once I watched it, I knew it had to be shared, and so I took the time to convert it to a video file. If you want to share it, please feel free to send people here, or to our YouTube page to view it bigger there.
I have never paid much attention to the subject of this video, but you can rest assured, I will from now onwards. If there is another unfortunate day when this occurs, I will take my son out of school and go to somewhere along the route where we can express our respect, grattitude, and shared sorrow.
The next item I wanted to bring to your attention is a sneaky new tactic being used by the local traffic police to catch people who are violating the Highway Traffic Act. I have the utmost respect for the job our police department does, and I am very thankful to have lived in such a safe and crime-free town as this since 1972. I drive very close to the speed limit all the time, and I am one of those fanatics who get wierd looks and unfriendly salutes all the time becuase I believe that a STOP sign actually means you are supposed to STOP. However, I admit that I was, at first, a little put off when I noiced what looked like a taxi-cab pulled over on Derry Road near 4th Line in Milton, with blue, red, and white lights flashing away from behind the radiator grille. I was driving the opposite direction, and as I got closer to the vehicle, I did a double-take because that white plexi sign on top of the vehicle was indeed shaped like those of the local cab company, but the identifying info said 'POLICE' 878-5511. Wow, I thought, I guess that makes sense, because "everyone knows that cabs drive really badly all the time, and if there's a cab around, people take it for granted there's no coppers around".
So, when you are out and about, be careful; you never know what type of vehicle will be pulling you over next. ps - Halton Regional Police - Thank you for ALL the great work you do for us!
CALLING ALL WANNA-BE INVESTORS!!!
The market is still really good, but time could be running out on your opportunity to get into this exceptional wealth-building segment of your financial plan. Interest rates are incredibly low now, lower than ever in history - I've just finished helping an investor into a property with a mortgage rate below 5%!
With each passing day, opportunities are being snapped up by people ready to take action. We're discovering new opportunities on a regular basis, but prices seem to have bottomed out.
Do you want to being to invest, but don't know where to start? A great first step would be to attend the next offering of our Millionaire Real Estate Investor workshop - it's coming up on April 21st at the Best Western in Milton. Don't want to wait that long? No problem, give me a call at 905-208-7002, or fire me off an email and we can chat about the first basic steps you need to take to get started.
In fact, the first 3 readers who contact me about investing, mention the secret phrase "Everyone Can Do It . . . Not everyone will . . . Will You?" will receive a complimentary copy of the New York Times best-selling book, The Millionaire Real Estate Investor. Just email me or call me, give me that phrase, tell me you read it here on MiltonBlog.com and we'll get this $30-value book off to you right away.
DO YOU KNOW ANY FIRST-TIME HOMEBUYERS?
If you do, we need your help, and they need you to do them a huge favour - tell them about our upcoming 'Your First Home' seminar on Thursday, April 23rd at the Best Western Inn in Milton. Full details can be found at http://AllMiltonHomes.com
SO, HOW'S THE MARKET ANYWAY?
Well, that's a good question! The most accurate answer to that question has to be "it really depends, more than ever, on the neighbourhood you live in, the price range of your house, and your motivations for selling, if that is why you are asking". This is the response we give to all buyers and sellers, because, as you have seen from our weekly Milton Total Market Overview reports, the price range where there is activity each week seems to fluctuate from week to week.
As mentioned above, this is a great market if you are an investor; it's not a great market if you just want to sell to see how much you can get.
I visited 2 couples recently, to discuss the possible sale of their house, and both visits were remarkably similar. They had each spoken with several agents, and felt more confused about things because they had an overinflated opinion of the value of their property, and the agents they met with, before me, agreed with that value. I asked if the agents had shown them the most recent market data, listings, sales, etc., and none of them had. In I came with market data showing the reality of prices, and the confusion began. Neither couple could understand why the agents had agreed with their pricing opinion, nor did they understand why these agents would show up without any printed backup for the market value they claimed they could produce. I left both couples with clear market data that showed them the true value of their home, and some real thinking to do.
So, why do I relate this tale to you? I want you to be prepared, that's why. There are lots of hungry agents out there, agents who will put the need to feed their family ahead of their duty to tell you the truth. Agents who just don't have a clue about what is really going on in the marketplace, because they don't bother to do the kind of in-depth analysis that we do. I'm not saying, by any means, that all agents are like this; you need to be aware of the differences and your options.
You know how people buy things - they buy the same way you do - by comparison shopping, right? Real estate is no different - when you sell your house, you know that buyers will compare it to their other options in the marketplace, and to what has recently sold. So, ask yourself, why would you listen to any agent who tells you information that they cannot support with the latest, most in-depth market data?
Save yourself time, headaches, and heartaches - call the agents who care and back up that caring with pure market data.
Mar. 24, 2009 - What DOES one Trillion Dollars look like?
What DOES one Trillion Dollars look like?
The following is a graphical illustration of just what one trillion dollars looks like.
What does one TRILLION dollars look like? From http://www.pagetutor.com/trillion/index.html
All this talk about "stimulus packages" and "bailouts"…
A billion dollars…
A hundred billion dollars…
Eight hundred billion dollars…
One TRILLION dollars…
What does that look like? I mean, these various numbers are tossed around like so many doggie treats, so I thought I’d take Google Sketchup out for a test drive and try to get a sense of what exactly a trillion dollars looks like.
We’ll start with a $100 dollar bill. Currently the largest U.S. denomination in general circulation. Most everyone has seen them, slightly fewer have owned them. Guaranteed to make friends wherever they go.
A packet of one hundred $100 bills is less than 1/2" thick and contains $10,000. Fits in your pocket easily and is more than enough for week or two of shamefully decadent fun.
Believe it or not, this next little pile is $1 million dollars (100 packets of $10,000). You could stuff that into a grocery bag and walk around with it.
While a measly $1 million looked a little unimpressive, $100 million is a little more respectable. It fits neatly on a standard pallet…
And $1 BILLION dollars… now we’re really getting somewhere…
Next we’ll look at ONE TRILLION dollars. This is that number we’ve been hearing so much about. What is a trillion dollars? Well, it’s a million million. It’s a thousand billion. It’s a one followed by 12 zeros.
You ready for this?
It’s pretty surprising.
Go ahead…
Scroll down…
Ladies and gentlemen… I give you $1 trillion dollars…
(And notice those pallets are double stacked.)
So the next time you hear someone toss around the phrase "trillion dollars"… that’s what they’re talking about.
A friend emailed this to me, and whilst I have been unable to verify the original source, it occurs to me that it
is a 40 Billion dollar rescue plan that would work. I'm sure smarter minds could fill it full of holes, so I'd love
to see some reasons why it wouldn't work.
This was an article from the St. Petersburg Times Newspaper on Sunday. The Business Section asked readers for ideas on "How Would You Fix the Economy?".... the answer:
Patriotic retirement
There's about 40 million people over 50 in the work force..
Pay them $1 million apiece severance with stipulations.
1) They leave their jobs. Forty million job openings - Unemployment fixed.
2) They buy NEW American cars. Forty million cars ordered - Auto Industry fixed.
3) They either buy a house or pay off their mortgage - Housing Crisis fixed.
Mar. 23, 2009 - Milton Real Estate Total Market Overview
This past week in real estate has been a little slower than previous weeks, as might be expected, given that it is March Break in the schools. I had thought that things might not change much, in the expectation that many people would not be going away, but all indications are that people either went away or spent the time doing stuff locally. Excellent!
Take a look at what's been happening the last 6 months in town:
Milton Total Market Overview Weekly Summary
Number of Active Listings
Number of Pendings
Pending Ratio
Number of Exired Listings
Average List Price of Solds
Average Sold Price
List to Sales Ratio
Days on Market
EXPIRY RATE
09/05/2008
467
15
0.032
33
$ 343,017.63
$336,665.63
98.15%
48
6.80%
09/12/2008
469
14
0.030
0
$ 419,733.67
$410,777.67
97.87%
31
0.0%
09/19/2008
491
23
0.047
20
$ 339,056.88
$333,725.88
98.43%
55
3.9%
09/26/2008
494
17
0.034
12
$ 410,352.29
$399,207.00
97.28%
48
2.3%
10/03/2008
489
9
0.018
0
$ 356,016.67
$347,807.33
97.69%
40
0.0%
10/10/2008
514
8
0.016
19
$ 298,940.00
$291,800.00
97.61%
30
3.6%
10/17/2008
521
16
0.031
16
$ 380,212.50
$368,033.25
96.80%
49
3.0%
10/24/2008
527
11
0.021
15
$ 331,671.43
$323,631.28
97.58%
39
2.8%
10/31/2008
547
7
0.013
19
$ 342,037.50
$334,500.00
97.80%
46
3.4%
11/07/2008
529
20
0.038
30
$ 318,858.50
$310,715.17
97.45%
50
5.5%
11/14/2008
525
10
0.019
0
$ 321,006.80
$311,413.40
97.01%
46
0.0%
11/21/2008
561
9
0.016
0
$ 318,580.00
$309,716.60
97.22%
43
0.0%
11/28/2008
545
18
0.033
0
$ 287,979.85
$277,485.00
96.36%
38
0.0%
12/05/2008
521
11
0.021
11
$ 318,250.00
$308,620.83
96.97%
40
2.1%
12/12/2008
476
14
0.029
0
$ 319,674.00
$307,444.45
96.17%
57
0.0%
12/19/2008
399
9
0.023
20
$ 349,792.86
$333,342.86
95.30%
46
4.9%
12/26/2008
389
0
0.000
16
$
$
0
4.1%
01/02/2009
358
6
0.017
28
$ 313,741.67
$304,816.67
97.16%
49
7.7%
01/09/2009
362
6
0.017
24
$ 338,644.33
$328,111.00
96.89%
76
6.5%
01/16/2009
360
11
0.031
27
$ 359,974.29
$347,075.71
96.42%
71
7.3%
01/23/2009
357
23
0.064
21
$ 365,862.00
$350,430.00
95.78%
106
5.5%
01/30/2009
346
14
0.040
27
$ 335,616.71
$326,761.86
97.36%
96
7.5%
02/06/2009
335
7
0.021
28
$ 328,030.00
$315,700.00
96.24%
62
8.2%
02/13/2009
353
24
0.068
21
$ 301,995.00
$294,066.50
97.37%
32
5.6%
02/20/2009
314
24
0.076
12
$ 358,898.38
$348,548.00
97.12%
29
3.6%
02/27/2009
375
19
0.051
18
$ 351,070.00
$340,443.83
96.97%
35
4.6%
03/06/2009
404
24
0.059
14
$ 354,792.22
$339,152.33
95.59%
51
3.3%
03/13/2009
408
23
0.056
0
$ 335,486.75
$328,904.75
98.04%
61
0.0%
03/20/2009
400
17
0.043
9
$ 375,907.33
$368,224.11
97.96%
37
2.2%
As you can see, the number of available properties has fluctuated pretty wildly; it will be interesting to see what happens over the next couple of months. I tend to think that, with the ongoing tightness of mortgage funds, supply will stay around these levels as buyers pick and choose very carefully.
For the latest issue of the Milton Total Market Overview, click here
Hi, it's time for the weekly Milton Total Market Overview for the week ending Friday, March 13th, 2009.
The market remained consistent this past week, with a total of 23 sales reported, and only a 1% growth in the number of properties available, up to 408 properties for sale. As you'll note when you review the data, the bulk of the activity is in the under-$300,000 price range, with approximately 60% of all sales occuring in that area. The range from $300,000 to $350,000 saw 15% of the sales, so one can clearly see that the current activity is being driven by the incredibly low interest rates and prices that are lower than in the last couple of years.
In fact, I am presently working with 4 couples who have been holding off their buying process, in the hopes that rates and prices would come to where they are, and these folks are reaping the rewards of their patient gamble.
You'll also notice that the days on market is fairly consistent, and if it weren't for a couple of anomolies, would have been less than 6 weeks on average.
You know, the most common thing people are saying to me these days is 'How's the market? I hear it's pretty lousy', and my response is always the same. "First of all", I advise them, "the market is very local, and even a town as small as Milton is facing more than one kind of market right now. However, in general, this is not the kind of market where you just put your home on the market to see what you can get for it". I then go on to say that "if you have $15,000 or so available, this is an incredible market for you to buy an investment property that will pay for itself. Where can you get $15,000 from today?". My point here is that this market is presenting opportunities that haven't been seen in this area for more than 20 years, and yet 99.9% of people with access to that kind of money are not taking advantage of those opportunities to secure the future of their family.
On that note, why not come on out to the next Millionaire Real Estate Investor workshop, coming up on Tuesday March 17th, 2009, at the Best Western Inn on Chisholm Drive in Milton? You can get full details and sign up at http://MREISeminars.ca
Who is the next person you know who would love to own a home of their own? We're having a very special 'Your First Home' seminar on Thursday March 19th, 2009, at the Best Western Inn, Milton, from 7 to 9pm, and you can get more details at http://AllMiltonHomes.com
To view a brief TV show on the Canadian real estate market this month, go here, and to view a PowerPoint video showing some different information, here
Typically, it takes a lot to shock me. I've walked through this life thinking that I was pretty aware of the world around me. What I saw in this video completely shattered that illusion!
I am utterly gobsmacked! I've noticed just how much 'stuff' we put out in our recycling bin every week, and the amount seems to grow on an ongoing basis. This video makes me believe that the secret is not in recycling, but in not using the stuff in the first place.
So, what can one household do? Well, for starters, perhaps frequenting the bulk store will help, as we won't be buying all that packaging. I'm not sure what else. I'd love to hear your suggestions please.
Mar. 12, 2009 - Fixed-Rate Mortgages A Better Choice
More Canadians will turn to fixed mortgages as rates plummet to rock bottom
Ross Marowits, THE CANADIAN PRESS
March 10, 2009
MONTREAL - Bargain basement borrowing costs are prompting many Canadians to opt for fixed mortgages even though variable products continue to be a money-winning option for the foreseeable future, industry observers say.
Canadian Imperial Bank of Commerce's chief economist says variable rate mortgages should produce the greater benefit for the next two to 2.5 years, but be a wash over five years.
"If you're really risk-averse, jump on those fixed-term rates because they're extremely cheap," Benjamin Tal said in an interview.
"Going variable probably will give you good performance for the next two years or so and beyond that, we might see interest rates rising."
Inflation could ultimately lead to higher interest rates, but likely not before 2011, he said.
Variable rates remain attractive even though banks last fall eliminated discounts and began charging premiums for those who signed up for them after the Bank of Canada lowered its interest rate.
The central bank went even further on Tuesday, cutting its trend-setting overnight rate another a half percentage point to 0.5 per cent. Banks followed by lowering their prime rate to 2.50 per cent.
Bank governor Mark Carney said he now sees recovery coming later than it had projected, possibly in early 2010. And he hinted that instead of further lowering rates, the central bank may consider alternative strategies, including buying back government bonds and other forms of credit from chartered banks.
Homeowners with variable rates, especially those with discounts reaching 90 basis points, should ignore temptations to lock in now, says Vince Gaetano, vice-president of Monstermortgage.ca.
The self-professed fan of variable mortgages said they give customers control, which is important in the current economic climate.
Gaetano said homeowners should use this window of low rates to pay down their mortgages as quickly as possible.
"The key is if you can pay your mortgage in half by the time your variable rate doubles your interest cost is going to be the same on your balance."
He accused banks of scaring mortgage holders last fall to lock in their variable rates by suggesting rates will rise. The deteriorating economy has only caused rates to fall even further.
"There's lots of consumers not happy with their banks right now for bad advice," he said, noting that people who opt for variable mortgages have to be comfortable with fluctuations.
Owners of rental properties, however, should stick to fixed-rate mortgages to balance steady income with stable interest expenses, he added.
Mark Olkowski, Southern Ontario manager of mortgage firm Invis, said fixed rates have dropped so low that new mortgage holders are looking more closely at this option than they did just a few months ago.
"The average consumer is looking at it now and they're probably waiting for something to trigger," he said.
If rates haven't reached a floor, they are probably close to it, added Olkowski, who said he hasn't yet seen a flurry of people opt for fixed rates.
"We pretty much have a good idea what's going to happen in 2009. The trick is trying to figure out what's going to happen in 2010, 2011, 2012 and 2013."
The beauty of variable rates is that consumers can convert to a fixed rate without penalty.
Mortgage expert Moshe Milevsky of York University suspects many Canadians will opt for the security of fixed mortgages considering how low rates have dropped.
But he said the decision about what kind of mortgage to take should never be made in isolation of individual circumstances such the amount of equity, value of the house, debts and risk aversion.
And in markets where real estate prices are falling, seeking a long-term rate may be more important than the type of rate.
"The last thing you want to do is have to renew your mortgage in a year from now and have the bank say: 'Let's assess what that house is really worth,' " he said in an interview.
Studies conducted by Milevsky have determined that variable rates have historically produced greater savings 88 per cent of the time.
"But in today's environment, you'd be hard-pressed to make a case to continue floating," he said, advocating a blend between fixed and floating rates.
You still have time to save on this year's personal income taxes by contacting us nowto arrange your free, no-obligation, strictly confidential consultation. During these troubled times, now more than ever you need to know that you are paying the least amount of tax.
Rapidly changing tax legislation means our personal and business tax planning advice will save you money. Please contact us nowto receive your FREE 2008 Tax Return Organizer.
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If you incurred capital losses in 2008, consider carrying them back to previous taxation years to get tax money back
File a tax return for your child if they have "earned income" so that RRSP contribution room will be created
Transfer credits such as tuition, education, textbook, pension, disability and age amongst family members
Split pension income with your spouse if it will minimize tax and maximize the pension credit
Amend your prior year tax returns for missed expenses or other errors to get tax money back
File Form T1213 to request a reduction in your income tax withheld from your salary in 2009
Defer deductions such as RRSP and Capital Cost Allowance to save them for a subsequent year when you will have a higher tax rate or if you are not fully utilizing your non-refundable personal tax credits
TAX TIPDon't leave your tax planning to chance. Contact us nowfor your free, no-obligation, strictly confidential consultation while there is still time
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You must pay your personal income tax by April 30, 2009 so be sure to file your 2008 Individual Income Tax Return now to avoid penalties.
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The material provided herein is believed to be accurate and reliable as of the date it is written. Tax laws are complex and are subject to frequent change. Professional advice should always be sought before implementing any tax planning arrangements. We cannot accept any liability for the tax consequences that may result from acting based on the contents thereof.
Howard Halpern CA, CPA (USA), CFP, TEP Tel: 905.709.4357 Fax: 905.709.3400 E-mail:hhcacpa@rogers.com
We are sorry for the delay in getting these 3 issues of the total market overview out to you; computer meltdowns and a business trip to Florida are the culprits.
The market over the last 3 weeks has seen relative stability in the number of units sold, fairly short average days on market, and a stabilization of prices. The average days on market being around 35 leads me to believe that, as happened to one of our listings recently, people are seeing a home they really like, waiting a week or 2 to see if anything better comes on the market, and then making their buying decision.
At the Keller Williams Family Reunion I just attended in Orlando (our annual convention), one of the points that really hit home with me is that this market is a 'limited-time offer'. Just like when stores have sales for a week or two and advertise 'or while in stock', no-one knows when the market will turn. I spoke with hundreds of real estate agents from across North America, and all the really good ones knew the day the market turned in their area. That day was May 12th, 2008 in Milton. We don't know when the market will turn back up - I wish we did - but we do know that when it does, and the public catches on to that change, prices will rise and the best deals will be gone.
So, are you looking for a great deal on a good home for your family? If you are, the current combination of lowest-in-history mortgage rates and low prices say that it is time for you to take action NOW. Call me at 905-208-7002 to discuss your options.
You can download the Total Market Overviews by clicking the links below:
Don't forget our upcoming Millionaire Real Estate Investor Workshop on Tuesday March 17th - details at http://MREISeminars.ca and our upcoming 'Your First Home' Seminar on Thursday March 19th - details at http://AllMiltonHomes.com
RBC study finds home purchasing intentions rebound in Ontario Almost two-in-three Ontarians say it's a buyer's market
TORONTO, March 4 /CNW/ - Homebuying intentions in Ontario have increased over last year and sit just shy of 2007 levels, according to the 16th Annual RBC Homeownership Survey. The poll found that 30 per cent of Ontarians said they were likely to purchase a home within the next two years, up from 21 per
cent in 2008.
The survey, conducted by Ipsos Reid, found that a large majority (73 per cent) believe it is a buyer's market right now, with less than one-in-ten (seven per cent) saying sellers currently have the advantage. Given current housing prices and economic conditions, most Ontarians (54 per cent) believe
it makes more sense to buy now, rather than wait until next year. "With mortgage rates and housing prices looking more favourable than they did last year, many Ontarians are saying now is the time to buy," said Doug Crowe, vice-president, Mortgages, Greater Toronto Area, RBC. "Our survey also
showed that an overwhelming majority of Ontarians still feel confident that buying a home is a smart, worthwhile investment."
In fact, according to the survey, 84 per cent of those polled in Ontario said that buying a home is a good or very good investment. On average, Ontario homeowners approximate the value of their home at $247,632. On average, they also estimate that the value of their homes increased 10 per cent over the
last two years.
Among those who plan to purchase this year or next, 34 per cent cited the need for a bigger home. Thirty-three per cent will do so because their current home does not meet their needs, and 32 per cent said they will buy because house prices are attractive. Seventy-six per cent said they plan to purchase
resale and most (69 per cent) will opt for a detached house.
Future Ontario homebuyers also specified that environmental considerations would weigh on their purchase decision. Almost all respondents (96 per cent) indicated that buying a home with low energy consumption was important to them and 81 per cent said the same about environmentally-friendly
features. Further, 91 per cent of those surveyed were interested in having standardized energy ratings for their homes.
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Regional Differences Nat BC AB SK/MB ON QC AT
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Own a home 67% 69% 69% 70% 68% 60% 67%
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Percentage of homeowners
who have a mortgage 61% 56% 46% 62% 64% 66% 60%
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Percentage who believe it
is a buyer's market 65% 78% 72% 34% 73% 52% 58%
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Owners and renters who are
'likely' or 'very likely'
to purchase a home in the
next two years 27% 26% 35% 25% 30% 22% 25%
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Believe mortgage rates
will be higher in one
year's time 33% 28% 26% 35% 33% 33% 46%
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Believe housing prices
will be higher in one
year's time 25% 20% 23% 27% 26% 25% 36%
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Believe buying a home is
a good investment 83% 81% 86% 83% 84% 79% 84%
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Homebuyers planning to
purchase a detached home 68% 76% 63% 63% 69% 60% 84%
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Homebuyers planning to buy
a bigger home 47% 42% 40% 69% 52% 49% 20%
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Homebuyers planning to buy
a resale home 74% 83% 71% 60% 76% 75% 64%
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Homebuyers planning to buy
a new home 26% 17% 29% 40% 24% 25% 36%
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These are some of the findings of an RBC poll conducted by Ipsos Reid between January 6 and 9, 2009. The online survey is based on a randomly selected representative sample of 2,026 adult Canadians. With a sample of this size, the results are considered accurate to within +/-2.2 percentage points,
19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error for residents of Ontario is +/-3.5 per cent (N=771) and the margin of error for Ontario homeowners is +/-4.2 per cent (N=535). The margin of error will be larger for other sub-groupings of
the population. These data were statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2006 Census data.
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