financial challenges - Toronto Real Estate Blog

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Housing prices cause financial worries for affluent

May 13, 2012 Miscellaneous, Mortgages and Financial Information, Other Real Estate Markets, Real Estate Prices, Toronto Real Estate

A monthly measure of Canadian home prices showed that year-to-year gains continued in January, albeit at a slower pace than in December.

By Derek Abma, Postmedia News

A leading researcher of Canadian cultural trends says extravagant prices for homes in Toronto and Vancouver could be a reason why nearly a quarter of Canadians polled who earn $100,000 a year or more have concerns about meeting their financial obligations.

A survey done for the Association for Canadian Studies found 22.8% of respondents in this income category were at least somewhat worried about their ability to pay monthly bills.

“Initially, I was kind of like, ‘Really? Jeez, that’s surprising,’ ” said Jack Jedwab, executive director of the association. “But then when I looked at the geographic data, it occurred to me that the people worried most about paying their monthly bills are in Ontario and British Columbia.”

Indeed, 51.5% of Ontario respondents were at least somewhat worried about paying their bills. This was true for 50.5% of B.C. residents.

Nationally, 44.2% of respondents expressed some concern about meeting their expenses. Concern was lowest in the combined grouping of Saskatchewan and Manitoba at 28.3%, while the concerns affected 32.5% of respondents in Alberta, 39.5% in Quebec and 41% in the Atlantic provinces.

“When you’ve got prices like Ontario and B.C., where the price of housing is, on average, the highest in the country, especially in places like Vancouver and Toronto, that’s probably causing a fair share of your perceived financial challenges,” Jedwab said.

According to the Real Estate Board of Greater Vancouver, the benchmark price for homes in March was $679,000, up 5.3% from a year earlier. The Toronto Real Estate Board said the average price in the Greater Toronto Area in early April was $506,954, up five per from last year.

The economic strength of different regions was probably also a factor in how likely people were to worry about paying their bills, Jedwab said.

Despite nearly one-in-four people earning $100,000 or more having financial concerns, the survey generally showed the less money people made, the more likely they were to be worried.

Among those making less than $20,000, 69.5% expressed some worry about their ability to pay bills. The proportion sat at 54.4% for those earning between $20,000 and $39,999; 45.5% for those earning between $40,000 and $59,999; 37.2% for those between $60,000 and $79,999; and 41.2% for those making between $80,000 and $99,999.

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Contact the Jeffrey Team for more information – 416-388-1960

Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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REALTORS Proud to Be Champions Calling for Responsible Fiscal Management From Toronto City Council

September 22, 2011 Real Estate Taxes, Toronto Real Estate

REALTORS are following-up on their presentation to the City’s Executive Committee, earlier this week, by providing additional information on why they believe that the Toronto Land Transfer Tax is not part of the solution to the City’s financial challenges.

“We are proud that the Toronto Real Estate Board was the only business organization that had the courage to go to City Hall and call for the fiscal restraint that so many Torontonians want and demand from City Council. We are proud to be a loud and strong voice in favour of sound and fair financial management from City Hall,” said Richard Silver, President of the Toronto Real Estate Board (TREB).

TREB presented its views to the City of Toronto’s Executive Committee on September 19, 2011. In its presentation, TREB told the Committee that City Hall must live within its means and that the Toronto Land Transfer Tax is not part of the solution to the City’s financial challenges.

“Questions from some City Councillors, after TREB’s presentation, made it evident that some Councillors who are not members of the Executive Committee would prefer to continue to use the Toronto Land Transfer Tax as a band-aid solution to the City’s financial challenges. Torontonians don’t want band-aids to the City’s financial challenges; they want long-term solutions,” said Silver.

After TREB’s presentation, some Councillors implied that the Toronto Land Transfer Tax has improved the City’s budget situation. TREB disagrees.

“Four years ago, many of the same City Councillors that are currently opposing changes at City Hall claimed that the Toronto Land Transfer Tax would solve the City’s financial challenges. Yet, here we are, four years after the City began collecting the Land Transfer Tax, and the City’s financial situation is the same, if not worse. Why? The answer is simple: the Land Transfer Tax was a band-aid, not a real solution. Like all band-aids, it needs to be removed,” said Silver.

Some Councillors, pointed to the current health of the real estate market as justification for keeping the Toronto Land Transfer Tax. TREB is pointing out that the real estate market can experience ups and downs.

“It is important to remember that the Land Transfer Tax is not a predictable revenue stream. The amount of revenue it generates is based totally on the activity of the real estate market. What will the City do if there is a downturn in the real estate market? Create yet another tax to balance the budget?” said Silver.

Some Councillors, questioned the relative influence of the Land Transfer Tax and municipal services on property transactions and values.

“Make no mistake: REALTORS understand that municipal services play a critical role in our City’s quality-of-life. These services are important to our clients. That is precisely why we want the City to get its finances in order. Without long-term solutions to the City’s finances, the quality of the municipal services that matter to our clients will deteriorate,” said Silver. “While municipal services are important to property transactions and values, for the vast majority of people, price is still the first and, most important, consideration.

The City of Toronto is the only municipality in the Greater Toronto Area that imposes a second Land Transfer Tax, in addition to the provincial Land Transfer Tax. TREB feels that a budget shortfall supported by a tax collected from a small group to provide services for all citizens is not sustainable in the long run. It is time to axe the tax and find a long term solution.

We look forward to the results of the Core Services Review by Toronto City Council.

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Contact the Jeffrey Team for more information – 416-388-1960

Taking steps towards the repeal of the land transfer tax

February 11, 2011 Buying Real Estate, General Real Estate, Real Estate Taxes, Toronto Real Estate

Bill Johnston – Yourhome.ca

These are interesting times at Toronto City Hall. Last fall’s election brought a new mayor and numerous new councillors, and they are promising to take the city in a new direction.

In this regard, one of Mayor Rob Ford’s most significant promises was to repeal the Toronto land transfer tax, an unfair tax that realtors have fought against since it was first proposed. We continue to oppose this tax and we look forward to working with the mayor to eliminate it.

Realtors were again hard at work on this issue recently, making our views known as part of the city’s 2011 budget process. In a deputation to the City of Toronto’s budget committee earlier this week, the Toronto Real Estate Board (TREB) told councillors that realtors are encouraged with the direction of the city’s proposed 2011 budget and believe that it is a significant step towards fulfilling Ford’s strong commitment to repeal the land transfer tax.

By demonstrating restraint and prudent fiscal management, the city’s proposed budget sets the stage for council to deliver on Ford’s clear commitment to repeal the land transfer tax by next year.

For years, GTA realtors have been telling the city that the fair way for it to address its financial challenges is to get its finances in order, instead of burdening homeowners and homebuyers with additional taxes.

Realtors fought strongly against the idea of a land transfer tax when it was first proposed in 2007. We heard the public’s concerns and we stood up for homebuyers, who we believe were being unfairly targeted by this tax. TREB’s efforts were strongly supported by the public, who also spoke out strongly against the tax. The public spoke loudly then, but they spoke even louder last October when they gave Ford an overwhelming and clear mandate.

The city’s proposed 2011 budget is an important step to delivering on the mayor’s mandate. In particular, it begins the process of addressing the city’s financial challenges with fair options, including cost-containment measures. Furthermore, it sets the stage for a forthcoming detailed program and service review, which Ford has announced will begin in March. This is an important process, and one that realtors have been calling for.

For years, Toronto’s taxpayers have been bearing the burden of unsustainable city budgets. We believe that the proposed 2011 budget stops the bleeding and that by moving forward with Ford’s commitments, including repealing the land transfer tax, next year’s budget will allow the city to flourish.

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Contact the Jeffrey Team for more information – 416−388−1960

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Laurin and Natalie Jeffrey are Toronto real estate agents. We would be happy to help you find your new Toronto home — be it house or condo or loft. We would also be more than pleased to help you sell your current Toronto property.

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The vast majority of content on this blog is not written by Laurin or Natalie Jeffery. It is written by many different authors, for many different publications and websites.

We re-print these articles here as a collection of Toronto real estate news and information. We aim for this blog to be a one-stop shop for people looking for information on Toronto real estate.

We do not claim any of the information we did not write as our own. We do not work for any publication, nor any builder. We are Registered Real Estate Sales People working for Century 21 Regal Realty Inc. Brokerage.