Harmonized Sales Tax - Toronto Real Estate Blog

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Strong economy sees numbers boosted

Toronto Sun – Richard Silver, TREB President

As one of the world’s most diverse cities, Toronto welcomes nearly 100,000 newcomers to Canada each year. These people have chosen Toronto to begin building a better life. A report released recently by CIBC World Markets confirmed that the reasons for embracing Toronto are well founded.

The report assessed the performance of Canada’s largest cities in the first quarter of this year, and while Toronto didn’t come out on top in any individual category, the cumulative effect gave Toronto top position in the report’s ranking of Canadian cities.

The Toronto Real Estate Board’s figures on July’s resale housing market are testament to the strength of our local economy.

A total of 7,992 homes changed hands in July, representing a 23 per cent increase over the 6,564 sales from a year ago. While sales were robust in July, it is important to note that the sharp increase is relative to July 2010, when higher lending rates, new mortgage regulations and misconceptions about the Harmonized Sales Tax dampened activity.

Including July transactions, there have been 55,863 transactions so far this year, within 1.3 per cent of last year’s performance. Total sales for the year are expected to move above the 2010 total by the end of August.

Sales activity in the 905 Region outpaced that of the City of Toronto last month, with year-over-year increases of nearly 25 per cent and 21 per cent respectively.

The amount of time it took to sell a home, on average, declined compared to last year. Homes that sold this past July were on the market for an average of 26 days – down by 21 per cent from an average of 33 days a year ago. This decline in selling time is largely due to a dip in listings in comparison to last year. Less supply has led to more competition amongst home buyers, which has decreased the decision time for offers.

Tighter market conditions continued to drive strong annual growth in the average selling price. The average price of a resale home in the GTA increased by almost 10 per cent year-over-year to $459,122. Gains were slightly stronger in the city’s surrounding area, with the 905 average price climbing 11 per cent to $448,612. The average price in Toronto increased seven per cent to $475,717.

Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis suggested that market may become more balanced in the second half of the year: “We did see some year-over-year improvement in new listings in July, but sales continued to grow at a faster clip. As we move toward the end of 2011 and into 2012, expect more households to list their home for sale, prompted by the strong price growth reported during the first half of 2011.”

Homeownership remains affordable in the Greater Toronto Area. Low mortgage rates and steady income growth have kept homebuyers confident in their ability to purchase and pay for a home over the long term. This is why the number of transactions and the average selling price has continued to grow. However, some of our REALTOR® Members serve consumers in the City of Toronto putting their clients at a disadvantage. Consumers could be doing even better with the repeal of the backbreaking and unfair upfront costs brought about by Toronto’s additional land transfer tax. Mayor Rob Ford has promised to do away with the tax. All Members of the Toronto Real Estate Board, especially residents in the 416 area code, look forward to the fulfillment of this promise.

With the recent volatility of the financial markets, the strength of home ownership has become a great topic for discussion. Variations can occur but your home is where you enjoy your family and friends. Living in the Greater Toronto Area is a very wise long term investment with lots of options in terms of housing type and neighborhoods.

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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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7 things to know about buying a resale condo

January 27, 2011 Buying Real Estate, First Time Buyers, New Toronto Condos & Lofts, North York Condos, Toronto Condos

By Mark Weisleder – Toronto Star MoneyVille

A condominium is like a small town. It has a board of directors made up of its residents much like a local council, it has rules, restrictions, bylaws and even fines for misbehavior. The condo across the street that looks the same, but it may be a completely different community.

That’s why it pays to keeping a handful of things to keep in mind when it comes to finding the right unit for you.

1. The 3P’s – Pets, People and Parking

Many condos prohibit or restrict pets from dogs and cats, to goldfish and snakes. There may also be rules restricting the number of people that can occupy a unit, whether you can barbecue on the balcony or put a satellite dish on the outside wall. Other restrictions include the time of day when you can play musical instruments, use the pool or the party room.

There may be further restrictions about renting your unit. Your parking spot may be owned by you or owned by the condominium, and this will affect whether you can sell your parking space or be able to buy one from another unit for a second car.

2. Reserve Fund

How much money is in the reserve fund and how much is needed? The board must make sure that the common condo elements, including the lobby, hallways, elevators, furnace, roof and parking garage are always maintained and repaired. This means conducting reserve fund studies. Ontario’s Harmonized Sales Tax (HST) will add approximately 4% to a condo’s annual expenses because items such as utilities, security, landscaping and snow removal are now being taxed. So common condo expenses will rise going forward. If the condo’s reserve fund isn’t topped up it could lead to costly special assessments in the future. If there is no reserve fund study done, be very wary of buying.

3. Professional management

Most condo directors do not have the business, legal or people skills required to manage their building. They are responsible for a budget that could be in the millions and must also deal with disputes between owners and the condo corporation. They also require a working understanding of the Provincial Condominium legislation that governs their condo. Even a relatively simple decision such as when to turn on the air conditioning requires someone who understands how the system works, as the decision will affect unit owners in different ways, depending on whether they are on the sunny or shady side of the building.

That’s why a property manager helps. This person can offer advice and help solve problems among unit owners.

4. Insurance deductible

If your building insurance policy contains a $5,000 or $10,000 deductible, then be sure to speak to an insurance specialist about obtaining your own unit coverage to protect your contents and any improvements that you make to your unit.

5. Were alterations legal?

If any alterations were made – check to make sure that any necessary approval was obtained by the condo board, so you do not have to go through the cost of getting approved – which could require further inspection and certification by plumbers, architects or engineers.

6. Do the owners get along?

Knock on some doors before you buy and ask people about the building. Also have a look at the minutes of the last annual meeting. Was it orderly or were many items disputed. You can tell a lot about whether owners get along as a group by what takes place at the annual meeting. Be suspicious if there has not been a meeting in over a year.

7. Status Certificate

The status certificate issued by each condo should provide an up to date copy of all important condominium documents, the budget, the last annual meeting, whether there are arrears of common expenses, any special assessments being considered and whether or not there has been a Reserve Fund Study. Your purchase agreement must be conditional on your being satisfied with the contents of this important document. Review this carefully with your real estate salesperson and your lawyer.

Before deciding on which condominium town you would like to live in, ask the right questions in advance and you won’t be hit with unwelcome surprises after you move in.

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

Buying a home? Get the facts on HST

December 5, 2010 Buying Real Estate, General Real Estate, Real Estate Taxes, Toronto Real Estate

Strengthening our economy and creating more jobs for our families depended on being open to change, opportunities and our new world.

Ontario’s move to a Harmonized Sales Tax (HST) was one of those big changes. It wasn’t easy, but it was the right thing to do.

Independent economists say the HST and other tax changes will create nearly 600,000 more Ontario jobs over the next 10 years.

But we knew that over the near term, it meant that some purchases were going to cost more. We planned for this. We have a comprehensive package of tax changes that has put money directly into your pockets so that you can cover these additional costs.

In fact, the overwhelming majority of families come out ahead because of the tax changes we are making:

* Cutting personal income tax for 93 per cent of income tax payers
* Providing up to $1,000 for families (including single parents), or up to $300 for single people, in Ontario Sales Tax Transition Benefits
* Creating the new Ontario Sales Tax Credit that gives each member of your family up to $260 a year
* Increasing the energy and property tax relief provided to low- to middle-income people by 70 per cent
* Delivering an additional $500 a year to help senior homeowners pay their property taxes

What You Need To Know If You Are Buying a Home

* The HST does not apply to resale homes
* An Enhanced New Housing Rebate means that buyers of new homes receive a rebate of up to $24,000 regardless of the price of the new home
* Buyers of homes priced up to $400,000 (about three-quarters of new homes built in Ontario) on average, pay no more – and possibly even less – tax than under the PST system
* 93 per cent of all homes sold in Ontario, on average, are not subject to an additional tax amount under the HST
* Since December 14, 2007, the Ontario government has extended a land transfer tax refund of up to $2,000 to first time buyers of resale homes
* On new homes over $400,000, additional tax only applies to the portion of the price above $400,000. For example, if a new house was priced at $450,000, additional tax would only be applicable on $50,000

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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 reproduce them here for people who
are interested in Toronto real estate. They do not work for any builders.
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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.

Century 21 Regal Realty Inc. Brokerage
1332 Queen Street West
Toronto Ontario M6K 1L4
Office Phone: 416−849−5360
Office Fax: 416−849−8987

Laurin Cell: 416−388−1960
Laurin Email: laurin@jeffreyteam.com

Natalie Cell: 416−318−7917
Natalie Email: natalie@jeffreyteam.com

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.