Tag Archives: New homes in Ontario
Buy now! HST is on the way
Ontario and B.C. homebuyers face a big tax hike
By Garry Marr, Financial Post
The new harmonized sales tax being proposed in British Columbia and Ontario may end up being an overall wash for some consumers but anyone buying a new house is about to get dinged.
The HST met with some resistance from the real estate sector in Canada’s largest province when it was first proposed earlier this year but the government agreed to some concessions.
New homes in Ontario currently just face a 5% goods and services tax which builders have buried in the price of the home since the tax was introduced 19 years ago. Starting on July 1 of next year, new houses would face a combined HST which would be 13% in Ontario.
With new home sales slowing after a seven-year bull run, the last thing the industry needed was something that would curtail activity further.
There was a sigh of relief when the government agreed to grandfather from the tax any deals signed prior to the date the announcement was made, June 18, 2009. Deals closed before July 1, 2010 would also not face the tax.
Everybody else was in trouble.
So the government came up with an exemption from the added tax on the first $400,000 of any new home, meaning consumers outside of Toronto were for the most part unaffected.
Despite the government’s “generosity,” about 40% of people buying a new home in Toronto are going to face a major tax hit. That’s the percentage of new homes that sell for more than $400,000.
On a $500,000 home in Toronto, the HST will mean $6,000 in new taxes.
Here’s how it works. The HST means an additional $40,000 in new taxes on that home, based on 8%. Builders get an estimated 2% tax credit on supplies, lowering the bill to $30,000. Minus a $24,000 tax break on the first $400,000 and you get to $6,000.
So who is going to pay for that $6,000? As the price goes up, the tax bill gets higher. It’s $36,000 for a $1-million home.
“I don’t know this for a fact but I don’t think any builder will make [the HST] an extra closing cost because they imbedded the GST for so long,” says Stephen Dupuis, chief executive of the Toronto– based Building & Industry Land Development Association.
Maybe, that extra tax is not added on to the sticker price but at some point, the consumer is going to pay. Maybe, through a higher price, cheaper materials or fewer finishings thrown in.
“A tax like this is going to be passed on to the consumer over time and the consumer is going to lose,” says Brian Johnston, president of Monarch Corp., one of Toronto’s largest home builders.
Economist Benjamin Tal, of CIBC World Markets, predicts the tax will have an impact on housing sales. “It’s not like something you can brush under the carpet,” says Mr. Tal. “There will be reduced demand.” He predicts the industry will build more houses without all the finishings. That will leave the consumer to do work on the black market with contractors to avoid the HST. That’s what happened in the Maritimes where the HST has been in play for years, said Mr. Tal.
“This will give a boost to the under-the-table transactions. Is that an optimum thing?” says Mr. Tal.
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Contact the Jeffrey Team for more information - 416−388−1960
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Riverdale regeneration at Rivertowne
From New Homes & Condos Magazine
Preceding the massive Regent Park rebuilding, Rivertowne is quickly becoming one of the most highly anticipated regenerations of a city neighbourhood in Toronto, and with good reason. This mixed-income infill community is a product of the collaboration between developers Intracorp and Marion Hill Development Corp., who have teamed up with Toronto Community Housing Corporation, Canada’s largest social-housing provider, to bring a breath of fresh air into one of Toronto’s oldest neighbourhoods. Rivertowne will include 176 rent-geared-to-income townhomes, a four-storey apartment building housing 56 affordable-housing units; and 187 one- and two-storey stacked, market-priced townhomes geared towards singles and young couples.
What makes Intracorp such a successful builder? It all begins with insight into homebuyers’ needs; the vision to design communities with a unique flair; and the expertise to build them. Intracorp has proven it has what it takes, having built over 10,000 homes and high-rise condominiums in Toronto, Calgary and Vancouver over the last 25 years. From the country club residences of Castlemore, Brampton’s executive ravine community of Castles, the traditional heritage community of Liberty Crossing in Bowmanville, and the unique condominium suites at the Pantages Hotel and Spa in downtown Toronto, the Intracorp name dots all corners of the GTA.
Over the last 15 years, Marion Hill Development Corporation and its affiliated companies have designed, built and developed over $350 million of residential, commercial and institutional projects. Marion Hill’s expertise and focus is developing and building master-planned communities including luxury custom homes throughout North America, with offices in Toronto, Dallas and New Jersey.
Together, Intracorp and Marion Hill bring expertise and professional attention to every detail at Rivertowne. Previous joint ventures include the waterfront-inspired townhomes at Canoe Landing in Picketing; One Deer Park, a 58-suite mid-rise on St. Clair Avenue West; 100 semi-detached homes at Shaw Gardens in downtown Toronto; and Strathmore, a condominium townhome community in Pickering. At Rivertowne, as with all of their developments, they are committed to ensuring total customer satisfaction.
Bordered by Dundas Street East to the north and Queen Street East to the south, between the Don Valley Parkway and Broadview Avenue, the neighbourhood boasts all the conveniences of a downtown location while offering a distinct “community” feel.
It is the eclectic mix of old and new; comfortable and cutting-edge that appeals to its residents and draws visitors in. From the old-style shops of Queen Street East interwoven with contemporary bistros and boutiques to the diversity of residents and visitors to the area, there’s no other like it. You’ll appreciate the neighbouring parkland – a rare find right in the city. The downtown core is a short trip west; the Beach is to the east; the Distillery District is to the south. Take a stroll to Chinatown East or Little India for an authentic cultural experience, or simply step outside your door and explore the countless amenities of Dundas Street, Broadview and Queen, where you can conveniently catch the TTC. You are literally in the middle of it all.
The new homes at Rivertowne are a reflection of Riverdale’s revitalization – they’re contemporary, modern and convenient. With a variety of townhome designs, ranging from one-bedroom-plus-den, two-bedroom and two-bedroom-plus-den, up to 1,118 sq. ft. and starting from an affordable $219,990, including parking, this community offers something for everyone.
The Rivertowne homes feature architecturally controlled exterior colours and materials to ensure a pleasing streetscape. And welcoming you to your home: an inviting front porch; Juliet balconies or terraces; walk-out patios; or rooftop terraces (all as per plan). Steep roof pitches enhance exteriors.
Interior finishes are spectacular, to say the least. Decorative wrought iron or natural oak-finish pickets and railing on stairwells offer timeless beauty. Imported ceramic tile flooring graces the foyers, powder rooms and bathrooms. Engineered laminate flooring in the living/dining room, kitchen and main hall is a classic choice. Choose between premium-quality nylon or berber carpets to make bedrooms extra cozy. Mirrored sliding closet doors in the master bedroom and foyer, and brushed chrome interior door hardware are small details that will not go unnoticed. Central air means you’ll be comfortable in your home all year round, no matter what Mother Nature throws as you.
Kitchens are fashionable, yet functional. Track lighting with three heads illuminates the stylish Corian countertops. Deluxe kitchen cabinetry, available in a choice of finishes, offers plenty of space for food preparation and storage. Six brand-name appliances – black or white fridge, stove, dishwasher and over-the-range microwave, and white stackable washer/dryer – are a much-appreciated bonus. The glazed ceramic tile backsplash is a gleaming finishing touch.
Bathrooms are simply luxurious – your personal hideaway – featuring your choice of deluxe cabinetry and Corian countertop; an acrylic soaker tub; rain shower head; vessel sink; and energy-efficient water saver shower and toilet tanks.
And the low maintenance fee of $155.50 per month means you never have to worry about snow removal; landscaping and maintenance; building insurance; parking garage fees; and water.
See what the buzz is all about.
New Homes & Condos Magazine is an excellent source of housing information for those looking for information on new homes in Ontario, Canada. We offer the most up-to-date information on new communities across the Greater Toronto Area.
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Contact the Jeffrey Team for more information – 416-388-1960
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Related posts:
- Riverdale regeneration at Rivertowne From The Condo Guide Preceding the massive Regent Park rebuilding,...
- Rivertowne to have neighbourhood mix Rivertowne will include elements considered essential to a healthy community Excerpt...
- Rivertowne — The first step in a new social housing experiment Barry Hertz – National Post Blog This week, city council will...
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Toronto Condos — Tarion Warranty Program
From Tridel
Your new Tridel condo comes with an extensive warranty program and is guaranteed by Tarion (formerly ONHWP – Ontario New Home Warranty Program), a private corporation that protects the statutory warranty rights of new home buyers under the Ontario New Home Warranties Plan Act. Every new home and condo built in Ontario is designed to meet or surpass both the structural requirements and the health and safety standards of the Ontario Building Code.
Tarion is a government regulated organization which regulates and licenses all builders and vendors of new homes in Ontario, and provides the following safeguards and benefits to all new home and condo purchasers.
1. Deposit protection of up to a maximum of $20,000
2. A one-year all purpose warranty against defects in workmanship and materials
3. A two-year “power train” warranty against defects regarding the electrical, plumbing and heating delivery/distribution systems, as well as violations of the Ontario Building Code’s health and safety provisions
4. In addition to providing warranty coverage for the individual unit, (up to a maximum of $150,000), Tarion provides warranty coverage for the common elements of the condominium, (up to a maximum of $2.5 million)
5. Protection against major structural defects (for 7 years)
6. Protection against substitutions of key elements in a new home made without the purchaser’s approval, in those cases where the agreement of purchase and sale expressly allows the purchaser to make choices regarding such elements
7. Compensation and protection to purchasers for delayed closings
All builders are required to deliver the most current version of the Homeowner Information Package published by the Tarion Warranty corporation. This package explains how the new home warranty process works including how to submit a claim to Tarion and outlining the time lines to respond to complaints. To download a copy of the Homeowner Information Package in PDF format, please visit the Tarion web site.
The warranty coverage begins from the date of occupancy (not move-in, if they are different) and remains in effect from that date, even if the unit is sold. It is important that you understand the difference between warranty items (which are covered by us) and maintenance items, which are the responsibility of the homeowner.
Suite coverage is divided into one, two and seven year protection against defects in work and materials. More details about this coverage are outlined below:
One-Year Warranty Protection
The builder warrants that the home is free from defects in work and materials, is fit to live in and meets the Ontario Building Code requirements. It essentially covers all noted building deficiencies listed in the CCP (Certificate of Completion and Possession) and otherwise brought to Tarion’s attention in writing before the end of the 1st year. If Tarion does not receive notice in writing within the 1-year warranty period, then the claim may not be allowed.
Note: Purchasers may claim from Tarion within the 1 year period for items not completed by the builder on the home/condo, for up to a maximum of 2% of the purchase price of the home, or $5,000.00, whichever is greater.
Two-Year Warranty Protection
The builder warrants for 2 years that there is no:
* Water seepage in the basement or foundation walls. (In condominiums, this protection includes all below ground areas such as parking garages)
* Defects in materials and work including caulking, windows and doors ensuring that the building envelope prevents water penetration
* Defects in material and work in the electrical, plumbing and heating delivery and distribution systems
* Defects in materials and work which result in the detachment, displacement or deterioration of exterior cladding, leading to detachment or serious deterioration
* Violations of the Ontario Building Code’s health and safety provisions
Seven-Year Warranty Protection
The builder warrants for 7 years that there are no major structural defects, which are defined as any defect in material or work that results in the failure of a load-bearing part of the home’s structure, or any defect in material or work that significantly and adversely affects the purchaser’s home.
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Contact the Jeffrey Team for more information
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