Archive for August, 2010

How to calculate Land Transfer Tax

Friday, August 20th, 2010

 

ONTARIO GOVERNMENT LAND TRANSFER TAX COSTS

On transfers of residential real property in Ontario, Ontario Land Transfer Tax (LTT) is calculated on the purchase price (less a calculation regarding HST, if the property purchased is a newly built home). The Ontario land transfer tax is payable by the purchaser on the purchase price upon registration of a Transfer/Deed of Land in the Ontario Land Registry Office on closing based on the following upward sliding scale:

0.5% on the first $55,000 of the purchase price, plus

1.0% on the amount exceeding $ 55,000 up to and including $250,000, plus

1.5% on the amount exceeding $250,000 up to and including $400,000, plus

2.0% on the amount over $400,000.(Be aware that for non-residential properties, such as industrial or commercial real estate, there is no 2% charge since the tax rate is 1.5% for any amount of purchase price over $250,000 regardless of the total price.)

Example:
The Ontario land transfer tax on a property transferred for $200,000 is calculated as $275.00 on the first $ 55,000 (0.5% = $ 275.00), plus $1,450.00 on the next $145,000 (1.0% = $1,450.00), for a total of $1,725.00.

Will House Prices Drop In Burlington ?

Monday, August 16th, 2010

House Prices stay high as Sellers fight to keep them up !!
In many of my Blog Posts I always maintained in the past prices will remain high. Also buy a house you love and do not just look at is as an investment . One article today was published in the Hamilton Spectator, which prompted me to write this short blog.
A quote from one article in the Spectator was as follows
“Sellers stubbornly hold onto their perception of what their home is worth, whereas buyers turn on a dime.”
In tough economic times Sellers will fight to keep their homes that is for sure. I also have always pointed out in my own view the Canadian Economy is evolving to a “ European type of economy” The HST is similar to the VAT ! Houses are expensive and we have to work longer and harder to keep them.
Burlington Inventory is at 680 homes including Condos . Simply put inventory’s are low and interest rates are still low. The amount of inquiries I have received have doubled in the last two weeks. I am expecting a busy fall market.
I will observe Buyers are not as rushed to make an offer and they are actually thinking.
This is a welcomed relief !!
Carl

Home improvement in Dundas

Monday, August 9th, 2010

zdenka 2010 001

Dont ignore curb appeal and outside landscaping. The trick is to keep things simple , Grass cut small gardens and the  improvement should add significantly to the enjoyment of the home.  Here is the Before and After shot of a deck in Dundas .

When your selling its important to get your home ready on the outside not just the inside.  

deck pictures 002

Very Interesting Article

Monday, August 9th, 2010
Steve Ladurantaye Real Estate Reporter

 

Globe and Mail Update

After several months of small pullbacks, the number of houses sold in some of Canada’s largest markets plummeted in July. There are plenty of factors at work – most notably the rush of buyers earlier in the year who wanted to avoid new taxes in B.C. and Ontario –

As prices moved higher in 2009 and 2010, many Canadians rushed to get their houses on the market. The number of houses listed has peaked just as demand cools. At the end of June, CREA said it would take 6.9 months to sell all the listed homes in Canada given the current rate of sales – the highest level since March 2009. Sellers face a choice. Take their listings down, or settle for less.