New Home Rebates

Buyers of new homes in Ontario will be affected by the province’s proposal to harmonize its retail sales tax with the federal goods and services tax. As a result, new homes in Ontario that are subject to GST (5%) will become subject to the provincial component of the HST (8%) as well.

Ontario recently released transitional rules for some new housing transactions that will straddle July 1, 2010, the effective date of the harmonized tax. Ontario also proposed changes to the new housing rebate announced in its 2009 budget.

Under the enhanced rebate announced on June 18, 2009, the $500,000 threshold to qualify for a rebate will be eliminated. As such, new homes purchased as primary residences across all price ranges will qualify for a rebate of up to $24,000 of the 8% provincial component of the HST.

The rebate will be 75% of the provincial portion of the HST payable on the purchase of a new home, up to a maximum rebate of $24,000 (i.e., $400,000 × 8% provincial component = $32,000 ×75% rebate = $24,000).

New home buyers may also be eligible for the federal GST new housing rebate, which generally equals 36% of the tax paid on the first $350,000 of the purchase price. The amount of the GST rebate is phased out on a straight-line basis for homes priced between $350,000 and less than $450,000.

Qualified housing includes both newly constructed and substantially renovated homes, co-operative housing, owner-built housing, housing on leased land, mobile homes and modular homes for use as primary residences.

The Bidding WAR!!!

The Real Estate market is HOT, and this can put both the Seller, Buyer and Realtor in a hot situation. The Seller is expecting top dollar for there home, buyers are trying to get a deal, and the Realtors are caught in the middle trying to make the transaction as smooth as possible!

Here are a couple tips to keep in mind when you get into a BIDDING WAR!!!

1.Sit back and decide what your bets offer is, ” the value is in the eyes of the buyer, whatever the buyer is willing to pay will pay, even if its $30,000 over asking if they want to buy that home they will put the number on paper!”. Offering the highest price will make your offer more attractive and is a sure way to get the Seller’s attention. In most cases Seller’s who receive multiple offers only seriously consider those at the top of the price heap.

2. Show the Seller that you are a serious Buyer. Offer a large down payment or deposit, this will show the Seller your motivation.

3.Get Pre-Approved by your mortgage professional. Going in with an offer without a need of a financing condition shows the Seller your are financially stable and can afford this transaction. And you may want to even  include your pre approval letter with your offer, so the Seller can see you are approved.

4. Do not add unusual conditions to the offer, you don’t want to complicate things. By adding more useless conditions this can act against you when your up in a bidding war. Try to avoid conditions such as ie: “Conditional on the sale of your home” etc this can act as a loop hole and be a way for a Buyer to get out of the deal. However do not exclude the standard conditions such as for home inspection or financing conditions, unless you know the risks that can come along with it.

What is Title Insurance?

Firstly “Title”  describes the right of onwership, When you purchase a home the “Title” is transfered into your name you are the new home owner.

Title insurance is an insurance policy that protects you the home owner, against any challenges to the ownership of your home or from problems related to the title to your home. The policy covers losses due to title defects,also known as “cloud on title”. There are many differents types of defects they include: encroachments,unpaid leins, outstanding work orders etc.

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What is a Status Certificate???

You have purchased a Condominium, and you hear the words “Status Certificate”? Well what is that? and why does my lawyer have to read this stack of paperwork?

A Status Certificate is a document that explains the current status of Condominium Corporation. When purchasing resale is it important that your offer is conditional upon the review of the Status Certificate.

The Status Certificate provides important information about the condominium corporation, such as any arrears or increases in common expenses; Whether any major work needs to be done to the building; The amount of the reserve fund and whether the reserve fund is sufficient for any major work. The Status also provides information about any claims against the corporation and whether the corporation is involved in any proceedings. This is important because if there are high claims against the corporation and the corporation’s insurance does not provide coverage; the corporation can either increase the common expenses or levy a special assessment against the unit owners. When you are purchasing a condominium, you need to know of any potential or significant increase in your monthly common expenses which is very important.

The Status Certificate package also includes the corporation’s financial statements, declaration and by-laws. The financial statements gives good indication of a corporation’s financial stability and give a good indication to whether or not the corporation is healthy. The statements will demonstrate the trends in expenditures and receipts for previous years and provide comparisons of a corporation’s actual and expected costs to come. The budget for the current year will also be included, identifying both the income to the corporation, and the amount of the reserve fund. The declaration of the corporation (Condo Docs) outlines the rules and regulations of the corporation for example whether you can keep pets or weight restrictions,what colour window coverings can and cannot be.

Therefore when purchasing a Condominium, have a lawyer on your team so you can find out the inns and outs of the building. You never know what you can find in the condo docs, and could possibly be a deal breaker or winner!

Tips and Tricks for HOME STAGING

In today’s market if you want to sell your home for top dollar and within a reasonable time frame your home must look top notch! A fresh paint job and super clean just doesn’t cut it.

When getting your home ready for sell, you have to create a fantasy place. You want people to walk through your home and say “Wow, this looks amazing I want to live here” And this is where home staging comes into gear, creating an inspiring living space.

A Home Stager will assess your home and surroundings, declutter areas, remove furniture and store it, replacing it with new pieces.

Here are some tips you should do when preparing to stage your home!

DECLUTTER- has to be the number one thing you must do! There’s nothing worse then walking into a home and all you see is junk all over the kitchen counters, you open up a closet and there is no sense of organization. You must get rid of household junk and make all these area neat and clean.

DEPERSONALIZE- Yes, you may be proud about that medal you won, however we shouldn’t have those personal items on display. When selling your home you would like to portray and image not make the potential buyers feel there intruding on your personal space.

MAKE THE NECESSARY REPAIRS- Walk around your home and take a look at all the minor details, make sure all the door hinges work on the kitchen cabinets, make any minor adjustments. Make sure sliding doors open with ease. Repair leaky taps, re caulk windows. Replace any burnt out light bulbs etc. Your want you home to put out its best face!

TURN UP THE DECOR A NOTCH- If your home is decorated beautifully a few extra touches will not hurt but enhance the whole home.Place some beautiful silk /fresh flowers in pretty vases throughout the home. Replace heavy drapes with light wispy linen. Try to accessorize with some nice pillows or throw, this is a great way to add colour to a room!

ROMANCE THE BIG DAY- We want to create a fantasy home for people. During open houses and daily showings, light scented candles, buy some fresh flowers, put a nice bowl of fresh fruit in the kitchen, turn on all the lights in the home. Have all the doors open, removes shampoo bottles and soap in the bathroom, throw out some fresh towels, make sure all the beds are made up nicely.

So when you decide your ready to make that big sale, take some of these tips into consideration it may make or break a sale!