Real Estate Newsletter

Happy Long Weekend!

July 20, 2009 -- In the first two weeks of July, Greater Toronto REALTORS® reported 4,437 sales up 27 per cent compared to the first two weeks of July 2008. The average price for these transactions was up four per cent year-over-year to $394,750.

JUST SOLD

Southbrook Crescent, Markham 97% of asking price with multiple offers. Beautiful semi-detached home located at Woodbine and 16^th Ave. The home boasts 17’ high ceiling and elegant finishes, a park and pond are 2 minute away.

Exclusive listing @ The East Loft

2 Bedroom and 1 bathroom with 130 Sq Ft Terrace. 9' Ceiling, Stainless Steel Appliances, West City View and Parking is included. http://www.eastlofts.ca/big/12.pdf

Mortgage News

Although the upward pressure that we have seen in the last few months on the benchmark 5 year fixed rate has relaxed slightly (our best 5 year fixed rate is now at 4.19%), we continue to encourage clients to consider other options before locking in.

The 5 year variable rate is now 2.60%, which still represents a significant savings from the current 5 year fixed rate. The Bank of Canada, while remaining cautious, is still committing to hold the prime rate at 1/4 percent until mid 2010 conditional on inflation. The outlook on inflation meanwhile continues to be positive.

For clients that can tolerate the possibility that their mortgage rate will fluctuate slightly over time, this is a viable option. For clients that do not wish to tolerate fluctuations in their regular payments, 3 year fixed rate terms remain at 3.55%, which still represents a significant saving from the 5 year rate, while offering the confidence of a fixed mortgage payment.

* Rates are based on the most current lender information and may vary based on individual circumstances. Rates are subject to change without notice.

This issue of Mortgage News is provided by Steve Weber, Mortgage Agent of Centrum One Financial Group Inc.

Please email Steve at steve@expertmortgage.ca or visit the website at www.xpertmortgage.ca

Assignment Part III

Most of the first-time Assignee(s) worry if their deposit would be at risk. The risk could be the the Title is not owned by the Assignee until final closing with builder. But the Assignee(s) has put in an substantial amount of desposit with the Listing Real Estate Brokerage In-Trust. Another risk is that the builder has to postpone the final closing because of the builder had violated some city regulation or by-law.

Here are the three(3) common conditions that should insert into the assignment contract in order to protect the Assignee(s).

1. Assignee’s solicitor to review and approve the Purchase Agreement with its amendments and condominium documents provided by the Assignors after acceptance of this Assignment Agreement, failing which this assignment Agreement shall become null and void and all deposits shall be returned to the Assignee in full immediately without interest or deduction.
2. This Offer of Assignment is conditional upon the Assignor obtaining a written consent from the Vendor approving the Assignment of the Unit within Twenty (20) business days, failing which this Agreement becomes null and void and all deposits shall be returned to the Assignee in full immediately without any interest or deduction.
3. This Assignment is conditional upon the Assignee or the Agent, obtaining at the Assignee’s expense, a new First Mortgage. Should the Assignee or the Agent not obtain the new First Mortgage within 3 banking days of the acceptance of this Assignment by the Assignor, then this Assignment shall become null and void, and Assignee’s deposit shall be returned to him in full without interest or penalty. The Assignee reserves the right to waive this condition at his sole option.

New Home GST Rebate - Be Careful!!!

If the purchase price with builder is in addition to GST. It means that the builder is paying for the GST to the Government. The GST will remit back to the builder after closing.

Pay attention to this!!!! If the assignee/purchaser is not qualified for GST for any reason such as prchaser bought 2 units in the same building. One of the two units has to be an investment unit. The assignee/purchaser have to pay GST on the investment unit to the builder since builder has already paid GST to the government upfront and the investment unit is not qualified for the GST rebate. Please consult lawyer and accountant for detail.

What is Land Transfer Tax? Take Advantage of First-Time Homebuyers Program

In general, if you buy land or an interest in land in Ontario, you must pay Ontario's land transfer tax, whether or not the transfer is registered at one of Ontario's land registry office.

Land includes any buildings, buildings to be constructed, and fixtures (such as light fixtures, built-in appliances and cabinetry).

Land transfer tax is normally based on the amount paid for the land, in addition to the amount remaining on any mortgage or debt assumed as part of the arrangement to buy the land.

Refund Program for First-Time Homebuyers

First-time homebuyers may be entitled to a refund of Ontario's land transfer tax, up to a maximum of $2,000. This refund is usually claimed at the time of registration. If not, the refund may be claimed directly from the Ministry of Revenue.

To claim a refund, you

must be at least 18 years old;

must occupy the home as your principle residence within 9 months after the date of transfer; and

cannot have previously owned a home, or an interest in a home, anywhere in the world

In addition,

your spouse can not have owned a home, or an interest in a home, anywhere in the world while being your spouse.

If not claimed at the time of registration, refunds must be requested within 18 months of registration.

For Toronto Municipal Land Transfer Tax Rebate.

the Rebate is up to $3,725 if elegible.

What does an Assignment Costs you?

Here is an example of a 1 bedroom:

Original Purchase Price: $160,000
Assignment Price: $260,000

Desposit (25% of Original Purchase Price) = $160,000 * 25% = $40,000
Profit = $260,000 - $160,000 = $100,000

Step 1: Upon Acceptance of the Assignment Contract, within 3 business days, assignee submits $40,000 to Listing Brokerage In-Trust.

Step 2: When Assignment Closing, assignee submits profit of $100,000 to Listing Brokerage In-Trust

Step 3: Interim closing with builder, including pre-delivery inspection (PDI), start paying monthly occupancy fee. What is occupancy fee? Occupancy fee consists of property tax, maintenance fee and interest of 75% of original price

Step 4: Final Closing with Builder. Closing cost of ~$4,000

Murano South Tower Assignment Price List

South Tower

Suite Type	For Sale	For Rent	Locker	Parking	Remark
Bachelor	$210,000	$1,300/m	Y	N	16th Floor
1 Bedroom	$243,000	$1,350/m	N	N	12th Floor
1+1 Bedroom	$344,900	$1,700/m	Y	Y	42th Floor

Purchase and Sale Assignment ~ Transfer of Purchase and Sale contract from Seller to Buyer. The contract was originally signed with the Builder. The Seller has not closed the unit yet until Feb 2010. The Buyer has to pay for the profit and the deposit that the Seller has put in for the pre-construction purchase. Buyers usually use their Line of Credit or Savings, but NOT from mortgage. The Buyer will complete the contract with Builder and obtain mortgage from lending institution. Tarrion Warranty will be transferred together with the contract assignment.

*** Prices are approximate and will vary depending on the size of the unit, floor it is situated on, finishes and whether it has parking and/or locker. *** Prices are approximate and will vary depending on the size of the unit, floor it is situated on, finishes and whether it has parking and/or locker. *** Prices are approximate and will vary depending on the size of the unit, floor it is situated on, finishes and whether it has parking and/or locker.

Add tree care to your to-do list

Article Below Provided By The Globe and Mail

There may be warning signs - creaking or, in a high wind, swaying, but Peter Feniak was taken entirely by surprise. One August morning two years ago started off like any other, but by midafternoon his home was cordoned off with yellow police tape, hydro wires crackled in the street and the huge white oak tree in his front garden was split in half, a massive hulk of it exposed and lying across the sidewalk. "I saw it pitch forward in slow motion," he says. "We had no idea anything was wrong beforehand. Apparently it was the weight of the rain on the leaves that caused the spilt."

With 50,000 street trees on city property in Toronto, and thousands more in ravines, parks and private gardens, there is a potential menace when storms hit, however briefly. Trees are at risk. Property gets damaged and, in extreme cases, people are killed.

Everyone who knows trees emphasizes the need for regular inspection and care. A tree may look as strong as the Rock of Gibraltar, but it may be suffering from disease or have been damaged and susceptible to disease. A rotted-out tree will be more vulnerable.

"We see cases of included bark in the V of a tree," says arborist Larry Van Dyke of Van Dyke's Tree Care of Stouffville, Ont. "That is where two branches meet but don't grow together. A tree might need deep root feeding or pruning. We do bore tests to see if a tree is decaying or how much good holding wood is there. People will tell us that they have ants. The ants aren't the problem, but they indicate rotting wood - that's what they feed on. It is very important that people have their trees properly maintained."

If a tree is on your property, that tree is your responsibility. That means the maintenance and also the after-effects and costs for any damage that occurs if the tree goes down. If you're in doubt as to who owns a tree, check the survey of your home or call 416-338-tree. "There is an inventory of city-owned trees and people can call to find out about a tree in question," Mr. Ubbens says. "It is always, always much cheaper to take care of the regular maintenance rather than waiting for disaster to occur

When a tree on city property is damaged, the city will check neighbouring trees for decay and hazardous situations, too. This year, with the advent of $2-million in additional funding, the city's forestry team is gearing up a program of regular inspection and maintenance for its entire inventory of street trees. "

Whatever happens, Mr. Ubbens stresses, the value of the urban forest is immeasurable, and all steps will be taken to protect and expand it. "Without our trees we would have a landscape of wind and dust and so forth that we can't really imagine," he says. "No one wants to see that."

Real Estate Newsletter

In June 2009, Greater Toronto REALTORS® reported a record 10,955 sales, up 27 per cent from June 2008. The seasonally adjusted annual rate of sales in June was 100,700. 27 per cent is quite an astonishing data. What surprises me more is that a 3.2 million condo at Rosedale/Summerhill was sold in less than 5 days last week with multiple offers.

Featured New Home

New modern home inspired by fashion. This complex of 8 homes is designed by Cecconi Simone and Netkin Architects. Open concept main floor with custom millwork, serene kitchen and landscaped patio, perfect for entertaining. 3 bedrooms including full-floor master retreat with stylish bathroom and private terrace. Asking Price is 869,000. Please click Lippincott, Toronto, ON for flyer.

New Exclusive Murano assignment at South Tower: 1 bedroom plus den, asking for $349,000. High Floor (42th floor), 9' ceiling, hardwood floor, stainless appliances and unobstructed North and West view. Locker is included. Here is the Floor Plan.

Just Leased

3 Suites at Murano, 1 Suite at The Verve and 1 Suite at The Met.

My Recent Sales and Leases 2009 - 37 Sales and Leases up to July 16th, 2009. Thank you very much for the business and referrals!

Housing sales report best June on record in Greater Toronto Area

Article below provided by The Globe and Mail

Home sales in the Greater Toronto Area have rebounded in a big way after a brutal slump, increasing nearly 30 per cent since last June and heralding the return of a seller's market.

The Toronto Real Estate Board reports that this was the best June on record, with 10,955 single-family homes sold last month, and the average price hitting $403,972 - up 2 per cent from the same month last year.

"A lot of places are getting multiple offers," said Toronto real-estate broker John Pasalis. "It definitely is a heated market right now." University professor Sharon Sliwinski has been house-hunting since mid-June and is already frustrated with the crowded market.

"There was a place in Leslieville I was speechless about, it was really great," Ms. Sliwinski said. "I was at the house and it wasn't even an open-house day, but there was a constant rotation of people coming through to see it."

When Ms. Sliwinski learned there were already six bids on the home, she didn't bother to put in her own offer. She also lost out on a house just north of High Park. "I even made a healthy offer of $25,000 over the asking price," Ms. Sliwinski said. "Anything that shows well is gone right away."

Mr. Pasalis said last fall's economic tailspin spooked many would-be home buyers, driving down December's home sales to just 2,577. But now, buyers are coming back to the market in droves, encouraged by low interest rates.

"I don't think anybody really expected the real-estate market in Toronto to turn around so quickly," Mr. Pasalis said.

Royal LePage real-estate broker Eugenia Evans said there are fewer deals to be had in the stronger market, but more buyers are looking to less-expensive areas like the Junction near Dundas and Keele.

There have been fewer homes for sale as owners waited for prices to bounce back, but Mr. Pasalis predicts more homeowners will opt to sell over the next few months.

"I think demand will go down significantly as we move into the fall," Mr. Pasalis said. Jason Mercer, a real-estate-board market analyst, says he expects the 416 and 905 areas to have comparable growth rates through the second half of the year, with Brampton and Toronto's condo-rich waterfront boasting the biggest sales numbers in June.

Real Estate Newsletter

In the midst of a global recession, the average national price of resale homes in Canada hit a record level in June, and sales activity increased for the fifth straight month.

There is no sign of slowing down in July.

In this edition of New Featured Listing, I would like to introduce a true Hard Loft located at the West-end Toronto.

What is a "hard" loft ?

A true loft is a conversion of a vintage factory or warehouse. They have a harder edge as they are usually constructed of concrete or "mill" construction of exposed brick, original wood posts, beams and floors. Typically, these lofts have an open floorplan and unfinished ceilings that are at least 10' high with exposed ducts, plumbing and electrical.

New Featured Listing – Foundry Loft

Back in the early 1900s, Canada Foundry Co. Ltd. built and supplied locomotives for railways across Canada. Today, the rich history of this company and the Great Canadian Railway is kept alive with the restoration and conversion of the warehouse into 104 hard lofts in Toronto. A typical 2 bedroom 2 bathroom 2 level suite at Foundry Loft asking price is $365,000 plus $20,000 for underground parking. The loft size is about 1170 sq ft. Click on the link above to check out the pictures of the atrium as well. It is quite spectacular.

Just Sold – This beautiful historical townhome conversion at 358-368 Dundas Street East, Toronto was featured in last newsletter.

Just Leased - Forest Hill 2 bedroom condo apartment

Just Leased - Bachelor Suite at The Met

Just Leased – 1 bedroom plus den Suite at The Verve

Mortgage Tips:

The Term of a mortgage is the number of years or months over which you pay a specified interest rate. Terms usually range from six months to 10 years, and choosing the right term is critical to satisfying your financial expectations.

When you're looking at term and interest rates keep in mind that trying to predict where interest rates are going is a tough job for anyone since there are many factors that affect Canadian interest rates - economic, political, domestic, and international. Even the best economists cannot pinpoint this, so basing your decision on predicting where rates will be 3 or 5 years from now (when your term expires and you need to renew your mortgage) is very speculative.

Instead, your decision should be based on how much you can afford, and how long you feel comfortable committing to that payment. You may decide that your ability to pay is flexible, and that you would like to take advantage of the lower rates that come with today's variable rate terms. Otherwise, you may decide that you can afford a slightly higher payment, but that you want it to be stable for a longer fixed rate term.

Keep in mind that longer terms do not necessarily imply lower rates at renewal time, so be sure to review rates associated with different terms with your mortgage professional.

This issue of Mortgage Tips is provided by Steve Weber, Mortgage Agent of Centrum One Financial Group Inc.

Please email Steve at steve@expertmortgage.ca or visit the website at www.xpertmortgage.ca

Weekly Newsletter

Real Estate News:

It is amazing how our real estate market switched from literally no buyers to no sellers in months. The line-up at the concierge desk to access the unit is not unusual. Houses are sold firm within days. Most purchasers cannot afford to put a home inspection condition clause in their offiers. What is going on with our market?

June 17, 2009 -- Greater Toronto REALTORS® reported 5,185 transactions in the first half of June – an increase of 19 per cent compared to the same period last year. "Households in the GTA have become more confident in purchasing a home over the past three months," said TREB President Maureen O'Neill. "Affordability, due in part to very low borrowing costs, has played a key role."

New Featured Home: Brownstone Historical Conversion

358 -368 Dundas Street East, Cabbage Town, Toronto

The Cabbagetown neighbourhood was once described by the New York Times as "containing the largest collection of Victorian homes in North America". Cabbagetown's houses were built between 1860 and 1895. Most of these houses have been lovingly restored under the watchful eye of the Cabbagetown Preservation Association. The Association ensures that all renovations and new developments are in keeping with this historical neighbourhood.

358-368 Dundas Street East is a New York Style Brownstone Historical Conversion Co-ownership Complex. While the builder is meticulously restoring the façade of the building, the interior of the townhome is newly renovated including electrical and plumbing. The upper units are 2 bedroom and 2 bathroom with private decks on each level. On the main level, there is a grandfathered wood burning fireplace at the living room, and a 2pcs powder room. The kitchen is customized by purchasers with the pre-selected choices of material and appliances from builder. Any upgrades are available with an additional cost. Upper deck walkout from the master bedroom with large closet. Additional skylights can be installed at purchasers' cost with the heritage council's permission. Here is the Floor Plan.

Mortgage News:

Those of you watching the benchmark 5 year fixed rates may have noticed some significant increases in the last several weeks to 4.34%. Fortunately, there are options for those in need of mortgage financing in the form of a variable rate or a shorter term fixed rate mortgage.

Currently, the 5 year variable rate is 2.65%, which represents a significant savings from the current 5 year fixed rate. For clients that can tolerate the possibility that their mortgage rate will fluctuate, this is a viable option.

For clients that do not wish to tolerate fluctuations in their regular payments, 3 year fixed rate terms are now available at 3.55%, which still represents a significant saving from the 5 year rate, while offering the confidence of a fixed mortgage payment.

* Rates are based on the most current lender information and may vary based on individual circumstances. Rates are subject to change without notice.

This issue of Mortgage News is provided by Steve Weber, Mortgage Agent of Centrum One Financial Group Inc.

Please email Steve at steve@expertmortgage.ca or visit the website at www.xpertmortgage.ca

That's all for this week. Have yourself a wonderful weekend!