This new tax proposed by the Canadian Government will combine the 8% Ontario sales tax and the 5% GST into a single 13% value-added sales tax that would be federally administered, starting July 1, 2010. 

A common question regarding home selling that we are being asked is:

I want to sell my house that I currently live in. If the closing date for the sale of my house is after June 2010, would the sale of the house be exempt under the HST?

Yes. The sale of a house that has been previously (or currently) occupied by an individual is exempt from GST, and after Julne 2010, would also be exempt for purposes of the HST. This we also refer to as a “resale home” (as opposed to a brand new builder home, where HST does come into affect).

Like many services, however, that are currently taxed at 5% (GST), many of those same services will be taxed at the new 13% (HST) amount come July 2010. Things like lawyer fees, Home Inspection costs, and most notably commission paid to Real Estate companies for the listing and selling of a property. For example:

Typical Real Estate commission paid on the sale of a $200,000 home is $10,000 + GST ($500). So the total commission amount would be $10,500. After July 2010, for the sale of the same property (sale price of $200,000) the commission paid would be $10,000 + HST ($1,300), total of $11,300. An increase of $800.

The HST is expected to benefit the Ontario construction industry, as well as many Ontario businesses. There will be, however, some tax benefits for consumers also!

Rebates and Exemptions

The HST will not be charged on the following items that are currently not subject to PST:

• Basic groceries
• Prescription drugs
• Certain medical devices
• Child care
• Residential rents
• Municipal public transit
• Most health and education services
• Legal aid
• Most financial services
• Tutoring
• Music lessons

Consumers will not have to pay the provincial portion of the HST for:

• Qualifying prepared food and beverages sold for $4.00 or less
• Print newspapers
• Children's clothing and footwear
• Children's car seats and car booster seats
• Diapers
• Feminine hygiene products
• Books (including audio books)

If you have further questions about the upcoming HST, and how it might affect you in your particular case, please leave a comment here or send Teresa or myself a personal email.

Flav Onsen
Sales Representative
Royal LePage Wolle Realty

The two dates for 2010 are:

-March 9th, 2010, 7:00pm. Location to follow (Kitchener, ON)

-September 7th, 2010, 7:00pm. Location to follow (Kitchener, ON)

This seminar is a basic introduction for beginner Real Estate Investors, as well as a thorough overview for Investors who are currently landlords (and own rental properties) and want to grow their portfolio of Real Estate properties.

The seminar will cover:

• The Importance of Finding a Good Real Estate Investing System and Using It!
  
  
• The 5 building blocks of successful investing: Cash Flow, Leverage, Tax Benefits, Appreciation, Equity Build-Up

• What You NEED to Know About Mortgages For Income Properties
  - Residential properties
  - Multi-Family properties
  - Down payment and amortization

• Residential VS Commercial Real Estate Investing
  - How to choose an area for investing
  - How to close a strategy for investing

• Investing in Student Rental Properties
  
  
• How to Get a Tenant in the Property ASAP!
  
  
• Buying Rental Properties – “Nice Homes in Nice Areas”
  

If you have any questions or would like to attend, please RSVP early as seating is limited. The seminars will be free of charge, and will last roughly 2 hours.

If you would like to attend but cannot make these dates (or don’t want to wait until then) please email me directly at flav@onsenhomes.com, and I would be happy to meet with you personally.

Flav Onsen
Sales Representative
Royal LePage Wolle Realty

Buying or selling real estate is a complex and lengthy process. It is therefore wise to enlist the help of a real estate agent. A real estate agent can provide many useful services and work with you in different ways.

Very few consumers are familiar with the duties and responsibilities of their real estate agent or broker. As a result, a number of problems can arise during the various steps of a real estate transaction when consumers are not aware of their rights.

This article addresses the various types of working relationships that may be available to you. In some real estate transactions, the agent works for the seller. In others, the seller and buyer may each have their own agent. And sometimes the same agent works for both the buyer and the seller. It is important for you to know whether an agent is working for you as your agent or simply working with you while acting as an agent of the other party.

Listing Agent
A listing agent is also known as a seller's agent because they represent the seller. These types of agents owe a fiduciary responsibility to the seller under a listing agreement and must protect that interest.

The seller's agent helps determine the price of the home, suggests how to market the home, schedules advertising and open houses, shows the home to prospective buyers, and otherwise facilitates the sale.

Your property will be listed with the agent's real estate brokerage. You will be asked to sign a "listing agreement" authorizing the brokerage and its agent to represent you in your dealings with buyers as your seller's agent. Be sure to read and understand the listing agreement before you sign it.

For representing you and helping you sell your property, you will pay the listing firm a sales commission or fee. The listing agreement must state the amount of commission or fee and whether you will allow the firm to share its commission with agents representing the buyer.

Buyer's Agent
A buyer's agent is known as the "selling agent" and works with buyers to find a suitable property, contacts the listing agents, negotiates the best possible price and terms for the buyers, monitors the transaction, and sometimes help to obtain financing.

In most cases, the seller pays the sales commission that is shared by the two agents. However sometimes you may be required to pay your buyer's agent out of your own pocket if the listing agent refuses to pay. Whatever the case, be sure your compensation arrangement with your buyer's agent is spelled out in a buyer agency agreement before you make an offer to purchase property and that you carefully read and understand the compensation provision.

Buyer's agents may or may not require a buyer to sign a Buyer Agency Agreement, depending on local custom.

Dual Agent
Dual agency (or Multiple Representation) occurs when a real estate agent is representing both buyer and seller in the same transaction. Dual agency can happen even if the there are two agents involved—a listing agent and a buyer's agent—if both agents work for the same broker. That's because it is the real estate broker (the actual company) who creates the agency.

A dual agent must treat buyers and sellers fairly and equally. Although the dual agent owes them the same duties, buyers and sellers can prohibit dual agents from divulging certain confidential information about them to the other party.

Flav Onsen
Sales Representative
Royal LePage Wolle Realty

It has been a very busy and interesting fall Real Estate season, and I thought I would update the public of some of the happenings in our local market!

Once again we saw record-setting sales numbers for the month of October and November throughout Ontario. In fact, the Kitchener/Waterloo market saw higher number of house sales this past November, then it has seen  in the past 5 years (in the same month). Strong sales growth has occurred across many property types but the main driving force has been the “first time buyer” with the most activity being in the $230,000 - $350,000 price range. Interestingly enough, November saw a 233% increase (compared to November 2008) and a 67% increase compared to last month) in the number of sales of higher priced homes, between $350,000 - $500,000.  Listing inventory remained at a low level, and combined with brisk sales, indicates that we are still in a strong sellers’ market.

“While we’re not getting excited about the increase from this time a year ago, it is a little surprising to see sales as strong as they were in November. Buyers continue to take advantage of low interest rates, and are showing their confidence in the local market, “says Kitchener/Waterloo Real Estate Board President Ted Scharf. “Given the strong demand for homes we’ve seen these last few months, the active summer and the strong spring, I think it’s safe to say that whatever pinch we were feeling in the real estate market as a result of the recession has ended.”

Flav Onsen

Sales Representative

Royal LePage Wolle Realty

Tarion, who is the Ontario New Builder's Warranty Association (www.tarion.com for more info) has changed their rules in terms of how the Warranty will be affected for someone who does just that.

Full disclosure is required between the Seller and the Buyer of such a property, as well as the Seller/Flipper is required submit (this is the change that Tarion has instated to their warranty) a New Home application with Tarion, and pay a $350 fee just as if it was a NEW home being bought directly from a builder. Even though the Re-Sellers are responsible for making the application to Tarion, the Seller's Realtor needs to ensure the clients are made aware of these requirements to protect themselves and their clients.

Flav Onsen
Sales Rep.
Royal LePage Wolle Realty

Toronto, ON The Real Estate Investment Network (REIN™), Canada's leading real estate education and research organization, is pleased to release its report on the top ten investment towns in Ontario. The 105-page report, entitled Top Ontario Investment Towns 2008/2009 is the result of oroginal research compiled for REIN™'s national and international membership of real estate investors over the past 15 years. REIN™'s analysis concludes that fundamental changes in Ontario's industrial base over the last few years will deliver an above-average impact on real estate valuations in these towns heading into 2008 and 2009.

Top Ontario Investment Towns analyzes current and future prospects for real estate investment opportunities in the province, and identifies the best towns and regions for long-term investing. REIN™'s findings are based on in-depth fundamental research, analysis of the latest statistics, economic and social trends, and on-the-ground reports from REIN™'s technical staff and investing membership.

Kitchener / Waterloo / Cambridge - Canada's Technology Triangle - is #1 on the list

The top ten list is as follows:

1.   KWC - Kitchener, Waterloo, Cambridge - The Technology Triangle
2a. Simcoe Shores - Barrie
2b. Simcoe Shores - Orillia
3.  Durham Region - Whitby, Pickering and Ajax
4.  Markham
5a.Hamilton
5b.Brantford
6.  Brampton
7.  Ottawa
8.  Toronto
9.  Oshawa
10.Whitchurch-Stouffville

 As always, if you have questions regarding Real Estate, for investment or as a home to live in, send me an email. I'll be happy to chat to you about our market here in Kitchener/Waterloo.

I live in a 3 yr old 2 storey, single detached home, that I bought from a builder. I spent some money on upgrades at that point throughout the home, but the kitchen was left fairly average and untouched. There are oak cabinets with some modern handles, and the standard acrylic countertops. The change I did make was to add a raised breakfast bar, which I quite like and enjoy eating at daily. The colour, however, of the countertop is one I am not very fond of. Which brings me to today's topic... I want to change my kichen countertops. New countertops will undoubtedly add value to the home - granted I get some higher end ones. Some of the homes in this price range will have the granite, or quartz, which certainly gives the home a "WOW" feel, especially since my kitchen is quite large and open.

I've gotten a few quotes, and debaiting on the best type of material to use, for my budget, but before I get off topic, and before I bore you to death let me get to the point. I was going to wait a few years, to make this change; probably just before I decide to sell the house, because it would be a great feature and investment to have, when selling the home.... but the more I thought about it, the more I realized, why would I not do it NOW, enjoy the nicer countertops, and still have them (the countertops) as a great feature down the road when I want to sell it. Now THAT'S a great investment!!!

Many times, home owners DON'T do upgrades throughout the home, because they are "happy" with what they have but would gladly change, repair, or replace things when it comes time to sell. This could (and does) include, a deck/patio, bathrooms (tub, sink, etc), outdated light fixtures, painting, rec.room (re-carpeting, etc), or replacing old carpet with laminate or hardwood.... the list goes on.

If you have questions about how much $ to spend on a certain item, because you're wondering the sort of return you'll get when/if you sell the house, feel free to call us. We know what buyers are looking for (and are specific to type/size of house, and the average price of homes of your type) and also what they expect, so we can tell you to spend that $15,000 on a new kitchen, or NOT to spend the $10,000 on new hardwood flooring, in a condo townhouse. 

Flav Onsen
"The Onsen Team"
Sales Rep. 

"The most asked question in today's mortgage market. Should I go fixed or variable? If you are unsure and need the security that a fixed mortgage will bring then I say, do both. Split your mortgage, so that 50% is fixed to give you the security you need and 50% is variable which, at the time of writing, is a much lower interest rate. We understand that it is preferable to diversify your investments, so by splitting your mortgage, you are also diversifying your debts.

Here is an example:

• Mortgage Limit of $200,000.
• A 5 year fixed mortgage of $100,000 at a rate of 5.69%= monthly payment of $522/month.  
• A 5 year variable mortgage $100,000 at a rate of 4.50%= monthly payment of $447/month
• This gives you an average interest rate of 5.10%.

This type of mortgage is a Scotia Total Equity Plan mortgage (STEP) and has many other attractive features.

Hildegard O'Connell,
AMP Mortgage Development Manager
Phone: 519-574-2290
Fax: 519-749-0574
E-mail: hildegard.oconnell@scotiabank.com
Web: mdm.scotiabank.com/hoconnell
My commitment is to provide the best mortgage solution for you. The highest compliment my Clients make is the referral of their Family, Friends, and Business Associates. Thank you for your trust.