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The team at Move Smartly would like to thank you, our readers, for a wonderful first year. We look forward to bringing you more original analysis and stories about your HomeBuying quest in the city we love to call home.
Since blogging and egg-nogging do not mix well, we will return in the New Year. Until then, we wish you all safe and happy holidays and a positive start to 2008.
Rachel in Condo Buying, Legal, Money
A HomeBuyer can decide to buy a new condo at any point that units are available for sale – meaning from the time the sales office is open all the way through to when the units are registered. Typically, the lowest prices are available to consumers before any construction has commenced, and this is largely what drives so many people to sign up early. The downside for the consumer is that there is more risk; for any number of reasons, the project may not be completed.
John in Toronto Real Estate News
REM, a Canadian real estate industry publication, reports that discount brokerage Realtysellers is suing the Toronto Real Estate Board for $41 Million.
The Toronto Real Estate Board (TREB) disabled Realtysellers' access to the MLS system because Realtysellers was using the MLS “in a fashion contrary to the rules and user agreements which Realtysellers had entered into as a member of TREB”.
Realtysellers along with BNV Real Estate Inc., an affiliate of Bell Canada, are the companies behind a real estate website called Real Estate Plus (www.realestateplus.ca). Real Estate Plus was downloading all homes available for sale from the Toronto MLS database and displaying them on their website. They were also displaying information that is typically restricted to realtors and not included on public sites like MLS.ca.
TREB’s MLS rules don’t allow brokerages to download all available homes for sale from the MLS database. Brokerages are allowed to download their own listings and typically only display their listings on their brokerage's website. According to the REM article:
Realtysellers is asking the court for restored access to the MLS system, as well as $10 million in 
general and special damages for breach of contract; $10 million in damages for conspiracy to injure; $10 million for breach of the Competition Act; $10 million for “intentional interference with economic interests” and $1 million in punitive damages
The outcome of this case could have a profound impact on the future of the residential brokerage industry in Toronto and set a precedent for other real estate boards in the province.
Continue reading "The Start of Fairer Competition? Toronto Real Estate Board Sued for $41 Million" »
Jesse in Toronto Neighbourhoods
During my dire
ctionally challenged tour of Fairbank, I accidentally ended up in its western neighbour of Keelesdale (check out Realosophy's neighbourhood profile for local housing and school stats). The incredibly hilly landscape initiates the beginning descent into the downtown core. The varied housing styles and streets, which Toronto Life described as both "not much to look at" and "charming," were built to accommodate this steep terrain.
I find it difficult to classify homes in this area by particular styles as no one street ha
s a homogenous feel to it. Eclectic collections of homes line the majority of streets throughout Keelesdale. All-brick bungalows and two-storeys, both detached and semi-detached, have a presence in the eastern half of Keelesdale, the area in between Fairbank's western border and Keele Street; all-siding homes also make an appearance as do brick-and-siding combos. The hills on which these homes were built forced unique construction into the planning. Second-storey front entrances are popular among the above-mentioned styles, allowing for a separate entrance into the basement, possibly for basement tenants? Wrought iron railings line driveways and front porches, and in the case of homes perched high above the streets, they line the numerous steps leading up to the front door.
Continue reading "Keelesdale: Toronto Neighbourhood Explorer" »
John in HomeBuying, Money, Toronto Real Estate News
It appears as though the Ontario government was listening to views expressed during Toronto's recent Land Transfer Tax Debate. One of the key outcomes was a compromise that included a full rebate for first-time buyers of homes and condos valued under $400,000, whether newly-constructed or resale. This differentiated the newly-introduced tax from the province's land transfer tax scheme, under which only first-time buyers of newly-constructed homes and condos qualified for the $2,000 rebate.
However, as of December 14,2007, the provincial government land transfer tax refund for first-time buyers will be extended to include resale homes. The provincial program exempts the first $227,500 of the purchase price for first-time buyers (as opposed to Toronto's threshold which is higher at $400,000).
This means that a first-time HomeBuyer purchasing a home for $400,000 in Toronto would be required to pay (after all rebates are applied) $2,475 in provincial land transfer tax and zero in Toronto land transfer tax. In contrast, all other HomeBuyers purchasing the same house would be required to pay around $8,200 in combined city and provincial taxes. (The Toronto Real Estate Board provides a simple calculator to approximate these tax amounts.)
From the press release:
The McGuinty government is giving all first-time homebuyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.
"Expanding this Land Transfer Tax refund is an important part of our government's commitment to helping Ontarians buying their first home," Duncan said.
Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
The expanded Land Transfer Tax Refund Program for First-time Homebuyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario's economic advantage and help manufacturers and other sectors challenged by current economic conditions.
For more information please visit: http://www.gov.on.ca/
John Pasalis is a sales associate at Prudential Properties Plus in Toronto and a founder of Realosophy. Email John
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Related Posts:
Toronto's Land Transfer Tax (or Beating a Dead Horse)
Editor's Inbox: More on Toronto's New Land Transfer Tax, HomeOwner's Energy Audits
Toronto Land Transfer Tax Approved
Targeting (Some of) Toronto: Why David Miller’s “Fair Tax Plan” Falls Short
The Land Transfer Tax: the Toronto We Want?
Urmi in Toronto Real Estate News, Urban Issues, Lifestyle
Some good news on the housing
front for recent immigrants to Canada has me thinking about integration issues this week. Not necessarily a good thing
for the poor old mentality, because thinking on this front generally hurts the deeply-conditioned mind. Pity Pavlov’s
dogs. 
First, the housing news. A new study released by Genworth Financial Canada, a mortgage default
insurance provider, reveals that immigrants are prioritizing - and
realizing -their dream of owning a home. 91% of recent immigrants
polled in Canada's major cities (Toronto, Vancouver, Montreal, Calgary
and Ottawa) listed owning a home a top priority, with 54% successfully
climbing onto the property ladder, in spite of challenges, within three years (on average) of
coming to this country. University of Alberta Professor Michael Haan, a leading expert on the
immigrant homeownership experience in Canada, suggests that immigrants are able to persevere because they have more to prove psychologically: "Some international academic studies have
strongly suggested that immigrants place a higher importance (than
native-born residents) on homeownership, and that they have additional
incentives for ownership, such as demonstrating success and permanency
to themselves and others." These stats are good news for those interested in Toronto's booming housing market and worried about potential real estate bubbles. Tangible consumer demand fueled in part by immigration is made of stronger stuff than demand fueled by the frenzied speculation of investors.
For those who hold that immigration is key to Canada's continued economic growth on other fronts, the recent Stats Canada release is also manna from heaven. Almost 50% of the GTA's population is now foreign-born, moving Toronto ahead of New York and Los Angeles in the diversity sweepstakes. The success that recent immigrants have enjoyed when it comes to buying a home no doubt contributes to the magnetism of Toronto. During a debate held earlier this year, Toronto City Councilor Olivia Chow momentarily stymied her counterparts from New York, London and Sydney with her feisty pitch to young and talented would-be immigrants: move here and chances are you won't have to buy in the boondocks. (The DVP, presumably, is purgatory of another kind.) But Chow needn't underestimate the even farther flung. Stats Can's latest 2006 Census data reveals that newer arrivals are flooding into the suburbs around Toronto, bypassing the once common stopover in the city's core. Markham leads the way with 56.5% of residents foreign-born, with Richmond Hill and Mississauga close behind at 51%.
Continue reading "Whither the Canadian Dream? Immigration, Homes and Toronto Neighbourhoods" »
John in Home Buying, Legal
Multiple offers on homes are a common occurrence in Toronto’s hot real estate market. For those unfamiliar with the dynamics of a multiple offer, go to Realosophy’s HomeBuyer’s Guide for a real life example of what you might expect.
HomeBuyers should be aware of all the potential pitfalls of the multiple offer process before submitting an offer, from knowing how to pick out a fake (phantom) multiple offer to understanding the risks of removing a condition on a home inspection. Blogger Brian Madigan reminds us of one of the pitfalls of removing a condition on financing when submitting an offer. Typically HomeBuyers do not include a condition on financing in a multiple offer scenario in order to make their offer more attractive to the seller.
Even if a HomeBuyer receives a full mortgage pre-approval from their lender prior to submitting their offer, their lender’s pre-approval would still be conditional on an appraisal of the property they are buying. This condition on an appraisal is the bank's way of telling you that the mortgage is based on what they think the house is worth, not necessarily what you pay for it. This condition can become a serious problem when a HomeBuyer removes their condition on financing and later learns that their banks appraisal for the property is lower than the price they paid for it. Let’s consider the example used in Brian’s post.
Continue reading "Potential Pitfalls of Winning a Multiple Offer" »
Jesse in Toronto Real Estate News, Toronto Condos and Lofts
The 100-year old Royal Canadian Military Institute (RCMI) is the latest Toronto landmark to be slated for new development. Tribute Community developers have proposed a high rise condominium be built on the site that currently resides at 426 University Avenue. According to the National Post, this will be the only residential building located on University Avenue between Adelaide Street and Bloor Street.
In a previous post, I had expressed my dislike for new edifice taking the place of our collective history. In the case of RCMI, a much-needed, multi-million dollar renovation runs the risk of not receiving necessary funding which could drive the building into further disrepair. Will the cannons remain? Only time will tell.
The heritage building will retain its wonderful outside appearance which will span the first three floors of the new building; RCMI will be housed within the first seven floors. Upon city approval, this building will meld, as a reader recently pointed out, the steel and concrete of our more recent history with the stone masonry of our past.
Jesse Fleming is a freelance writer based in Toronto. Email Jesse
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Photo credit: Royal Canadian Military Institute
It is not just the law, but good common sense. Make sure you have both a carbon monoxide alarm and a fire alarm in your house. Make sure you maintain the batteries. Check the batteries - it may be helpful to do this when you set your clocks back/forward. Whether you are a home owner, a renter or soon to be owner, if you live somewhere with a heat source, you need a carbon monoxide alarm. I think enough has been written on the subject to alert you to the fact that this is a serious issue, but allow me to share a personal story that will perhaps put a more tangible face on what can sound like every other cautionary tale. Just in case you think 'it can't happen to me...'
Continue reading "Carbon Monoxide Detectors and Fire Detectors " »
Interest Rates
The Bank of Canada cut interest rates by a quarter point to 4.25% this week. This move suggests that the central bank is concerned that the high loonie, the weakening US economy and the credit turmoil caused by the fallout of US subprime loans may impact the Canadian economy.
Census
Newly-released census data sheds some light on the 'most multicultural city in the world' debate we highlighted earlier this year. Figures indicate that immigrants are fueling Canada's population and workforce growth. From the Toronto Star:
Half the people in the City of Toronto are now foreign-born, according to 2006 Canadian census figures released yesterday, making it more diverse than Miami, Los Angeles or New York City.
Mortgage Fraud
The Globe and Mail reports that mortgage fraud appears to be on the rise as the Law Society of Canada is currently investigating 140 lawyers for their involvement in mortgage fraud. Title insurance is one of the best ways HomeBuyers can protect themselves from mortgage fraud.
