HST Its Impact on Hamilton-Burlington area Home Owners in 2010

How the Ontario HST Will Impact You in 2010

The Ontario Government recently enacted legislation which will implement the much-dreaded HST Tax. This new tax will take effect on July 1, 2010.
The HST tax will effectively combine the Provincial Sales Tax of 8% percent with the Federal GST Tax of 5% percent, to create a new "harmonized" total tax of 13% percent. This new tax will be applicable to many real estate services which hitherto only had one or the other tax applied.

The HST will result in a 13% tax on new home construction, but my post today will concern those ancillary costs pertaining to the buying and selling of resale residential real estate properties in Ontario...

First, the good news....there is no HST tax payable on the sale of a resale home (residential). So the single largest dollar amount exchanged is not taxable under HST.If you're considering buying an older home, you should know about the Ontario Home Energy Savings Program and Home Energy Retrofit Program which offers rebates for certain home improvements.

However, under the harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with the real estate transaction: services such as legal fees, moving costs, real estate commissions and home inspection fees. Currently, consumers only pay the 5% Goods and Services Tax (GST) on these services.

In a nutshell, after July 1, 2010, if you are a seller, there will be a 13% percent tax payable on the real estate commission you pay - currently there is only the 5% percent GST payable on this fee. Your lawyer's fee will also be subject to the 13% percent HST, as will the cost of a Condominium Status Certificate.

HST New Home Rebate

The Federal government offers a GST/HST New Housing Rebate program which provides a rebate on part of the GST or the federal part of the HST paid on the construction or purchase of most newly constructed or substantially renovated houses used as a primary place of residence.

New Residential Properties

New homes sold for more than $400,000 will generally be subject to an increase in tax under the harmonized sales tax, with homes sold for more than $500,000 being subject to a significant increase in tax. Under the HST regime, the cost to build a new home will decrease, since builders will now be able to claim credits for all of the sales tax they pay on their inputs, however, the sale of these new homes will now be subject to an additional 8% tax. Ontario has proposed a rebate of 75% of the Ontario portion of the HST (i.e. 6%) for new homes sold for under $400,000.

This, combined with the decrease in the building costs, which Ontario assumes will be passed on to purchasers, means that new homes sold for under $400,000 should be effectively taxed at the same rate under the HST as they were under the RST regime. However, the Ontario rebate begins to be phased out at $400,000, and disappears entirely at $500,000. Thus, assuming again that the builder passes the 2% savings on to the purchaser, under the new regime new homes sold for more than $500,000 will effectively be subject to an additional tax of almost 6%.

Federal statistics from 2008 indicate that roughly 23% of new homes in Ontario sold for between $400,000 and $500,000, while roughly another 23% sold for over $500,000.

EXAMPLE 1: NEW HOME - $400,000

A new home with a price tag of $400,000 will benefit from an HST rebate that should operate in the same way as the current GST new housing rebate. If, as the government predicts, the builder passes on the 2% savings to the purchaser, the $400,000 home will sell for $392,000. HST will be payable on the new home at the rate of 13%, for a total of $50,960 of HST. The Ontario component of the HST on the home will be $31,360.

Under the proposed rebate program, the purchaser will receive a rebate of $23,520
(75% of $31,360) for the provincial component, and a GST new housing rebate of $3,654. Thus, the purchase price of the home which previously would have sold for $416,850 ($400,000 plus $20,000 of GST minus a GST rebate of $3,150) will be $415,786
($392,000 plus $50,960 of HST minus $23,520 of Ontario rebate, minus $3,654 for the GST new housing rebate). If we assume that builders will pass all of their cost savings to purchasers, a $400,000 home will actually cost slightly less under the new regime.

If you are a buyer, any Home Inspection you pay for will be subject to the 13% percent HST. And so will the cost of movers hired. In addition, the cost of the CMHC premium for "high-ratio" mortgages has traditionally been taxable for PST - this amount will now be taxable for the full 13% percent HST.

So one can see that, with the introduction of the HST, whether you are buying or selling a Resale Home in Ontario, costs will be going up.

A press release from the Ontario Real Estate Association earlier this year summarized some of these changes which will take place - the example that they used was for a resale house priced at $360,000, and it was determined that the HST would add over two thousand dollars in new taxes to closing costs.

Please note, these taxes are in addition to the Land Transfer Taxes which exist for both the Province and the City of Toronto. OREA calculated that, in total, the HST would add $313 million annually in new taxes to resale home transactions.

CURRENT TAXES PAID, VERSUS THE NEW COMBINED HST TAX PAYABLE,
oN A HYPOTHETICAL $360,000 REAL ESTATE TRANSACTION:

Current Tax | New Tax | Total HST Payable

Mortgage Insurance Premiums(1) $752.40 | $470.25(2) | $1222.65
Legal Costs $50.00 | $80.00 | $130.00
Real Estate Commission(3) $900.00 | $1,440.00 | $2,340.00
Home Inpection $20.00 | $32.00 | $52.00


For More Real Estate Real Estate Issues:

Contact Jimmy Singh, B.E.;S.R.E.S.; A.H.S.
Sales Rep. at Remax Escarpment Realty Inc. Brokerage
905-575-5478

www.hamiltonhomesinfo.ca

Consumer confidence ends on a stronger footing- CREA

Canadian Real Estate Association says:Consumer confidence ends on a stronger footing.

National consumer confidence ended the year 2009 on a stronger footing compared to pre-recession levels, despite having edged down slightly the fourth quarter compared to the third quarter. According to the Conference Board of Canada’s index of consumer confidence, confidence eased slightly in the fourth quarter for the first time in three quarterly periods. The decrease in confidence reflects weakening sentiment about making major purchases.

The balance of sentiment about making major purchases, such as a home or a car, dipped slightly into negative territory in the fourth quarter. It had turned positive in the third quarter for the first time since the first quarter of 2008.

A negative balance of sentiment means more survey respondents said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This indicator is an important factor underlying the housing market.

The balance of sentiment about job growth prospects continued improving in the fourth quarter of 2008, staying positive for the second consecutive quarter. More survey respondents expect employment to pick up over the next six months, and fewer expect more layoffs.

The balance of sentiment about households’ budgetary outlook softened marginally in the fourth quarter, but remains upbeat. A positive balance of opinion means more households said they expect their household budget to improve in the next six months than said they think it will worsen.


Ontario

Consumer confidence in Ontario dipped slightly in the fourth quarter of 2009 after having risen in each of the three previous quarters, according to the Conference Board of Canada’s index of consumer confidence. The slight decline in confidence reflects weakened sentiment about households’ budgetary outlooks and about making major purchases.

The balance of sentiment about making major purchases, such as a home or a car, turned negative in the fourth quarter. In the third quarter, it had turned positive for the first time since the fourth quarter of 2007.

A negative balance of opinion means more households said it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This is an important factor underlying the housing market.

The balance of sentiment about job growth prospects improved compared to the previous quarter, turning positive for the first time since the second quarter of 2006.

The balance of sentiment about the outlook for household budgets stayed positive for the third consecutive quarter in the fourth quarter of 2009, despite having softened slightly.


British Columbia

Consumer confidence in British Columbia eased slightly in the fourth quarter of 2009, according to the Conference Board of Canada’s index of consumer confidence. Moderating confidence in the fourth quarter reflects softening sentiment about households’ budgetary outlooks, job prospects, and major purchases.

The balance of sentiment about making a major purchase, such as a home or a car, fell sharply and again turned negative in the fourth quarter. It had turned positive in the third quarter for the first time in two years.

A negative balance of opinion means more survey respondents said that it was a bad time to buy a big-ticket item, such as a home or car, than said it was a good time to do so. This indicator is an important factor underlying the housing market.

Sentiment about job growth prospects deteriorated in the fourth quarter. Although the balance of sentiment about near term job growth remained negative for the seventh consecutive quarter, it remained significantly less negative compared to where it stood at the height of the economic recession.

The balance of sentiment about households’ budgetary outlook stayed upbeat for the third consecutive quarter.

Prairie region

Consumer sentiment in the Prairie region improved for the third consecutive quarter in the fourth quarter of 2009, returning to the pre-recession level recorded in the second quarter of 2008.

Sentiment about making major purchases, such as a home or a car, improved for the fourth consecutive quarter. The balance of sentiment about making major purchases has stayed positive for two consecutive quarters, returning to levels on par with the third quarter of 2007.

A positive balance of sentiment means more survey respondents said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

Sentiment about job growth prospects continued improving, building on significant increases recorded in the previous two quarters. The balance of opinion about job growth has stayed positive for three consecutive quarters, and is also back on par with pre-recession levels.

The balance of sentiment about the outlook for household budgets edged down only marginally in the fourth quarter on 2009 compared to the previous quarter.

Quebec

Consumer confidence in Quebec eased in the fourth quarter of 2009 but remains well above levels recorded at the height of the economic recession, according to the Conference Board of Canada’s index of consumer confidence. The decrease in confidence reflects weaker sentiment about household budgets and about making major purchases.

Despite having softened compared to the previous quarter, the balance of sentiment about making major purchases, such as a home or a car, remained positive in the fourth quarter. This represents the third consecutive quarter in which the balance of sentiment about making major purchases stayed positive.

A positive balance of opinion means more households said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

The balance of sentiment about job growth prospects turned positive for the first time since the beginning of 2008.

The balance of sentiment about the outlook for household budgets for the next six months eased in the fourth quarter, but nevertheless remained positive.

Atlantic region

Consumer sentiment improved significantly in the fourth quarter of 2009, continuing its rise above pre-recession levels according to the Conference Board of Canada’s index of consumer confidence for the region. This marked the fourth consecutive increase in confidence.

Sentiment about making major purchases, such as a home or a car, held steady. The balance of sentiment about big-ticket purchases remained positive for the second consecutive quarter.

A positive balance of sentiment means more survey respondents said it was a good time to buy a big-ticket item, such as a home or car, than said it was a bad time to do so. This indicator is an important factor underlying the housing market.

After improving for a fourth consecutive quarter, the balance of sentiment about job growth became positive in the fourth quarter of 2009. This is its first positive reading since the second quarter of 2008.

The balance of sentiment about the outlook for household budgets over the next six months also improved in the fourth quarter. This marks the fourth consecutive quarter in which the balance of sentiment about the outlook for household budgets stayed upbeat.

Source: The Canadian Real Estate Association

2010 is shaping up to be a great year, from RBC

New beginnings

Turning the page on 2009 will be done with great relief almost everywhere in Canada. The past year has been, by far, the toughest since the early 1990s recession and, in some cases, the early 1980s recession. Hardship was evident from coast to coast, even in parts of the country, such as Alberta, that were previously considered almost bullet-proof.

Perhaps more importantly, however, will be the full force of fiscal and monetary stimulus kicking in. Nearly all governments at the federal, provincial and municipal levels have initiated substantial infrastructure spending programs and these will be in high gear during the year ahead.

In most cases, although not all, 2010 will be the peak of stimulus spending.

The easing of monetary policy is already having a visible impact – most notably in housing resale markets across the country – and should continue to do so despite our expectation that the Bank of Canada will gradually take its feet off the gas pedal starting mid-year. Extremely low mortgage rates have been key to the spectacular rebound in housing resale activity in every province since early 2009.

The precipitous decline in activity that started late in 2008 plunged a number of provinces – including Ontario, Alberta and British Columbia – into a deep slump through the better part of the year, which reverberated loudly in regional job markets.

The ranks of the unemployed swelled and unemployment rates surged broadly, reaching the highest levels since the 1990s in Ontario and Alberta.

While many challenges will remain, 2010 promises a widespread turnaround in economic performance, albeit a modest one at first. A more sanguine global context will sharply contrast with the meltdown on the world stage that took place in 2008 and early 2009. With the financial crisis behind us and the U.S. economy on the mend, factors “external” to the provincial economies are expected to contribute positively to growth again.

In turn, this housing resurgence should be seen as evidence that consumers are feeling more upbeat even in areas of the country such as British Columbia, Ontario and Alberta where the recession caused substantial damage.

The price tag for the fiscal stimulus is enormous – huge budget deficits.

Collectively, the provinces are projecting shortfalls totaling $38.2 billion in the 2009-10 fiscal year and at least $30.2 billion in 2010-11 (with two provinces not providing estimates), both records in terms of value. However, relative to GDP, the deficits will be modestly milder than the peaks recorded in the early 1990s.

While running up huge budget shortfalls might cause some discomfort, the alternative was even less attractive given the severity of the economic downturn. Nonetheless, returning to balance during the medium-term will be a challenge involving difficult choices.
Partly offsetting any negative impact in the medium-term will be the benefits of implementing the Harmonized Sales Tax (HST) on July 1, 2010.

Although the HST will result in certain currently exempt products and services being taxed, moving to a value-added tax structure will make the tax system more economically efficient and will improve the competitiveness of Ontario businesses by lowering the cost of doing business in the province.

Wish you & Your Family Happy Holidays !
Jimmy

Is it Time to Lock into Long term mortgage interest rates?

The question of whether to lock into the current low mortgage interest rates or continue to stay short term is a question that I often get asked.

The answer depends upon many factors including your ability to tolerate risk.

I've written many times in the past that the best route was to go short term on your mortgage, for at least the past 20 years or so. Mortgage rates are predicted to increase beginning about the middle of 2010 and some are predicting that the Bank of Canada will increase the prime rate by as much as 2.75% over the period from the middle of 2010 to the end of 2011.

If this happens, then it's likely mortgage interest rates will also increase by about the same or even more than 3% over the same period.

Once we come out of this recession and the economy starts to improve, rates will increase and we may never see these low rates again for many decades to come. It could be time to lock in for 5, 7 or even 10 years at the current rates to take advantage of these all time low mortgage interest rates.

This would indicate with almost certainty that you should lock into long term mortgages.

I wish you and your family a Merry Christmas and all the best in the New Year!

Jimmy

Ottawa may raise minimum down payment for home buyers and reduce amortization period‏

OTTAWA -- The federal government is ready to clamp down further on mortgage rules if the boom in the Canadian housing market turns into a bubble, says Finance Minister Jim Flaherty.

In an exclusive interview with Canwest News Service and Global National, Mr. Flaherty said the government is closely monitoring the red-hot housing market for signs that it is reaching "irrational" levels.

"The reality is we have low mortgage rates . . . so we can expect some upward pressure on housing," he said. "That's OK, as long as it doesn't become a bubble. We're watching that."

If necessary, the government is prepared to further tighten the conditions under which the Canada Mortgage Housing Corporation insures mortgages, the finance minister said.

In July 2008, amid the fallout from the subprime mortgage crisis in the United States, the Finance Department announced that CMHC would shorten the maximum amortization period that it will accept to 35 years from 40, as well as require a down payment of at least 5% of the value of the home. The new rules, which came into effect in October 2008, effectively made it more difficult for prospective homeowners to receive government-backed mortgages.

"If we have to, we'll do what we did last year and limit the rate of amortization further than we already did, and require higher down payments," said Mr. Flaherty.

His remarks come as some leading private-sector economists warn that the housing market might be getting ahead of itself amid a relatively modest recovery. In a recent report, Bay Street economist David Rosenberg estimated that housing prices are overvalued by as much as 15 to 35%. This week, the Canadian Real Estate Association reported that sales of existing homes spiked 73% year-over-year in November, while the national average sale price rose 19%.

"If being 15% to 35% overvalued isn't a bubble, then it's the next closest thing," said Mr. Rosenberg, chief economist for investment firm Gluskin Sheff.

In recent weeks, Bank of Canada governor Mark Carney has expressed concern about the amount of debt that Canadian households have been racking up since the central bank cut its benchmark lending rate to near zero. Mr. Flaherty also wants to remind Canadians that the easy money won't last forever.

"Interest rates are at historic lows. They are naturally going to go up," said Mr. Flaherty. "People have to make sure that the mortgage on their home that they've put on today will be affordable at higher interest rates in the future."

The discussion of a potential housing bubble shows how much the economic climate has improved since the end of 2008, when it was still unclear how the world would pull out of the global financial crisis.

Looking back, Mr. Flaherty said the turning point was a meeting of the G7 finance ministers and central bankers in October 2008, where, after "a lot of finger-pointing by the Europeans at the Americans," they agreed to backstop the world's financial system.

"We were in a situation, where the markets might not open on Monday, where banks were failing in Germany, in the United Kingdom, in the United States," the finance minister recalled. "It was quite scary,"

In January's federal budget, Mr. Flaherty announced the government would pump $61-billion in public funds into the economy over two years, the biggest stimulus package in Canadian history.

Mr. Flaherty once again predicted that next year's budget will consist largely of the second year of the stimulus plan.

"Some of the stimulus items can be tweaked, certainly, but Canadians ought not to expect any major new spending programs," he said. "It may be kind of a boring budget, but boring is just fine in 2010."

The Conservatives have repeatedly promised not to raise taxes or cut transfers to the provinces or individuals to eliminate the deficit, which is projected to hit $56-billion this fiscal year. Instead, the government plans to rely on economic growth and possibly spending restraint to make up the shortfall.

In a recent editorial, however, two former senior Finance officials, C. Scott Clark and Peter Devries, wrote that "any credible budget will have to include tax increases."

Mr. Flaherty disagrees. "The easiest thing in the world to do is raise taxes. What it does mean is you don't have to have discipline in government spending. And Canadians know that there's wasted government spending -- some degree of it."

When is the Best time to Sell Home in Greater Hamilton-Burlington Area

Do you think that it is better to purchase a home now or in the spring?


This article will discuss the pros and cons to doing either, this article will go into detail for both options.

Enjoy!

Jimmy

The spring market in the Greater Hamilton-Burlington Area is almost a legendary time. It's the time when all sellers and buyers come out of hibernation and transact real estate. But if you wait for Spring to sell your house, it may be too late.

Right Timing the Sale

If you are thinking about selling your house, you may want to do some planning now before you are ready to get your house listed on the market. This way, you can know what to expect and how long it will take. You will also have knowledge of when the best time to sell your house will be.


When is Spring in Real Estate?

Good question. When you think of Spring, you think of April showers and May flowers. But in real estate, the spring Market is half over by then. Will you have missed your buyer if you list your house in April or May? Are you still going to get the best traffic, and therefore the best offers, through your house?

Well, maybe. If you are thinking of putting your house up for sale in the Spring, you should think February. February? Yes, February. Actually, the landmark date that you should think of as the beginning of the Spring Real Estate Market is the Super Bowl. That seems to be the time when most people venture out of their houses, are settled back in after the holidays and are starting to get stir crazy. It's also a great time to start getting your house on the market for sale.



Why is February the best month to sell?

Think about if for a minute. These days, the real estate market is slowing down in many areas. Your house may take several months to sell. Most people want to find a house buy the end of June at the latest so that they can move over the summer when work loads are lighter and kids are not in school.



If you list your house in May and it takes three months to sell, you will find your self in July and in a very quiet market. However, if you list your house in February and it takes three months to sell, you will find yourself in April, with a month or two left in the busiest real estate time of the year. No worries, no pressure.


When are the Market Slowdowns?

You have nothing to loose by listing your house for sale in February. In fact, if prices are steady in your area, you can be sure that there are many, many houses for sale. If you get a jump on some of the new listings that will surely be coming on the market for Spring, you may find yourself ahead of falling prices and get more money for your house.

Additionally, when do you think the owners of those houses are waiting for to relist their houses for sale? Spring, of course. Don't you think it will be a good idea to get your house on to the market before there is so much more inventory added to the mix?

Must I sell My House in the Spring?

No. of course not. There are many reasons why other times of the year are great times to sell as well. For example; only serious buyers are house hunting in the winter time, fall market is busy because people want to move during holiday vacation and there is less inventory for sale during the summer months so you may choose this time as a better time to sell

You may find that you can not wait until Spring market and that you have to sell your house at a particular time of year. Don't worry. Find a great realtor and you should get the most that the real estate market has to offer.

Bottom Line, Don't Miss the Spring Real Estate Market

If you are targeting Spring market because you want to make the most out of the sale of your house, or if you are waiting for Spring to put your house on the market for sale, don't wait too long. You may just find out that the Spring real estate market has sprung without you.

I hope you have found this article helpful

Jimmy


What Did Your Neighbour Sell For ?
Find out at : www.JimmySingh.ca

Good News for Hamilton-Burlington Home Owners.Effective Dec 1,2009 Residential Rates have Dropped..

Did you hear the good news yet?

Residential Mortgage Rates have dropped!

Effective December 1, 2009*

Term 6 Month 1 Year 2 Year 3 Year 5 Year 10 Year Var
Rate Prime
Rate
Posted Rates 5.10% 4.10% 4.25% 5.05% 5.85% 6.90%
Best Rates 4.59% 2.75% 3.05% 3.49% 3.99% 5.34% 2.15% 2.25%

GREAT NEWS!!

3, 4, 5, 7 & 10 FIXED RATES HAVE DROPPED

ALSO---VRM rate is now 2.15%...( P-.10% )

see the current rates:
www.JimmySingh.ca

Dubai's debt..and impact on real estate prices ...

I was just reading about Dubai's debt problem the other day..& it really surprised me..

Here are some interesting facts on Dubai's debt

Property prices in Dubai are half of what they were a couple of years ago

Ben Thompson, business reporter, DubaiFinancial markets and businesses are closed here for the Eid holiday - some suggest that's why the announcement was made .

It's sparked real shock that things have come to this. Just 12 months ago, few could have believed the city would find itself asking for this lifeline.

It seems Dubai is now paying the price for living on borrowed money.Of course, everyone knew the boom couldn't last forever, but no-one expected it to collapse when, or as suddenly, as it did.

Property prices have more than halved over the past year and investors have fled.The official figure for Dubai's debt is $80bn, but talk to anyone here and the feeling is the figure is much higher. Unpaid bills, abandoned cars and empty buildings are all too obvious. Some analysts put the real figure at close to $160bn.

www.JimmySingh.ca

Housing performance in Canadian Real Estate markets expected to accelerate in 2010...says RE/MAX .

Housing performance expected to accelerate in 2010, as economic stability returns to Canadian markets, says RE/MAX

Mississauga, ON (December 3, 2009) - In the midst of one of the most tumultuous economic periods in recent history, residential real estate has proven to be a safe harbour, with sales and average price expected to post gains in most major Canadian cities in 2009, according to a report released today by RE/MAX.

The RE/MAX Housing Market Outlook for 2010 examined residential real estate trends in 23 markets. The report found that sales are forecast to recover in almost all major centres by year-end 2009, led by an anticipated 45 per cent increase in Greater Vancouver. Two markets -- Ottawa and Quebec City -- are expected to hit historic highs in the number of homes sold. Average price should post new records in 65 per cent of markets surveyed this year. As economic performance ramps up across the country, so too will residential real estate. Eighty-three per cent of markets (19/23) are expecting sales to increase over 2009 levels while housing values are forecast to escalate in 91 per cent (21/23) of Canadian centres in 2010. The remaining markets will match 2009 levels.

Approximately 465,000 homes are expected to change hands nationally in 2009, a seven per cent increase over one year ago. Canadian housing values are forecast to close the year at $318,000, up five per cent from $303,594 in 2008. By year-end 2010, the number of homes sold is predicted to climb another two per cent to 475,000 units. The average price of a home is also expected to experience an uptick, rising two per cent to $325,000 - the highest level in Canadian history.

"2009 was without question the year of the house," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "Real estate not only defied industry and analysts' predictions in 2009 -- it's performance went well beyond the realm of expectation by boosting consumer confidence levels and ultimately kick starting the national economic engine. While low interest rates were a principle factor driving home buying activity, no one can discount the value that Canadians place in owning a home."

November Resale home stats are inspiring for Hamilton-Burlington Area

(December 3, 2009 – Hamilton, Ontario) The Hamilton-Burlington area resale market reported a total of 1,082 units sold in November, indicating an increase of 59.4 per cent over the same month last year, but 0.6 per cent lower than November 2007. This indicated that the market has returned to sales levels equivalent to the period of 2005-2007.

The total unit sales for the first 11 months of 2009 are being reported at more than 3.8 per cent higher for the same period last year, while new units listed are eight per cent lower for the year-to-date, according to Multiple Listing Service® (MLS®) statistics released by the REALTORS® Association of Hamilton-Burlington (RAHB).

“Hamilton-Burlington and surrounding area is seeing an impressive market,” said Joe Ferrante, RAHB President-Elect. “With interest rates steady consumers continue to see area real estate as a sound investment” added Ferrante.

In the residential market, 12,341 properties changed hands in the 12 months beginning December 1, 2008 and ending November 30, 2009. The average price of these properties was $289,914. The number of properties listed during this period was 16,437. Compared to the preceding twelve months this is an increase of 1.9 per cent for sales, an increase of 2.1 per cent in average price and a decline in listings of 7.8 per cent.

Residential properties sold during November totalled 1,017 which included 800 freehold properties and 217 condominiums. Commercial sales for November, including industrial, farm, vacant land and business, totalled 65 units.

The average price of freehold residential properties sold in the month of November was $332,318, an increase of 7.8 per cent over November last year, and are up 5.5 per cent from last month. The average sale price reflects the dollar volume of residential sales divided by the number of total residential units sold.

In the condominium market the average price of condominiums in November was $229,490, an increase of 6.3 per cent over November 2008 and an increase of 3.8 per cent from October.
The total number of units listed for sale during November was 1,360, which is 15 per cent more than were listed in the same period in 2008, but 10.6 per cent fewer than were listed in October.

“Market trends differ between cities, and among areas and housing types within a city,” added Ferrante. “For local market expertise and information, buyers and sellers should use the professional services provided by their REALTOR®.”

Unit sales reflect “all property types” including residential, condominiums, commercial property, farmland and sale of businesses.


www.JimmySingh.ca

How Hamilton-Burlington Home Owners Can Save Hundreds of Dollars With a Free Online Home Energy Audit

My local electric company offers its customers a free online home energy audit in order to help them discover great ideas on saving energy. The electric company has been promoting the service very hard on their website and in its monthly mailings. So, I have to admit that I was intrigued by all the hoopla and decided to see how I could potentially save some money on my energy bill. The energy audit report was a free comprehensive, personalized evaluation of my household’s energy usage. The report tried to provide me with a better understanding of how I spend my energy dollars and where money is leaking out of my home.




Over the course of twenty minutes, I answered a multitude of questions about my family’s energy usage, home’s age and materials, details of our home like year built and square footage, our heating and air conditioner personal usage habits, etc. so the company and its computer algorithms could come up with an energy plan for my family.

An energy audit like this provides you with energy-saving tips customized for your home, cash rebate information about upgrades you can make to your home, specific information about your home’s efficiency needs, your energy costs as compared to similar homes in your area, and a breakdown of the household’s electricity usage. The results of your audit can give you the ability to use information to help make important decisions about your family’s energy usage.

Here are a few of the money saving tips that my home audit suggested…

Tune up your heating and air conditioning system – $50 (potential annual savings)
Heating duct repair ($200)
Energy efficient windows ($150)
Switch to CFL light bulbs ($30)
Install a programmable thermostat ($80)

Extra bonus - Be sure to check out federal and provincial tax incentives when you install energy efficient products in your home. You can qualify for hundreds of dollars of rebates on the price of the goods you buy to make your house more green.

Bottom line - The online home audit was free! You can’t beat that. For the one my electric carrier provides its customers, at the very least it will give you a few ideas on money saving tips that you may not normally think about. Maybe there are a few home improvements that you have been putting off or maybe there are a couple that you did not even know were options. That’s the great thing about free online tools like this.

www.JIMMYSINGH.ca

How Colors Evoke Your Everyday Mood ....

A Change in Season Reflects a Change in Mood


Change is in the air. Fall is here and winter isn't far away.The change in temperature serves as a signal to start focusing more on the indoors to get ready for winter.If your mood is affected by change of season ..try adding some color in your room.The easiest places to start, is in the room where you spend a majority of your time or changing your bedding and curtains is often all it takes to make a dramatic difference.


Creativity

Orange expands your thinking. It reduces self-consciousness and allows you to express yourself with confidence. Use it in your home when you want to feel younger. It is the color of laughter and celebration. Try an orange...mouse pad, child's room wall, bordered notecard.


Order
Deep blue encourages efficiency. It will purify your thinking, so you can cut through the clutter and discover what is most important in your life. It helps you integrate the big picture with the little picture. Wear dark blue when you need to make a decision. Try a deep blue...oversize tray, wastebasket, desk lamp.

Prosperity
Green increases wealth. The primary color in nature, it corresponds with life's riches. It is the color of fresh starts and growth. It will encourage you to honor your unique talents and manifest them in the material world. Try a green...checkbook, desk chair, front door.


Spirituality
Light purple is spiritual. It will help you connect to a higher plane. Purple encourages a fresh perspective on emotional issues. By reminding you that we are all connected, it will deepen your sense of humanity. Use it in your home to enhance compassion and to experience friends as family. Try a light purple...cashmere throw, yoga mat, journal.

Calm
Blue gives a sense of peace. It dissolves tension and promotes tranquillity. Light blue especially brings ease into the home and harmony into relationships. Wearing or surrounding yourself with it helps calm aggressive tendencies and eliminates discord. Try a light blue...headboard, piece of coral, painted ceiling.

Energy
Bright red will fortify you. It is a stimulant. It promotes courage and fearlessness. Use this color when you want to increase self-confidence. But too much red can make you feel overly excited or agitated. A little goes a long way. Try a bright red...dish of candy, picture frame, coffee-table book.

Concentration
Yellow increases your focus. It is known for enhancing intelligence and mental agility. It can help stimulate conversation and clarify thoughts. Try a yellow...No. 2 pencil, bookmark, pad of Post-it notes.

Love
Pink opens the heart. Gentle and soothing, pink is the color of love. It promotes tenderness and is a comfort in times of emotional transition. Use it in a room when you are trying to increase receptivity and understanding. Try a pink...cell phone cover, lightbulb, rosé wine.


Health
Green is also the color of healing. It represents nourishment and helps steady the body, balancing your equilibrium and encouraging stability. Use it to rejuvenate yourself, to promote physical and emotional well-being. Try a green...cast-iron pot, set of kitchen bowls, bath towel.

Happiness
Yellow and orange add life. These colors help dispel darkness and allow us to see the brighter side of things. Always remember, an array of color is key to happiness: You need the full range of it to feel balanced and fully alive. Try a yellow or orange...kitchen towel, throw pillow, coffee mug.

Sensuality
Deep red inspires passion. It helps awaken the libido. Use it to move you through inhibitions and emotional blocks that prevent you from expressing yourself. It will remind you to live life fully and to love your body. Try a deep red...ottoman, lampshade, accent chair.

Rest
Aqua inspires trust. This is the color to use when you need to relax. Wear or surround yourself with it if you have difficulty sleeping, dreaming, or meditating. Try an aqua...duvet, sleep mask, painted floor.

Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments.

Jimmy can be reached at:
905-575-5478 (Hamilton); 905-639-5258 (Burlington) or by email at jimmysingh@remaxescarpment.com
On the web visit :www.jimmysingh.ca

What is a Renovation Mortgage?

What is a Renovation Mortgage?

There are many homes offered for sale that have great potential but are in need of repairs or renovations. These homes are generally sold at prices that represent excellent value. While the value of these homes is attractive, financing the necessary work has often been difficult. Wouldn't it be nice if it were possible to buy that "fixer-upper" at a great price, immediately have it renovated into your dream home, and do it all with one manageable mortgage, and a minimum down payment?

Well, it's possible with a CMHC "Purchase Plus Improvements" mortgage. Now you can purchase a home, renovate it the way you like and pay for it all in one mortgage payment at first mortgage rates. All of this can be done by putting down as little as 5% of the "as improved" value.

For example, if you purchased a home for $120,000 and wanted to do $30,000 worth of renovations, CMHC will insure a mortgage based on 95% of the "as improved" value. In other words, with a down payment of $7,500 (5%) CMHC will insure a mortgage of $142,500. The key for this working is that the cost of the renovations has to be reflected in the "as improved" value of the house. In this example, CMHC would have to agree that the house would have a value of at least $150,000 after the $30,000 worth of proposed renovations were done.

The insured loan will be based on the lower of either the purchase price plus the actual cost of improvements or the "as improved" market value.

Remember, however, that in the case of 90-95% financing is only available if the lending value does not exceed the price ceiling for your area. Price ceiling are either $175,000 or $300,000. To determine which ceiling limit is applicable in your area, send me an e-mail.

How Does It Work?

When you have decided to make an offer on a house, make that offer conditional on getting a CMHC "Purchase Plus Improvements" Mortgage. Since the offer will be conditional on arranging this type of financing you are not at risk in the event that CMHC feels that the cost of the proposed renovations are not fully reflected in the "as improved" value. Next, have a qualified contractor put together a description and a cost estimate for the proposed repairs or renovations. Bring your "contractor's Estimate" along with the "offer to Purchase" . For more information on this mortgage and others, please contact me.

Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments.

Jimmy can be reached at:
905-575-5478 (Hamilton); 905-639-5258 (Burlington) or by email at jimmysingh@remaxescarpment.com
On the web visit :www.jimmysingh.ca

10 DO'S AND DONT'S FOR ONTARIO COTTAGE BUYERS BY THE WATER

Owning a vacation or recreation property can be an extremely rewarding experience! Ontario has some of best vacation and recreation real-estate available in Canada
Before you buy one , here are 10 Tips to give your shoreline a makeover and help protect environment .

1. Hardened shorelines accelerate erosion, eliminate the shoreline's "filtering" ability, degrade habitat.
Work with an expert to "soften" your shoreline; improve erosion protection with native trees, shrubs, grasses and beach logs.


2. Removal or rearrangement of natural debris leaves your shoreline vulnerable to erosion.
Resist the urge to "tidy up"; let organic debris like beach logs and fallen trees act as a natural seawall.


3. Chemical fertilizers and pesticides reduce water quality, are deadly for fish and other wildlife.
Landscape with low maintenance native plants. Mow lawns high using a mulching mower.


4. Cleared "manicured" lots lack shade and privacy. Loss of native plants leads to more erosion, runoff and work for you!
Prune trees, rather than removing. Plant native trees and shrubs to reduce erosion and absorb runoff.


5. Harmful household chemicals and cleaners damage septic systems and degrade water quality.
Use environmentally friendly products and cleaners, or alternatives like baking soda and vinegar.


6. Malfunctioning septic systems and improper waste disposal degrade water quality; can lead to beach closures for swimming and shellfish harvesting.
Repair and maintain your septic system (consult an expert). Compost house and yard waste.


7. Runoff flows over solid surfaces, accelerating erosion; excess silt degrades habitat for fish and other aquatic critters.
Repair solid surfaces with porous materials. Redirect gutter runoff into porous or vegetated areas, away from shore.


8. Inappropriate beach access, such as steep stairs, destabilizes banks and leads to increased erosion.
Share beach access with neighbors, maintaining a narrow winding trail. Avoid accessing steep banks.


9. Private docks, piers and boat ramps destroy eelgrass beds and habitat for fish and other wildlife.
Use public docks and boat launches where possible; consider replacing your dock with a low impact private access option (e.g. a mooring buoy).


10. Poorly maintained engines leak oil and other petroleum products and wste 25-40% of fuel.
Use a well-maintained electric or push mower, and a 4 or 2-stroke boat motor that meets or betters EPA 2006 guidelines.


Whether you are looking to Buy or Sell Vacation or Recreation Property by water, Call Jimmy today to provide the resources and help so you can make an informed decision.

Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments. Jimmy can be reached at:
905-575-5478 (Hamilton); 905-639-5258 (Burlington) or by email at jimmysingh@remaxescarpment.com
On the web visit www.hamiltonhomesinfo.ca

Luxury housing sales edge higher..Remax Report

Luxury housing sales edge higher

Purchasers take advantage of buying opportunities in Ontario-Atlantic Canada, says RE/MAX.
Luxury homes sales continue to accelerate as economic recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released by RE/MAX. The RE/MAX Upper End Report found that momentum is building in St. John's, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close. Sales are already on par or ahead of last year's levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.

"Twelve months of healthy home buying activity have clearly been crammed into five short months," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "It's hard to believe that the transition in the market began in May. We've seen steady upward momentum since that time, with solid year-over-year gains posted each and every month."

Pent-up demand and greater affordability have been the catalyst. Increased selection in all markets - except Greater Toronto - as well as record low interest rates have also helped fuel move-up activity from Ontario to Newfoundland.

Leading in terms of sales appreciation is London, Ontario where the number of homes sold, priced in excess of $500,000, has climbed 11 per cent from January to September 2009, compared to one year ago. Greater Toronto and Ottawa both reported a one per cent increase in the number of homes sold in the top end during the same period. Within the GTA, Richmond Hill/Thornhill is particularly heated, with sales up 24 per cent over 2008 levels, followed by Mississauga - up 10 per cent. St. John's, Newfoundland is on par with year-ago figures.

Of the six markets reporting a year-over-year decrease in sales, four are off by just a handful of transactions (10 units or less), including Halifax-Dartmouth (off eight units), Kingston & Area (off three units), Toronto - West End (off 10 units), and Oakville (off five units). Activity in the remaining two markets-Saint John and Hamilton-Burlington-is on the upswing, with the gap between 2008 and 2009 narrowing each month.

"A considerable shift is underway in the upper end," explains Polzler. "The price correction that we witnessed earlier in the year is over and prices have since firmed up. Conditions are more balanced across the board or leaning toward seller's territory once again. The one exception is the Greater Toronto Area -- now largely a seller's market -- with bidding wars making a comeback amid tight inventory levels. The strength of the luxury segment is evident. This is now a real estate market with all sectors working in tandem."

Highlights:

Upper end sales started to move upward as positive indicators of economic recovery began to emerge. The momentum is expected to continue as Canada edges closer to positive periods of GDP growth in Q4 2009 and in 2010.

Locals are fuelling luxury sales in the majority of markets surveyed. Activity among out-of-province and international purchasers has waned from one year ago, although their presence in still evident in some markets.

Sixty-one properties in Canada are currently priced over $10 million, with 18 of those located in Ontario. The priciest Ontario home is nestled in Toronto's prestigious Bridle Path area, listed at $23 million.

Three hundred properties currently listed for sale are priced over $5 million in Canada.
In Atlantic Canada, there are 22 listings in excess of $2 million - 13 in Nova Scotia, five in New Brunswick and two in Prince Edward Island. The most expensive property in Atlantic Canada is a $7.75 million estate on a bluff fronting the Atlantic Ocean on PEI's north coast.For complete report please e-mail jimmy.


Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments. Jimmy can be reached at:
905-575-5478 (Hamilton); 905-639-5258 (Burlington) or by email at jimmysingh@remaxescarpment.com
On the web visit www.hamiltonhomesinfo.ca

3 FACTORS THAT MAKE BASEMENTS WATERPROOF....

3 FACTORS CAN MAKE BETTER BASEMENTS...


The three fundamental cures for basement problems are: removing the water from the outside, using granular back fill or a drainage layer against the foundation wall and insulating on the outside of the basement. Any one could stop or prevent a problem, all three of them together is the best way to build a house.

-- To prevent water leaking into the basement, first ensure that rain gutters and landscaping do not funnel water toward the house. Basement walls should be damp-proofed on the outside at the time of construction or anytime you have to dig around the basement. But damp-proofing only resists water flow and true "water proofing" is expensive and difficult to achieve and maintain. If you have a problem and cannot get to the outside of the basement wall, you could coat the inside with a waterproofing concrete sealer, it stops the water from getting into the house but leaves the concrete saturated and open to potential freezing problems. If you use a more expensive sealer like Xypex, this will, over the course of several years, actually waterproof the wall all the way through by growing crystals to fill the pores of the concrete. But if the wall shifts and cracks again, the waiting water will still come in. If you have the courage to undertake the expensive job of digging down to the foundation, weeping tiles should be repaired or installed to help reduce the water pressure on the wall, regardless of which damp proofing or water proofing techniques you use on the outside of the wall.

-- If you do dig down around the basement, you should fill the hole with granular back fill, not the original dirt you dug out. Granular fill serves two important functions: it allows water to drain quickly to the weeping tiles and it does not permit the capillary action which causes ice lenses to develop -- hence no ad-freezing. Now despite our knowledge that this solves basement problems, few people do it because the backfill is expensive and you have to get rid of the original, usually very poor quality soil that you dug out. So today we have things called drainage layers -- either insulation with drainage characteristics, or air gap membranes. The air gap membrane looks like a plastic sheet with little egg carton indentations. This provides an air space between the soil and the wall so that if any water gets into this area, it will simply drop to the bottom and drain away with no water pressure on the wall. They work exceptionally well.
However, without functioning weeping tiles, drainage layers of any kind could collect lots of water and form a crushing ice block. As well, top soils should be more dense than the fill lower down to act a bit like an umbrella and insure better passage of water through the area than into it.

-- Exterior insulation leaves the earth just as cold as interior insulation does, but it keeps the basement wall warm. Insulation generally presents a flexible and slippery surface to the dirt (or plastic can be added for this purpose) preventing ice lenses from grabbing hold. Exterior insulation, with either a drainage function incorporated into the insulation or an air gap membrane added over the top, is the best way to build a basement.

Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments. Jimmy can be reached at:
905-575-5478 (Hamilton); 905-639-5258 (Burlington) or by email at jimmysingh@remaxescarpment.com
On the web visit :www.jimmysingh.ca

Benefits of New On-Demand Tankless Water Heater?

Hot water usage in Canadian households consumes between 15 and 30% of a home's energy demand. Surprisingly, the technology used to heat water is traditional and highly inefficient when compared to the tankless or on-demand technologies now used regularly in Europe and Asia.

Traditional water heaters used by most Canadian homeowners store heated water in a hot water storage tank. As hot water is used up from the storage tank, it gets replaced by incoming cold water, lowering the temperature of the stored water. An electric heating element or gas burner is activated by a thermostat to slowly reheat the water in the storage tank to a specified temperature. The storage tank stores the hot water ready for use and automatically keeps the water hot as the water gets used, or as it cools down through natural heat loss.

By contrast, an on-demand tankless unit has a heating device that is activated by the flow of water. When a hot water faucet is turned on and the water begins to flow, a sensor detects the flow and the heating elements turn on instantly to delivers a constant supply of hot water. The tankless water heater will remain on until the hot water faucet is turned off. As soon as the flow sensor detects that water has stopped flowing, the power to the unit is turned off completely.

There are numerous advantages to using a tankless water heating system, including the following key highlights:

Reduces water heating costs as much as 50%! Tankless water heaters heat entirely on demand, so when hot water is not being demanded, absolutely no energy is being consumed and the stand-by heating loss is completely eliminated.

Unlimited hot water. Tankless heaters never run out of hot water. They can literally run all day long if necessary and they will never stop producing hot water since they heat water instantly on demand-no more cold showers!

Reduces the risk of scalding. Sophisticated tankless heaters allow you to set the ongoing water temperature to a much more reasonable and safer temperature, closer to the actual temperature you will use the water at, thereby reducing the risk of scalding.

More reliable. Since hot water is not stored, tankless water heaters generally handle hard water minerals and sediments much better than conventional tanks. This makes them far less likely to develop corrosive leaks causing expensive water damage in your home. If properly maintained, an on-demand water heater will keep its efficiency throughout the entire lifetime of the unit-up to 20 years with normal maintenance!

Saves space. Tankless water heaters are about the size of a briefcase (electric units). They save valuable floor space that can be used for storage, etc., especially in condos and apartments. The only requirement is that the heater must be installed at least 3 ft. away from a door, window, or vent.

Other points to consider when selecting a tankless water heater:

You should keep in mind that a tankless water heating system will cost more to install than a traditional hot water tank-initially. However, the significant energy savings, fewer repair calls, and the ultimate convenience of having unlimited hot water at your fingertips more than makes up for this cost over the long run.

Determining the correct sizing for an on-demand water heater is crucial and to do so correctly, the peak hot water demand the unit will need to accommodate must be established. On-demand water heaters are rated according to the number of gallons of water per minute that can be raised to the desired temperature.

Also, the volume of hot water that an on-demand heater can deliver is directly correlated to its gas or electricity input. Therefore, if there are several appliances already running on natural gas or electricity, your house supply source my need to be upgraded to handle the increased demand on power. This could affect the cost and set up time of your new tankless water heater.

Comparing the old technology with the new, one thing is clear: a tankless water heater will be cheaper over the long run than a conventional water heater. If a homeowner has a choice between the two, gas or electric, in most cases the tankless gas water heater will be cheaper in the long run than an electric.

Jimmy Singh, B.E.,S.R.E.S., is a Sales Rep. with Remax Escarpment Realty inc in Hamilton/Burlington, and has been selling real estate in the Greater Hamilton Area. He also manages investment property as part of his business and has helped numerous clients invest in and profit from property investments. Jimmy can be reached at:
905-575-5478, or by email at jimmysingh@remaxescarpment.com On the web visit :www.jimmysingh.ca

The Velocity of Money and Real Estate Investing.

The Velocity of Money & Real Estate Investing.

The other day i was talking to one of my investor clients from stoneycreek who was asking is it better to put 50% down in the rental property or buy 2 rental properties with 25% down on each of them. I would like to share a lesson from Robert Kiyosaki’s book, “Who Took My Money?” I strongly encourage people to read this book. He writes that the Velocity of Money is the one reason why rich get richer and the average investor risks losing it all. In the book Robert’s says:

“As a professional investor, I want to …

1. Invest my money into an asset.
2. Get my money back.
3. Keep control of the asset.
4. Move my money into a new asset.
5. Get my money back.
6. Repeat the process.

When I teach my real estate investing concept of having homes buy more homes, I am teaching Robert’s velocity of money concept. I had read Robert’s book in 2004. Since then, I had already utilized it with my real estate investing and helped many of my real estate investor clients in Hamilton-Burlington area.

To give you an example: Let’s assume you purchase a nice single-family home for $200,000. To purchase this home, you get a 5-percent down mortgage under CMHC OR GE program and invest approximately $10,000. You use a fixed, interest-only mortgage program and your total monthly payment is, say, $1,400. You offer this home on a Rent to Own Program. Your new tenant/buyer gives you $6,000 up front on this lovely home and picks a program paying you $1,695 a month in rent.

After collecting your up-front payment, you would still have $4,000 invested in this property ($10,000 down payment less that $6,000 upfront payment received from your tenant/buyer). Your monthly cash flow would be approximately $295. (Rent of $1,695 less your payment of $1,400) It would take you another 13 1/2 months to recover your remaining $4,000 invested. ($4,000 divided by $295 monthly cash flow) In this example, it would take you around 14 months to complete steps 1, 2 and 3 above.

You would have invested in an asset, gotten ALL your money back and kept control of this same asset. Now you are on to step 4, which is move your money into a new asset. Robert continues his teaching as follows:

“A professional gambler wants to be playing the game with house money as soon as possible. While in Casino Niagra, if I had put my money back in my pocket and only played with my winnings that would have been an example of playing with house money.

The moment I began betting everything, I lost the game because I lost sight of my goal, which is to stay in the game but to play with other people’s money … not my own money.”

When you come to a point in your investing at which you have gotten all of your money back and still own the asset, you are playing with house money. In this example, after Month 14, you would still receive a cash flow of $295 a month until the property sells. This is all house money. Now let’s move on and assume that the your tenant/buyer doesn’t purchase your home during the Rent to Own Program.

In four years, your $200,000 home would be worth $243,000 with a 5-percent appreciation rate. This appreciation would ALL be house money. You could then borrow a portion of this increase in equity tax-free. You could refinance this home at 90-percentloan to value. A 90-percent loan on a $243,000 home amounts to $218,700, less your current loan on the property of $190,000 would provide you with $28,700 tax-free (Current loan is $200,000 initial purchase price less your $10,000 down payment).

At this point in time, you would have recovered your $10,000 investment, plus taken in an additional $10,030 in positive cash flow and borrowed out another $28,700 tax-free. This amounts to roughly $48,000 in four years. Remember, you still own the original asset — the $200,000 home.

Now, here is where the fun starts to happen. What can you do with the $48,000? Could you use this $48,000 as a 10-percent down payment on a $480,000 asset? Let’s assume you do. What do you think the cash flow would be on this property? Maybe $10,000 a year? In a few years, both of these properties could be refinanced to pull out more money to invest into another asset, creating even more cash flow.

For example, at an appreciation rate of 5 percent a year, the $200,000 home would be worth $295,000, and the $480,000 property would be worth $583,000. You could borrow another $100,000 out of these properties and use as a 10-percent down payment on a million-dollar property. What would the cash flow be on a million-dollarproperty?

Your assets double when you separate your equity from your properties. Can you see what I mean? Can one property properly managed make you a millionaire?Yes..you bet !

Now if you really think about what happened in this example, you will see that you were making your money work extremely hard for you. You didn’t let it sit idle as equity in a property. The key point for you to realize is that equity in a home is idle money. Idle money provides zero return.

If you only take one piece of advice from this report, make it this one …

FUNNELL ALL YOUR INVESTMENTS THROUGH YOUR REAL ESTATE;
Buy an asset (real estate) and have that asset fund your retirement plan, your car, boat etc.


fIRST buy real estate to create cash flow. Then use the cash flow to sustain your lifestyle, fund your RRSP's. As Robert Kiyosaki’s book teaches, your focus should be getting your money back and reinvesting, not letting it accumulate. He writes, “In my world, the velocity and safety of my money is far more important than the amount of my money ... Only amateur investors put their money in their retirement plan,RRSP'S and set the parking brake”

Don’t get me wrong. I just want you to fund your retirement plan, RRSP'S from house money. House money is much better than your money. Don’t you agree?


The information provided here is for educational purpose, if you are interested to discuss in details the ramifications, please consult your financial planner, your realtor for your personal investment goals.

Happy Investing,
Jimmy Singh, B.E.; S.R.E.S
Certified 50+ Real Estate Specialist
Full time Realtor & Investor Serving Hamilton-Burlington & Surrounding areas
Remax Escarpment Realty Inc. Brokerage
905-575-5478

10 FAST AND QUICK REPAIRS TO SHOWCASE YOUR HAMILTON-BURLINGTON HOME FOR SALE ...

10 FAST & QUICK REPAIRS TO SHOWCASE YOUR HAMILTON-BURLINGTON HOME FOR SALE ...

1.Wall cracks, holes or dents – fill and touch up, repair torn or loose wall paper

2.Window trim and baseboards – either touch up or replace if cracked, scratched or faded

3.Windows and window panes – replace cracked windows, make sure windows are operate properly

4.Switch plates and electrical sockets – if cracked, outdated or not working, replace them

5.Faucets and toilets – repair if leaking or dripping

6.Toilet seats – replace if cracked, broken or hinges not working

7.Flooring – repair or replace flooring that is chipped, scratched, loose, broken or missing

8.Carpets – professionally clean all carpets so they look their best

9.Cupboard doors – repair any doors that do not swing smoothly

10.Replace light fixtures that do not work properly, or are outdated, replace burnt out light bulbs

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

JIMMY SINGH, B.E. ; S.R.E.S.
REMAX ESCARPMENT REALTY INC. BROKERAGE
Specializing in Residential & Investment Real Estate
visit my website for more informative reports..
WWW.JIMMYSINGH.CA
jimmysingh@remaxescarpment.com

10 useful Tips to Prepare Young Children for a Move Buying or Selling your home in Hamilton-Burlington

Parents:
10 Tips to Prepare Young Children for a Move


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"Allowing your child to decide what to do with his/her worn toys provides them a feeling of control in a situation that is largely, out of their control."


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Over the years, many studies have been conducted to define and rank which typical life experiences cause the greatest amount of stress for the average adult. For anyone who has had to make a move, it probably comes as no surprise that moving ranks within the top 10 of the most stressful events… and once you add children to the equation, the stress level only increases.

We have compiled the following tips to help parents prepare their young children for a move, and to also help them adjust to their new home and community once the move has taken place.

1. Tell your children about the upcoming move as soon as possible.
Waiting until the For Sale sign appears on your lawn, or having your kids find out about the move from neighbors, will only leave them feeling left out and most likely, angry.

2. Discuss with your children, in an age-appropriate manner, some of the pros and cons of moving.
Most children get great comfort from simply being heard, and by being assured that their parents are committed to helping them adjust to a new environment.

3. Encourage your children to help you investigate your new community.
Most cities or towns have their own website, which they use to advertise and promote life in their community. In addition to finding information on the area lifestyle, you should also find a list of the local amenities, such as schools, places of worship, recreation centres, community sports associations, and parks. Most community sites will also include locations of the nearest shopping malls, movie theatres, and special attractions such as water parks, horse stables, and public beaches.

4. When packing, resist the urge to throw out all of your children’s old, unused toys.
Instead, ask your children to help you prepare for packing by separating their toys into three piles. Pile 1 comes with them to the new house. Pile 2 is for donating to a local shelter or community centre, and pile 3 is only for those toys that they understand are beyond repair, and for safety sake, should be thrown away. Allowing your child to decide what to do with his/her worn toys provides them a feeling of control in a situation that is largely, out of their control.

5. Pack any young children’s belongings last; allowing them prolonged access to their familiar possessions reduces their anxiety.
Ask your children to help you pack some of their belongings into boxes; and be sure to explain that the boxes, and every item that goes into the box, is going to be unpacked at the new house. Assemble some fun packing materials; a variety of brightly coloured (washable) markers for writing their name on each of their own boxes, bubble wrap for swaddling their dolls and soft toys, and a selection of stickers to decorate, and easily identify what is in each of their boxes.

6. Take your children to visit the new home at least once prior moving day, and be sure to keep the visit short, and upbeat.
7. Ask your child if he/she would like to have a moving party.
Invite his/her friends over to enjoy a night of pizza and movies. Take pictures of each guest posing with your child using an instant or digital camera. Keep one copy for your child, and give one copy to each guest to take with them.

8. Most kids make new friends at school fairly easily, but if your moving date is scheduled after the end of the school year, your child could be facing a long, lonely summer break.
To keep your child from feeling isolated you will have to take steps to help him/her meet some new friends. Soon after moving into your new home, ask your neighbors if there are children of the same age close by. Ask those neighbors who have young children if they are interested in allowing your children to play together at the local park during supervised play dates.


9. Once the move has taken place, organize a "family exploring day".Let your children help you plan an afternoon walk, or scenic drive through a specific part of your new town. By doing this, you will not only be helping your children to familiarize themselves with their new community, but your family will also be creating fun, new memories associated with your new home.

10. Involve your children in deciding how to decorate their new bedrooms.
Even the youngest child should have some of their ideas incorporated into the new design. Whether it’s a big decision (choosing the wall color), or a small decision (selecting just the right spot for his/her toy box), giving your child “a say” helps them to embrace their new space.

Above all, keep the communication lines open - before, during, and after the move. Depending on the child, it can take anywhere from a few days to many months to adjust to their new surroundings.

Joy & Happiness to you & yours !
Jimmy Singh,
sales Rep.
Remax Escarpment Realty Inc.Brokerage

Visit www.jimmysingh.ca
for more informative report Buying or Selling RealEstate in Hamilton-Burlington.

READ THIS BEFORE YOU BUY A NEW HOME IN HAMILTON-BURLINGTON AREA --FREE REPORT

10 Tips to Save You Time and Money: The Homebuyers' Guide to NEW HOMES



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"...read This BEFORE You Visit Your First Model Home!"


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When shopping for your home, you'll discover that most homes on the market are resales. Yet, one out of four homebuyers purchases a new home. Both new homes and resales offer advantages. Before you make a decision, let's . . .

Compare These Points!
New Homes
offer innovative use of space and style
greater energy efficiency
a choice of options and upgrades
everything is new, and modern.

Existing Homes
on the average they are less expensive
often they are in established neighborhoods with mature landscaping
homes have already settled, eliminating possible problems that arise from this happening after the purchase of home
As you can see, there are advantages to both. Most people consider both new and existing homes before they decide to purchase. Should you be thinking about buying a new house, here are 10 points to consider before you visit your first model home.

1. Determine a Comfortable Price Range
Before you visit your first model home, sit down with your agent and do your homework. You'll want to be prepared so that you can determine a comfortable price range for your new home. If you own a home, you'll first need to know the net proceeds from its sale in order to determine how much cash you'll have to work with. Don't simply estimate this but carefully calculate every possible selling cost. If you're a first time buyer, you'll need to first qualify your income. Determine the size of your down payment, then work out a monthly debt load so you can determine a comfortable price range.

2. Sellers' Agents Versus Buyers' Agents
Here's a good point to remember. The sales agent in the model home represents the builder, not you. They are known as sellers' agents. As a buyer you can work with a buyers' agent at no additional cost. It's his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money.

3. A Builder For All Reasons
Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements.

4. Get the Facts About Your Builder
Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get "spec sheets" on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.

5. Check Out the Neighborhood
Learn as much as you can about the community.
Discover what amenities it has to offer.
Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads
Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable.
Review the rules for the homeowner's association, or find out if one will be set up.
Think of how you will be affected by commuting routes and times.
6. Choosing Options and Upgrades

The less expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding usable space like a sunroom or a powder room. These features can add the most to the resale value of your home. Upgrading means selecting quality above "builder standard" such as carpeting, ceramics, detailing, kitchen fixtures and appliances. Be sure to take advantage of builder incentives that offer free upgrades or credit off the sale price. Remember, you can add a deck, finished basement or landscaping later and sometimes for less money.

7. Negotiations
Often buyers don't realize that there may be room for negotiating price, upgrades or options. For example, you have some scope for negotiating with the builder if s/he has a completed a home but hasn't sold it. Also some "premium lots" are priced higher and are sometimes saved to be sold last. Keep in mind that typically, all lots cost the builder the same, so be sure to enquire about lot pricing. Builders may offer discounts or special financing to help close a sale.

8. Be Sure the Contract Works in Your Favor!
When spelling out the particulars of an agreement with your builder, ensure you protect yourself by having safeguards written into the agreement, such as:

placing your deposit in escrow
detailing your upgrades;
allowing you access to the construction site to check on progress;
a 30-day advance notice of the closing date.
an explanation of what the fine print means in the warranties of the builder and manufacturer.
9. Financing - What's Best for You?
Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However, because "home loan" lending is highly competitive, you have many financing choices other than those being offered by the builder. Shop around for everything, from rates to lender fees. Appraisals, inspections, surveys, attorneys and closing fees can vary as well.

10. Just Because it's New.... - Doesn't Mean it's Perfect
Yes it's new and typically it's built with modern materials that are durable, low maintenance, stronger, quieter, and safer. But because nothing is perfect, even if it's new, consider hiring a reputable, licensed home inspector. Then create a builder "punch list", from what you've learned to address any problems before closing. Consider budgeting for items to be modified or added later on. Many new home buyers use a real estate agent to help them negotiate the best price and terms with the builder.

Buyer Advantages Your Builder May Not Reveal!
Here's a fact that you may not be aware of, some builders have newly-constructed homes available for immediate delivery. Usually these homes are ready to move into within 30 days. Even if some builders are eager to sell, they'll probably keep that knowledge to themselves. Immediate delivery homes are often available for various reasons:

the community, where new homes are being constructed is nearly complete, so the builder proceeds to have the on-site-contractors build "spec" homes (homes built on speculation for sale) on the last lots;
the model home is for sale;
the contract on a home has fallen through;

builders include constructing homes for immediate delivery for buyers who are relocating or who have sold their previous home and need one to move into quickly.
Immediate delivery homes may be more desirable because, sometimes builders offer financing incentives or free options. This may be done in place of chopping prices to appeal to buyers purchasing later in the building phase. An immediate delivery home is an advantageous way to purchase a home if you need to move in quickly, or need a physical space to walk through and see before you sign a contract. Be sure to enquire.

If you are looking to buy a new home, feel free to call me to know your options ,learn inside secrets builder's Sales rep. use to charge thousand $$$ extra !!How to Protect yourself to avoid overpaying ?
Good Luck !

Jimmy
Jimmy Singh, B.E.; S.R.E.S.
Sales Rep.
Certified 50+ & Seniors Real Estate Specialist
Remax Escarpment Realty Inc. Brokerage
Serving Hamilton/Burlington Real Estate Market
905-575-5478(Hamilton) 905-639-5258 (Burlington)
www.hamiltonhomesinfo.ca

Residential Tenacies Act (RTA) ontario De-Mystified for local Hamilton-Burlington landlords

Following are the important issue when it comes to landlords and tenants and The Residential Tenancies Act is law in Ontario.

Statutory law for residential tenancies in Ontario now comes under The Residential Tenancies Act (2006), replacing the Tenant Protection Act.

This new statute became effective on January 21, 2007

The major changes under the residential tenancies act (2006) effective January 31, 2007 are


•The Landlord and Tenant Board is responsible for all matters regulated under the residential tenancies act, there is a local office here in Mississauga and Toronto
•The landlord must give new tenants a pamphlet with information on the responsibilities of landlords and tenants, the role of the Landlord and the Tenant Board and contact details for the board. The pamphlet is available through the Landlord and Tenant Board or at this link: http://www.ltb.gov.on.ca/graphics/249749.pdf
•The landlord can apply to the Landlord and Tenant Board for any justifiable increase in rent by more than the rent control guideline, if taxes, charges, or utilities have increased. If utility costs or taxes go down, the rent must also go down.
•IF the rent increase application is for capital expenditures or security services, there is a limit or three percent above the guideline for a maximum of three years. Once the capital expenditure is fully paid for, the rent must go down for any tenants who were living there at the time of the increase.
•At a hearing for a rental increase above the guideline, the board can decide to deny or delay the rent increase if there are serious outstanding maintenance issues for work orders on the property
•The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is the rate of inflations.
•The rate of interest that a landlord must pay to a tenant on a last month's rent deposit every year is the same as the annual rent increase guideline and landlords can use the interest to top up the last month's rent to keep it current.
•There is a shorter eviction process for tenants who cause wilful or excessive damage to a rental unit or building. This shorter process also applies to tenants who cause a disturbance in a small rental building where the landlord also resides. The notice period to the tenant is shortened to 10 days from the previous 20 days. Landlords can apply to the board for an eviction notice immediately after serving the notice.
•Except for a notice for non-payment of rent, when a notice of termination has been served on the tenant, the landlord must apply to the board for an order terminating the tenancy not later than 30 days after the date specified in the notice of termination.
Even thought het Residential Tenancies Act has replaced the Tenant Protection Act, the bulk of the legislation regarding notice periods for termination remains unchanged.

You may find additional information regarding the Landlord and Tenant Board, all of their forms and information is available online at:

http://www.ltb.gov.on.ca/en/index.html


Please email me if you have any further questions or require information on Hamilton-Burlington Rental Market.

Great Weekend,

Jimmy
www.jimmysingh.ca
jimmysingh@remaxescarpment.com

In todays market is it a good idea to rent out a investment property or home in Hamilton-Burlington area that doesn't cover operating expenses ?

One of my cliet Sandy booked a new home in Stoneycreek with a builder and want to sell for a profit, but can't right now, is there another option available to her?

In the past 8 months or so, I've had clients who have purchased a new property and have waited a year or more until the closing before they can sell the property. Normally, they would be able to make a nice profit on their investment, but this is not happening recently as often as it did over the past 10 years or so.

Sometimes a qualified buyer comes along and will pay a high enough price for the property and you can make a profit and other times you end up having to rent out the property.

The reason for this is that over the past 10 years real estate has appreciated at such a high rate per year, there has seldom been a problem with "selling for a profit" on your new property, mostly because of the extended time period from when you put in the offer until the closing.

The problem recently is that the market has cooled a little since about May of 2006 and the prices have not escalated as much as in previous years. Thus, there are other sellers that are very close to the break even point when they sell. You have to not only account for the real estate commission, but also your legal fees when you purchase and sell and the land transfer tax when you purchase plus other closing costs and disbursements. For a detailed list, read more here.

What happens is that we will end up putting the property on the market for rent and for sale and if an acceptable offer to purchase comes in before renting it out, that's great, if not then we end up renting out the property and waiting until the market value increases.

The bottom line: Be careful when purchasing a new property in the current market if you are planning on selling it right away to make a profit. Plan on renting it out if you can't sell it for a profit.

For more information please contact Jimmy Singh

Jimmy Singh, B.E.;S.R.E.S

Specializing in Residential & Investment Real Estate
RE/MAX Escarpment Realty Inc.Brokerage
BUS 905-575-5478

E-MAIL jimmysingh@remaxescarpment.com
Website: www.hamiltonhomesinfo.ca