In any real estate purchase or sale one might think that it would be obvious that every person involved needs to be informed about what the steps are and who is involved. This means that the REALTORS®, the lawyers, the lender(s) and the buyer and seller all need to know about each other. Well the lenders really only need to be known by the party they servicing and the lawyers but the agents would be interested in knowing so that they can provide any needed information.
However, everyone needs to clearly know who the lawyers are. In Ontario, Canada, we do not have escrow services per say but everyone, or at least those that know enough to want to avoid problems, uses a lawyer to handle the closing procedures on both purchases and sales of any property. So I find it odd to have another case where a seller or purchaser has changed their lawyer without telling anyone.
I received a call from my client's lawyer the other day to inform me that the lawyer, that we had all been told was working for the other party, was not working for the other party. Luckily the closing on this home is a month away still, but this is the type of situation where problems occur.
In this situation everything is working out fine. I must stress again though, whether you are my client or not, if there are any changes that you make to the team of players that you have on your side of the transaction make sure that the other side is kept up to date on who is involved. A quick call to your agent to tell them to inform the other agent, or parties, is all that is required and it will save you a lot of grief. Do not rely on your new lawyer to introduce themselves to the other lawyer because it seems that they do not call them until they need something. Which is often too late if there are issues that need to be cleared up.
Tuesday, March 27, 2007
Saturday, March 24, 2007
Toronto's new land tax grab
Toronto is proposing it's own land transfer tax on all properties sold in Toronto. This is on top of the existing Land Transfer Tax that is levied by the Ontario government. Under the powers that were recently given to the City of Toronto, under the new City of Toronto Act, you could be required to pay an additional 0.5% of the purchase price in the form of a land transfer tax if you purchase a home in the boundaries of the City of Toronto.
This means that the average home (approx. $380,000 in Toronto for 2006) will cost an extra $1,900 that can not be put into the mortgage, according to the Toronto Real Estate Board. However, the average sale price for a home in February, in the central districts on the Toronto MLS® system, was $504,381 which would mean an extra tax of $2,521.91.
So how is this likely to effect your home's value? It could undermine the Toronto real estate markets. If you are in the upper end of homes the effects may not be initially visible, although it will make homes outside of the Toronto boundaries a lot more attractive. However, if your home is best suited for a first time home buyer then this will hit your bottom line.
A large number of first time home buyers are purchasing their home with only 5% down and a 95% mortgage. Even with this amount of leveraging they are often pressed to make the 5% and all of their closing costs. Some buyers are even getting 100% mortgages. If the buyer for your home (asking $300,000) has to take $1,500 out of their down payment to cover extra closing costs this will decrease their buying power by $30,000 (if $1,500 = 5% then 100% =$30,000). Since this will effect all homes and all buyers this is likely to decrease the value of your home by 10%.
You will also see fewer home sales as people who are using the 100% mortgage programs will have to wait longer to save up their closing costs. This could see a trend to have the seller paying for the buyer's closing costs, like you see in the USA sometimes, however that may be seen as a form of mortgage fraud depending on how you interpret the payment.
This effect on lower cost housing may dramatically effect the second home and luxury home markets. As people may need to stay in their "first step" home longer in order to save up the equity to pay for the extra closing costs. Which could take a long time if their property value drops 10% due to the introduction of this transfer tax. This could lead to a higher percentage of 95% mortgages on second home which could cause the prices in those markets to also fall by as much as 10%.
The bottom line is that a simple 0.5% land transfer tax will undermine the affordability of homes in Toronto, which is already one of the highest priced cities in Canada. Property values will get undermined, along with affordability, causing your property to lose value, which will decrease the number of sales in the Toronto area.
Studies have shown that every resale home causes around $27,000 in spin off spending. This would be for anything from new appliances to renovations. All of which generates taxes as well as boosting the economy. If the number of home sales decreases because of a newly created tax then the Toronto economy will be effected as well as the taxes that are generated through those purchases.
So what can you do? Send an email to Mayor Miller, here, to let him know that you do not approve of this tax. Also, contact your local councilors and let them know. You can find your councilor's contact information at the City’s Councillors web page.
This means that the average home (approx. $380,000 in Toronto for 2006) will cost an extra $1,900 that can not be put into the mortgage, according to the Toronto Real Estate Board. However, the average sale price for a home in February, in the central districts on the Toronto MLS® system, was $504,381 which would mean an extra tax of $2,521.91.
So how is this likely to effect your home's value? It could undermine the Toronto real estate markets. If you are in the upper end of homes the effects may not be initially visible, although it will make homes outside of the Toronto boundaries a lot more attractive. However, if your home is best suited for a first time home buyer then this will hit your bottom line.
A large number of first time home buyers are purchasing their home with only 5% down and a 95% mortgage. Even with this amount of leveraging they are often pressed to make the 5% and all of their closing costs. Some buyers are even getting 100% mortgages. If the buyer for your home (asking $300,000) has to take $1,500 out of their down payment to cover extra closing costs this will decrease their buying power by $30,000 (if $1,500 = 5% then 100% =$30,000). Since this will effect all homes and all buyers this is likely to decrease the value of your home by 10%.
You will also see fewer home sales as people who are using the 100% mortgage programs will have to wait longer to save up their closing costs. This could see a trend to have the seller paying for the buyer's closing costs, like you see in the USA sometimes, however that may be seen as a form of mortgage fraud depending on how you interpret the payment.
This effect on lower cost housing may dramatically effect the second home and luxury home markets. As people may need to stay in their "first step" home longer in order to save up the equity to pay for the extra closing costs. Which could take a long time if their property value drops 10% due to the introduction of this transfer tax. This could lead to a higher percentage of 95% mortgages on second home which could cause the prices in those markets to also fall by as much as 10%.
The bottom line is that a simple 0.5% land transfer tax will undermine the affordability of homes in Toronto, which is already one of the highest priced cities in Canada. Property values will get undermined, along with affordability, causing your property to lose value, which will decrease the number of sales in the Toronto area.
Studies have shown that every resale home causes around $27,000 in spin off spending. This would be for anything from new appliances to renovations. All of which generates taxes as well as boosting the economy. If the number of home sales decreases because of a newly created tax then the Toronto economy will be effected as well as the taxes that are generated through those purchases.
So what can you do? Send an email to Mayor Miller, here, to let him know that you do not approve of this tax. Also, contact your local councilors and let them know. You can find your councilor's contact information at the City’s Councillors web page.
Sunday, March 11, 2007
Richmond Hill Home Sales Statistics - February 2007
Richmond Hill home sales in February 2007 accounted for 307 homes out of 6,772 homes sold on the Toronto MLS® system.. This make Feb 2007 the second best February ever recorded, in terms of sales volume, for the Toronto MLS® system. For Richmond Hill’s three MLS® districts there were strong sales numbers with 170 homes sold in the South end or Richmond Hill (N03 district), 80 homes sold in the N04 district and 57 houses sold in the Oak Ridge’s area or N05 district.
Here is the quick breakdown of the numbers for each district:
All Home sales in Richmond Hill, Ontario, Canada.
sales | Average Sale price | Median Sale Price | |
N03 | 170 | $425,375 | $382,000 |
N04 | 80 | $397,712 | $391,250 |
N05 | 57 | $451,554 | $445,000 |
Detached homes in Richmond Hill
Homes sold | Average sale price | Median Sale Price | |
N03 | 74 | $602,057 | $585,000 |
N04 | 52 | $449,894 | $455,000 |
N05 | 38 | $504,068 | $477,750 |
Semi-Detached homes in Richmond Hill
Homes sold | Average sale price | Median Sale Price | |
N03 | 8 | $393,363 | $399,400 |
N04 | 9 | $299,788 | $278,500 |
N05 | 4 | $336,500 | $337,500 |
Condo Apartments in Richmond Hill
Homes sold | Average sale price | Median Sale Price | |
N03 | 45 | $220,623 | $220,000 |
N04 | 5 | $174,700 | $171,000 |
N05 | 0 | N/A | N/A |
Condominium townhouses in Richmond Hill
Homes sold | Average sale price | Median Sale Price | |
N03 | 12 | $266,787 | $267,944 |
N04 | 2 | $322,250 | $322,250 |
N05 | 0 | N/A | N/A |
Townhouses in Richmond Hill
Homes sold | Average sale price | Median Sale Price | |
N03 | 29 | $373,593 | $366,000 |
N04 | 12 | $350,542 | $346,500 |
N05 | 11 | $332,273 | $331,000 |
The housing markets in Richmond Hill are still very strong and there are a lot of home buyers currently looking. For most home types the number of home sold in February relative to the number of active listings. In some areas this is adding extra competition for buyers. The one area that this is not happening is in the detached homes of the N05 district. In this area there were 213 active listings and only 38 sales.
This is most likely a reaction to homes in this area being listed higher that one can realistically sell the home. For this reason I expect a series of price reductions in the detached homes in the N05 district. This is making the assumption that a good portion of these listings are motivated to sell their home. This assumption is based on the fact that there are quite a few homes listed in areas Macleod's Landing and Tribute's Inspiration which are brand new homes and likely owned by speculators or people who's needs have changed dramatically enough to be worth thinking about moving.
Looking to find Richmond Hill homes for sale? Save time and frustration by working with me to search and negotiate a great price on your perfect home.
Have a home in Richmond Hill or the surrounding area? Find out what your Richmond Hill home’s value is with a free market evaluation.
I respect your privacy and your contact information will never be given or sold to any person or organization outside of Andrew Hodge (me) and Right At Home Realty Inc., for any reason, without your expressed permission in writing. (except when required by Canadian law)
All statistics and values posted here are for Richmond Hill, Ontario, Canada. If you want more information on real estate in Richmond Hill, Ontario, Canada please feel free to contact me through any of my websites or call me at 416-278-2335 (my direct line).
Saturday, March 03, 2007
Richmond Hill Homes for Sale - Macleod's Landing, March 3rd
Macleod's Landing, in Richmond Hill (Ontario, Canada) is located south of King Road, North of Jefferson Sideroad, East of Yonge Street and West of Bathurst. It is divided into three sections, North East corner of Yonge and Jefferson Sdrd, and extension of the Kings Hill development off of Bathurst and South of Augustine Ave and the yet to be built North West corner of Jefferson and Bathurst. This is in the Oak Ridges area of Richmond Hill and is in the N05 MLS® district on the Toronto MLS® system.
In between the three areas of residential homes, in the Macleod's Landing, you will find a large conservation area with trails connecting all three areas. There is also a golf course (Bathurst Glen) which is now the property of the town of Town of Richmond Hill and offers very reasonable prices for greens fees and its driving range. This land is zoned as "Linkage land" and will not be built on, so long as the governing bodies continue to value the environment and Oak Ridges conservation laws and the Greenbelt laws are in effect. Even the Golf course can only be changed to park or conservation land and if it is, it cannot be changed back under current laws.
Within the Macleod's Landing linkage lands there are several small lakes, forested areas and fields where wild life is health and active.
Currently there are 38 homes on the real estate markets. Six of these are rental properties ranging in price from $1,680 to $3,500 per month. Nine of the 38 homes are townhouses priced between $319,900 and $389,000. The remaining 23 homes for sale are detached homes priced between $399,900 and $788,000.
These homes are not limited to my listings so I can not provide you with specifics about the properties in a general posting like this, as that would be against several of the advertising laws and regulations for the real estate industry in Ontario.
If you would like to know more about Macleod's Landing or the homes that are available, you can call me on my direct line at 416-278-2335 or request listings for Richmond Hill Homes for sale on my website and note that you are interested in the Macleod's Landing area in the "Wish List". I will call to confirm your request before sending listings so please provide a valid email address (to send you the listings) and an active phone number where you can be reached.
You can get information for other areas at the same location if you are interested in looking at homes in those neighbourhood. Just let me know where you want to be and I will help you find the right home.
My simple Privacy policy is: Your contact information is never given/sold to any person/organization for any reason without your expressed consent in writing (outside of my support staff and within legal limits of the local laws, and the information is only used to help you with your real estate goals).
In between the three areas of residential homes, in the Macleod's Landing, you will find a large conservation area with trails connecting all three areas. There is also a golf course (Bathurst Glen) which is now the property of the town of Town of Richmond Hill and offers very reasonable prices for greens fees and its driving range. This land is zoned as "Linkage land" and will not be built on, so long as the governing bodies continue to value the environment and Oak Ridges conservation laws and the Greenbelt laws are in effect. Even the Golf course can only be changed to park or conservation land and if it is, it cannot be changed back under current laws.
Within the Macleod's Landing linkage lands there are several small lakes, forested areas and fields where wild life is health and active.
Currently there are 38 homes on the real estate markets. Six of these are rental properties ranging in price from $1,680 to $3,500 per month. Nine of the 38 homes are townhouses priced between $319,900 and $389,000. The remaining 23 homes for sale are detached homes priced between $399,900 and $788,000.
These homes are not limited to my listings so I can not provide you with specifics about the properties in a general posting like this, as that would be against several of the advertising laws and regulations for the real estate industry in Ontario.
If you would like to know more about Macleod's Landing or the homes that are available, you can call me on my direct line at 416-278-2335 or request listings for Richmond Hill Homes for sale on my website and note that you are interested in the Macleod's Landing area in the "Wish List". I will call to confirm your request before sending listings so please provide a valid email address (to send you the listings) and an active phone number where you can be reached.
You can get information for other areas at the same location if you are interested in looking at homes in those neighbourhood. Just let me know where you want to be and I will help you find the right home.
My simple Privacy policy is: Your contact information is never given/sold to any person/organization for any reason without your expressed consent in writing (outside of my support staff and within legal limits of the local laws, and the information is only used to help you with your real estate goals).
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