Back in 2008, the City of Toronto brought in their own "municipal land transfer tax" MLTT which was applied to purchases and paid by the buyers of real estate within the city.  For years, buyers of real estate in Ontario have paid a provincial land transfer tax based on a scale that increased as the total purchase price went higher. 

  I have been a full time REALTOR for 16+ years and the provincial land transfer tax rate has always been the same.  On the first $55,000 of the purchase price, the buyer pays a tax rate of .5%.  From $55,000 to $250,000 the tax rate increases to 1% and for any amount over $250,000 up to $400,000 the land transfer tax payable is $1.5%.  Above $400,000 and up to $2 million the rate increases to 2.0% and for any amount over $2 million the land transfer tax increases yet again to 2.5%. 

Example: It a home outside of Toronto sells for $500,000, the total provincial land transfer tax payable is as follows:

- On the first $55,000 @ .5%  (1/2%)             $275.00

- From $55,000 to $250,000 @ 1.0%          $1,950.00

- From $25,000 to $400,000 @ 1.5%          $2,250.00 

- From $400,000 to $500,000 @ 2.0%        $2,000.00

TOTAL LAND TRANSFER TAX                  $6,475.00 


 The total land transfer tax payable on that same property if located in Toronto would be the provincial tax of $6,475.00 plus the Toronto land transfer tax of another $6,475.00 for a total payable of $12,950.00.

  Municipalities across the province in general have not been prudent managers when it comes to managing expenses forcing them to look elsewhere for sources of revenue and implementing a municipal land transfer tax in Toronto was a good example.  Based on Toronto's success, many other municipalities jumped on the same tax grab bandwagon hoping to increase their revenues while jeopardising the dream of home ownership for many.  Thankfully the province stepped in and with some added pressure from the Ontario Real Estate Association (OREA) the opportunities for municipally implemented additional land transfer taxes was thwarted.

  Is it now safe to go back in the water?  No so according to an email I received today from OREA.  Apparently municipal Councillors in York Region north of Toronto have demanded that the province give the them the required municipal power to implement their own MLTT. 

  Here we go again, municipal spending continues to drain a region's economic well-being and the answer is?  Let's pass on another tax to the public.  The same politicians that advocate increased property and additional land transfer tax implementation are the same ones that lament about the lack of affordable housing.  They just don't get it.

  This is not only a provincial election year but a municipal one as well.  We had all better get out and make sure our voices are heard.  I know that I will.   

 

LED Bulbs May Not Always Be Your Ideal Choice

 In the sixteen plus years I have been in real estate, technology has played a huge role in not only expanding the real estate business but it has also impacted our daily lives in many many ways.  Between advancing my real estate skills, computer knowledge and other facets of life I have always embraced technology and it has served me well.  At the same time however, technology can sometimes backfire and I recently learned this with a problem at my house.

  As may of you are aware I recently sold my own home and moved from Collingwood to Clarksburg which is adjacent to Thornbury.  My better half and I have been living in our own homes for many years and it was time to consolidate two residence into one.  She and I both work long hours, this combined with maintaining two homes plus a cottage(s) I have owned for many years on Manitoulin Island had become more than full time jobs and it was time to simplify our lives.

  I had made many improvements to my Collingwod house including steps that were aimed at reducing my energy consumption and expense.  In addition to newer appliances, a hi-efficiency gas furnace and central air conditioner I had also switched most of my interior lighting to LED's. One area in my home where the LED lights backfired so-to-speak with on my garage door opener. The standard incandescent light bulbs on my opener were always burning out mostly the result of the excess vibration they had to endure from the opener itself every time the door was opened or closed.  Even rough service bulbs seemed to fail fairly often so I switched the standard bulbs over to LED's.  I also did the same on mt spouse's garage door opener.

  Things worked fine with better lighting in the both garages other than we found the garage door remotes had lost some of their effective range and they would often fail to activate the door openers unless you were very close by.  Ultimately I discovered that the problem was not the opener or the remotes, it was the LED bulbs.  LED bulbs have a frequency of their own and this was creating a conflict with the frequencies of our garage door openers and their respective remotes.  Once I removed the LED bulbs and replaced them with normal incandescent bulbs the remotes went back to working as they always had.

  A move that was implemented to lengthen the life of the garage opener light bulbs ended up causing more frustration than just having to replace the standard type of bulbs on a somewhat regular basis.  If you are having trouble with the performance of your garage door opener and you too have installed LED bulbs on the unit, this is more than likely the problem.

  We have plenty of LED bulbs throughout the interior of our Clarksburg home. The garage door works perfectly with the tried and true incandescent filament type bulbs, I will just have to be content replacing the door opener bulbs more frequently when they fall victim to the wear and tear they are subject to via the opening and closing of the garage door.  Lesson learned.


     

What A Difference A Year Makes!

  After ending 2017 with another year of record MLS® real estate sales in southern Georgian Bay with sales exceeding $1 billion, 2018 has gotten off to a much slower start.

  MLS® sales reported by the Southern Georgian Bay Association of REALTORS® to the end of February totalled $93.0 million, down 25% from the $124.4 million in properties sold during the first two  months of 2017 and 10% below the same period in 2016.  A total of 202 properties have sold though the local MLS® system this year, down 20% from the 254 properties sold in the first two months of last year and 29% below the 285 sales in the same period of 2016.

  While demand for area properties in 2017 remained strong and is expected to continue in 2018, sales activity suffered last year primarily resulting from inadequate inventory levels.  Year-to-date MLS® new listings total 396 properties which represents a 4% increase over the first two months of 2017.  While admittedly this is not a significant increase it is encouraging to see more inventory coming to market as we head into the spring market when buyer demand starts to increase. Another important aspect to the real estate market in 2018 will be increased mortgage rates as well as stricter rules for borrowing. Tighter lending rules that came into affect earlier this year are sure to impact market conditions overall in 2018 especially for first time buyers.  This will no doubt include what buyers are willing to pay as well as what mortgage amounts lenders are prepared to extend to their clients.  Sellers need to be conscious of these potential pitfalls when shopping for a home or condominium and this is where we as REALTORS® can be of significant value. Current market conditions are not what they were twelve or fourteen months ago and for property owners serious abut selling, now is not the time to be over-pricing your property beyond its respective market value.  Doing so will certainly impact what a buyer is willing to pay and more importantly, the amount of money their lender may be willing to extend them in the form of a mortgage.  Look for more on this topic in my upcoming posts.

  The brightest spot in the local real estate market last year was in upper end home sales.  During 2017 we experienced a very strong demand for homes priced from $500,000 and higher.  Upper end MLS® home sales in our area between $500,000 and $1 million last year totalled 571 units, an increase of 32% over 2016.  The same could be said for sales between $1 and $2 million last year where sales were up s whopping 65%. Thus far 2018 has been a much different story. Unit MLS® sales between $500,000 and $799,999 are down 28% while sales from $800,000 to $999,999 are 20% below the same time last year.  Sales in the $1 to $2 million price range are down 33% year-to-date.  Lastly there have been no sales this year over $2 million whereas in the first two months of 2017 there were three.

   It will be interesting to see how the rest of 2018 plays out.  As both a Broker and a Market Value Appraiser I watch this data very carefully in order to advise both my buyer and seller clients as to their best options in this ever changing market.  For a no obligation consultation as to your specific real estate needs and or goals, please do not hesitate to Contact Me.  For more details on the luxury home market in our area please see my Southern Georgian Bay Carriage Trade Homes blog.