First time buyers get a bigger tax break

To help Ontarians buy their first home, the Province of Ontario will double the maximum refund for first-time homebuyers from $2,000 to $4,000, effective January 1, 2017.  (Ontario Ministry of Finance-Land Transfer Tax)

Currently, no Land Transfer Tax is payable on the first $227,500 of the value of consideration for a first home. The value of consideration for residential properties is typically the purchase price of the property and is the amount used for calculating LTT payable.

The Ontario Real Estate Association had asked the government to expand the land-transfer tax rebate program for first-time buyers as one way to help more people accomplish their dream of getting into the housing market.
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Contact me for more information.

Reporting principal residence sales at tax time

Recent changes means  you must report any and all real estate sales at tax time.

Not only did the mortgage rules change this year, but now you are also required to report any and all real estate sales at tax time.  Yes, that includes a principal residence. 

Although the sale of your principal residence will be more of a compliance issue than an actual change in what you have to pay for your taxes, there could be implications if you fail to report a sale or misrepresent the sale and there is a great deal to consider if you have more than one property that you own.

To help you further understand the changes take a look at these 8 questions you might have about principal residence tax rules.

A woman's make-up pays the mortgage

Canadian females are better at fulfilling their mortgage obligations than males.  It has to do with their make-up.


A woman's psychological make-up actually makes them more likely to make sure the mortgage is paid. It boils down to risk aversion which women have more of than men.

Get the full story here.

You must qualify for a higher mortgage rate

Ottawa has tightened mortgage lending rules that will limit the amount many Canadians can borrow to help ensure that when interest rates rise, they’ll still be able to make their payments.

Basically the change means that borrowers must be able to qualify for their mortgage using a higher interest rate than they will actually be paying on their mortgage. With the new rules, first time home-buyers will probably have to reduce some of the things on their wish list for that first home. 

Get the full story on the changes coming into effect October 17, 2016

Surprising tips for a lush lawn

I was reading an article from the research people at Consumer Reports that said a lush lawn isn’t hard to have.  I don't totally agree with that blanket statement, but here's a few tips on your quest for the best lawn in the neighbourhood.  What is interesting about these tips is that many start with your lawn mower.

Keep your blade sharp: Sharpening your mower’s blade at the start of the season, and three to four times throughout the season, will ensure cleaner cuts and less stress to the grass.

Use your mulch setting rather than bag your clippings:  Let the clippings provide nutrients to the grass instead of just throwing them away. The clippings also provide a little extra shade.

Keep your mower’s deck clear of buildup: Grass clippings will stick to the inside of your mower’s deck and reduce airflow, which makes it difficult to cut taller grass cleanly.

Raise your mower deck up to at least three inches: Taller grass has deeper roots, and deeper roots are able to collect more of the natural moisture in the ground. Taller grass also better shades the soil beneath it, reducing evaporation.

In addition to these mower suggestions most lawn care professionals think these are also vital for a great lawn.

Water less often and more thoroughly for best results:  The average lawn requires 1 to 1.5 inches of moisture weekly.  This is enough to moisten the soil 4 to 6 inches below the surface.  Too much water can actually damage your lawn. 

Use the right fertilizer and fertilize four times annually:  Read the instructions on the fertilizer bag to ensure you are using the right fertilizer for the time of the season, but ensure your lawn gets the food it needs. You know what you feel like when you miss a meal.  Missing a lawn feeding can reduce the chances of you getting a lush lawn down the road.

Remove the weeds:  Easier said than done for most of us, but removing weeds a few at a time and reseeding bare spots will eventually pay off on your journey to a great lawn.

Enjoy your summer!

 

3 things sellers need to know about home buyers

Home buyers and sellers don't always see eye to eye when it comes to the value of home.  Here are three things that often create opposite opinions on value.

The pool for a buyer, in most cases, is a love or hate addition to the home.  Many people dream of having a pool, but there are just as many buyers who find a pool far from a valuable addition.  For home owners it's important to note that if you invest in a pool, you shouldn't bank on always getting the value back when it comes time to sell.  If a pool loving buyer comes along, you've got something to motivate them to purchase your home, but that doesn't necessarily mean the buyer is willing to pay a huge difference just because you have a pool.   

Creative gardening can be a beautiful thing, but many people are not into an entire yard that has developed over the years into a garden lover's paradise.  There are many buyers who would rather have more lawn than garden, so an entire front or backyard that has evolved into an all natural growth zone can actually lower the interest in a property.  The yard can look beautiful, but not necessarily in the eyes of some buyers.  Like putting in a swimming pool, a home owner should invest in gardens fully knowing that in most cases not all of the investment can be recouped when it's time to sell.

 
Colour is always a personal preference, but when it comes time to sell, sometimes it makes great sense to paint over wild colours so your home is more pleasing to the largest segment of buyers. Too often sellers refuse to take this issue seriously.  The colour of the exterior and interior of a home has an enormous impact on buyers and therefore it can impact the selling price.  You normally can't go wrong investing in paint as a seller.  Failing to deal with a wildly coloured room or long overdue exterior paint job is something many buyers have a hard time accepting and most important it can have an enormous impact on buyers falling in love with a seller's home.   For a seller to just leave the painting to the buyer is something many buyers just don't agree with.

For more details and suggestions on buying or selling contact me here.

A small strap that could save your home

There is a call by some for a change to the building code in Ontario to help further protect properties against hurricanes.  The call is to make it mandatory for new home construction to include hurricane straps.   The clips are small pieces of metal that bind the roof truss to the top of the wall.

At the University of Western Ontario there is a Three Little Pigs project that studies among other things hurricanes and how some structural changes can reduce serious damage during a storm. Greg Kopp with Western University is encouraging the province to utilize hurricane clips or straps based on studies from the wind tunnel at the lab.

Each clip is only a few dollars and some communities in North American already have them as part of the building code.   

Get more on the Insurance Lab for Better Homes here.