Monday, March 30, 2009

At a time when the government should be helping consumers these brainiacs have hammered another nail in the coffin of the average citizen attempting to cover it up by offering a $ 1000.00 BRIBE.
People will quickly realize that their monthly costs for electricity, natural gas, phone, cable, satellite, internet as well as their already overtaxed automobile gasoline and countless other items that are now only taxed 5% GST ( not +8% PST ) will very quickly use up that BRIBE when they all jump up 8 % more.
The following news release is from the Ontario Association of Realtors

News Release
Sales tax harmonization will hurt resale home market

(Toronto, March 26, 2009) Ontario’s REALTORS® say the McGuinty governments plan to harmonize the GST and PST will add over $2,000 to the cost of a real estate transaction, hurting the resale home market and prolonging the housing industry’s recovery from the current economic downturn.
"Now is not the time to be erecting barriers to homeownership," said Pauline Aunger, President of the Ontario Real Estate Association. "We need consumers to invest in housing to help get our economy going again."
According to the Canadian Real Estate Association, home sales in the province of Ontario were down 29 per cent in February, compared to 2008.
Under a harmonized sales tax (HST), home buyers and sellers will have to pay extra tax on a range of services associated with real estate transactions 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.
"These additional taxes could price some homebuyers, especially first-time homebuyers, right out of the market," explained Mrs. Aunger. "Harmonizing will not help homebuyers in any way."
For a resale house priced at $360,000, a HST could add over two thousand dollars in new taxes to closing costs. In total, a HST will add $313 million annually in new taxes to resale home transactions.
"In the last decade, Ontario’s homeowners have faced a barrage of new costs," said Aunger. "From municipal land transfer taxes to sky rocketing property taxes, homeowners are being pushed to the brink to accommodate increasing demands from government. A harmonized sales tax is yet another cash grab on Ontario’s already overtaxed homeowners."

Saturday, March 7, 2009

London Free Press Article from March 7, 2009

Never been a better time to buy that home .
Combined with falling house prices, real estate experts say now is the time to buy

OTTAWA -- Jim Rawson says it's a great time to buy a house.
The regional manager of Invis mortgage brokerage firm in Toronto has been in the business since 1978 and has never seen interest rates, both variable and fixed, so low. Pair that with falling housing prices and it's a no-brainer.
"People have to have somewhere to live and whether you are paying for a mortgage or paying rent, you still have to be paying to live somewhere," Rawson explains.
But something is missing in the equation. As prices for most consumer goods, cars and homes decline -- in some cases plunge -- and the cost of borrowing falls, Canadians have been hesitant to buy.
The Bank of Canada did its part this week to lure consumers and businesses out of their fox hole, dropping the overnight rate down to an unheard of 0.5% -- virtually zero.

Canada's chartered banks lowered their prime rate to 2.5% on Tuesday, shortly after the central bank moved, and by the end of the week were lowering other lending rates.
TD Canada Trust is reducing several of its posted fixed-term mortgage rates today. TD's biggest decrease was with its two-year mortgage, which falls to 5.0% from 5.75%.
Scotiabank lopped nearly two percentage points off the advertised price for its 10-year mortgage, which fell to 5.25% from 7.15%, yesterday.
Canadians have slowed down borrowing and spending, most visibly in the auto sector, which saw sales volume crash by 28% in February.

Thursday, March 5, 2009

Should I Buy or Should I Go

When do you think the best time to buy might be????
When the prices are rising ? When selection is limited because things move fast ? When Sellers are getting multiple offers ? When Realtors are phoning looking for something to sell ? When you have to decide immediately and you don't dare add conditions to your Offer in case of losing out ?


How about when there are lots of choices on the market ? When the market is slower ? When ( unfortunately ) Sellers need to downsize for fear of not making their payments ? How about when Mortgage rates are the lowest in History

National and Local housing sales are down, new constuction is almost at a standstill and according to the Canadian Real Estate Association ( CREA )National MLS® home sales activity is expected to decline in 2009 before rebounding in 2010.

On top of this; part of the federal budget, Canada's "Economic Action Plan" includes a first-time home buyers' tax credit of 15% on closing costs (to a maximum of $5,000), which would be worth $750 off a buyer's federal tax bill. They have also increased the amount that first time buyers can withdraw from an RRSP to purchase a home from $20,000 to $25,000 for individuals, and from $40,000 to $50,000 for couples.

Keeping all this in mind the answer is staightforward.