It seems lately that all sorts of people are trying to put their hands in your pocket....the goverment, the bank, the government again.
There's been a great deal of contreversy about the proposed 100% increase to land transfer taxes, possible increases to property taxes and additional fees for everything else that you do in life.
On top of that, the prime rate recently increased by .25%.
The fact is, all of these changes, proposed and otherwise affect everyone, whether you are a current home owner, or just getting into the market.
I'm going to show you a few examples of how all of this is going to affect your bank account while giving you the update to sort through where all of these changes stand.
Proposed 100% increase to Land Trasfer Tax
This one is not easy to swallow, but easy to calcuate - just double the normal tax...
Purchase Price = Current tax = New total tax
$250,000 = $2,225 x 2 = $4,450
$400,000 = $4,475 x 2 = $8,950
$750,000 = $11,475 x 2 = $22,950
$1,000,000 = $16,475 x 2 = $32,950
What will happen if they don't vote to implement this tax? The city is threatening that property taxes would have to increase 18% to make up the shortfall.
Home Value = Current Property Tax = Proposed Increase
$250,000 = $2,132.11 = $387.78
$400,000 = $3,411.37 = $614.00
$750,000 = $6,396.33 = $1,511.34
$1,000,000 = $8,528.43 = $1,535.12
The proposed 18% increase to the property taxes seems to hurt a little less at first glance, but depending on how long you may own your home it could be a more painful alternative.
So where do things stand right now?
On July 16th, Toronto city council voted to defer the decision until the provincial election in late October. The apparent rationale for this is that the provincial candidates will be pressured to backfill the city's budget shortfall to win the race.
But Miller wisely warned, "This was an election issue four years ago. Anyone in this chamber who sincerely believes that the province - whoever the party is - is suddenly going to upload $750,000 million on October 23rd is sorely misguided." I tend to agree with him.
Others feel the city has not worked hard enough or smart enough to come up with alternative solutions to the shortfall and need the time to get creative.
At the end of the day, the land transfer tax increase is a clean, quick and tempting way for the city to come up with a cool $750,000 million. If you're thinking of waiting to buy until 2008, you may want to reconsider!
The Prime Rate
The prime lending rate just jumped up .25%. For those of you who like to think big, .25% may not seem like a big deal. But let's consider the impact....
The average home in Toronto is currently valued at $381,963. Say you mortgage 100% at 5.00% over 25 years.
Your montly mortgage payment would be $2,221.52. If the rate jumps .25% your payment would increase to $2,276.19.
That's a difference of $54.67 per month, or 3.64 bottles of wine depending on your taste.
But over the life of your mortgage, assuming bi-monthly payments, that's a difference of $16,299! (or 1,086 bottles of wine)
If you're thinking of putting off getting into the market, consider the incentive to invest now before rates go up any further.
Don't feel too bad about owning a home...
Although these are all big dollars involved in the cost of home ownership, don't let it get you down (but please let the city know how you feel).
After all, if you own a home, you have enjoyed some great growth in equity. Based on the average price of a home in the GTA today at $381,963, and value increases, here's what you do have in your pocket:
Average Home Price in Year = Growth in Equity
(This is tax free if it's your primary residence!)
2000 - $243,255 = $138,708
2001 - $251,508 = $130,455
2002 - $275,231 = $106,732
2003 - $293,067 = $88,896
2004 - $315,231 = $66,732
2005 - $335,907 = $46,056
2006 - $351,941 = $30,022
So keep putting money in your pocket and do your best to keep everyone else out. :)
To make your voice heard on the proposed tax increases, check out:
http://www.nohomebuyingtax.com/
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
416-728-2499
mrichards@trebnet.com
Thursday, July 19, 2007
Too Many Hands In Your Pocket!
It seems lately that all sorts of people are trying to put their hands in your pocket....the goverment, the bank, the government again.
There's been a great deal of contreversy about the proposed 100% increase to land transfer taxes, possible increases to property taxes and additional fees for everything else that you do in life.
On top of that, the prime rate recently increased by .25%.
The fact is, all of these changes, proposed and otherwise affect everyone, whether you are a current home owner, or just getting into the market.
I'm going to show you a few examples of how all of this is going to affect your bank account while giving you the update to sort through where all of these changes stand.
Proposed 100% increase to Land Trasfer Tax
This one is not easy to swallow, but easy to calcuate - just double the normal tax...
Purchase Price = Current tax = New total tax
$250,000 = $2,225 x 2 = $4,450
$400,000 = $4,475 x 2 = $8,950
$750,000 = $11,475 x 2 = $22,950
$1,000,000 = $16,475 x 2 = $32,950
What will happen if they don't vote to implement this tax? The city is threatening that property taxes would have to increase 18% to make up the shortfall.
Home Value = Current Property Tax = Proposed Increase
$250,000 = $2,132.11 = $387.78
$400,000 = $3,411.37 = $614.00
$750,000 = $6,396.33 = $1,511.34
$1,000,000 = $8,528.43 = $1,535.12
The proposed 18% increase to the property taxes seems to hurt a little less at first glance, but depending on how long you may own your home it could be a more painful alternative.
So where do things stand right now?
On July 16th, Toronto city council voted to defer the decision until the provincial election in late October. The apparent rationale for this is that the provincial candidates will be pressured to backfill the city's budget shortfall to win the race.
But Miller wisely warned, "This was an election issue four years ago. Anyone in this chamber who sincerely believes that the province - whoever the party is - is suddenly going to upload $750,000 million on October 23rd is sorely misguided." I tend to agree with him.
Others feel the city has not worked hard enough or smart enough to come up with alternative solutions to the shortfall and need the time to get creative.
At the end of the day, the land transfer tax increase is a clean, quick and tempting way for the city to come up with a cool $750,000 million. If you're thinking of waiting to buy until 2008, you may want to reconsider!
The Prime Rate
The prime lending rate just jumped up .25%. For those of you who like to think big, .25% may not seem like a big deal. But let's consider the impact....
The average home in Toronto is currently valued at $381,963. Say you mortgage 100% at 5.00% over 25 years.
Your montly mortgage payment would be $2,221.52. If the rate jumps .25% your payment would increase to $2,276.19.
That's a difference of $54.67 per month, or 3.64 bottles of wine depending on your taste.
But over the life of your mortgage, assuming bi-monthly payments, that's a difference of $16,299! (or 1,086 bottles of wine)
If you're thinking of putting off getting into the market, consider the incentive to invest now before rates go up any further.
Don't feel too bad about owning a home...
Although these are all big dollars involved in the cost of home ownership, don't let it get you down (but please let the city know how you feel).
After all, if you own a home, you have enjoyed some great growth in equity. Based on the average price of a home in the GTA today at $381,963, and value increases, here's what you do have in your pocket:
Average Home Price in Year = Growth in Equity
(This is tax free if it's your primary residence!)
2000 - $243,255 = $138,708
2001 - $251,508 = $130,455
2002 - $275,231 = $106,732
2003 - $293,067 = $88,896
2004 - $315,231 = $66,732
2005 - $335,907 = $46,056
2006 - $351,941 = $30,022
So keep putting money in your pocket and do your best to keep everyone else out. :)
To make your voice heard on the proposed tax increases, check out:
http://www.nohomebuyingtax.com/
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
416-728-2499
mrichards@trebnet.com
There's been a great deal of contreversy about the proposed 100% increase to land transfer taxes, possible increases to property taxes and additional fees for everything else that you do in life.
On top of that, the prime rate recently increased by .25%.
The fact is, all of these changes, proposed and otherwise affect everyone, whether you are a current home owner, or just getting into the market.
I'm going to show you a few examples of how all of this is going to affect your bank account while giving you the update to sort through where all of these changes stand.
Proposed 100% increase to Land Trasfer Tax
This one is not easy to swallow, but easy to calcuate - just double the normal tax...
Purchase Price = Current tax = New total tax
$250,000 = $2,225 x 2 = $4,450
$400,000 = $4,475 x 2 = $8,950
$750,000 = $11,475 x 2 = $22,950
$1,000,000 = $16,475 x 2 = $32,950
What will happen if they don't vote to implement this tax? The city is threatening that property taxes would have to increase 18% to make up the shortfall.
Home Value = Current Property Tax = Proposed Increase
$250,000 = $2,132.11 = $387.78
$400,000 = $3,411.37 = $614.00
$750,000 = $6,396.33 = $1,511.34
$1,000,000 = $8,528.43 = $1,535.12
The proposed 18% increase to the property taxes seems to hurt a little less at first glance, but depending on how long you may own your home it could be a more painful alternative.
So where do things stand right now?
On July 16th, Toronto city council voted to defer the decision until the provincial election in late October. The apparent rationale for this is that the provincial candidates will be pressured to backfill the city's budget shortfall to win the race.
But Miller wisely warned, "This was an election issue four years ago. Anyone in this chamber who sincerely believes that the province - whoever the party is - is suddenly going to upload $750,000 million on October 23rd is sorely misguided." I tend to agree with him.
Others feel the city has not worked hard enough or smart enough to come up with alternative solutions to the shortfall and need the time to get creative.
At the end of the day, the land transfer tax increase is a clean, quick and tempting way for the city to come up with a cool $750,000 million. If you're thinking of waiting to buy until 2008, you may want to reconsider!
The Prime Rate
The prime lending rate just jumped up .25%. For those of you who like to think big, .25% may not seem like a big deal. But let's consider the impact....
The average home in Toronto is currently valued at $381,963. Say you mortgage 100% at 5.00% over 25 years.
Your montly mortgage payment would be $2,221.52. If the rate jumps .25% your payment would increase to $2,276.19.
That's a difference of $54.67 per month, or 3.64 bottles of wine depending on your taste.
But over the life of your mortgage, assuming bi-monthly payments, that's a difference of $16,299! (or 1,086 bottles of wine)
If you're thinking of putting off getting into the market, consider the incentive to invest now before rates go up any further.
Don't feel too bad about owning a home...
Although these are all big dollars involved in the cost of home ownership, don't let it get you down (but please let the city know how you feel).
After all, if you own a home, you have enjoyed some great growth in equity. Based on the average price of a home in the GTA today at $381,963, and value increases, here's what you do have in your pocket:
Average Home Price in Year = Growth in Equity
(This is tax free if it's your primary residence!)
2000 - $243,255 = $138,708
2001 - $251,508 = $130,455
2002 - $275,231 = $106,732
2003 - $293,067 = $88,896
2004 - $315,231 = $66,732
2005 - $335,907 = $46,056
2006 - $351,941 = $30,022
So keep putting money in your pocket and do your best to keep everyone else out. :)
To make your voice heard on the proposed tax increases, check out:
http://www.nohomebuyingtax.com/
Who do you know who is ready to buy or sell? If you or anyone you know is ready to take the first step, share my blog with them or give me a call.
Regards,
Mark
Mark Richards
416-728-2499
mrichards@trebnet.com
June 2007 Market Watch
A few of the home buyers are finally taking a bit of a vacation from shopping.
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
June 2007 Market Watch
A few of the home buyers are finally taking a bit of a vacation from shopping.
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
But even though the number of home sales slowed down by 6% compared to record-breaking May, June's sales were still up almost 20% over the same month last year.
The average price of a home went down slightly by less than one percent to $381,963, but don't take that as a sign of a declining market. It's simply a reflection of the slower summer season.
It's still a great time to buy. Inventory is still good but other shoppers may be on holidays.
If you are selling and have flexibility in timing, try to hold off until the fall. But if you have to sell now, you will still see solid activity.
On a record-breaking note, a Forest Hill home may be the most expensive piece of Toronto residential property - it sold for $15.8 million. Just think, if they bought it next year, they might have had to pay an extra $312,000 in proposed land transfer tax increases!
Neighbourhood Watch - June 2007
E02 -The Beach (coxwell, danforth, victoria park)
Detached: $647,049
Semi-detached: $477,510
Condo: $319,133
E03 - Danforth North (DVP, victoria park, danforth)
Detached: $415,256
Semi-Detached: $388,488
Condo: $185,710
E01 - Danforth South & Riverdale (DVP, danforth, coxwell)
Detached: $459,592
Semi-Detached: $419,510
Condo:$388,280
C04 - Bedford West & Lytton Park (allen, 401, yonge, eglinton)
Detached: $836,540
Semi-Detached: $512,750
Condo: $258,986
C09 - Rosedale (yonge, st.clair, bayview, bloor)
Detached: $1,973,567
Semi-Detached: $1,448,333
Condo: $589,200
C03 - Forest Hill (allen, eglinton, yonge, st.clair)
Detached: $1,434,230
Semi-Detached: $462,913
Condo: $452,680
C12- Lawrence Park/Bedford East (yonge, 401, leslie, eglinton)
Detached: $1,548,882
Semi-Detached: $390,000
Condo: $413,892
Source: Toronto Real Estate Board April 2007 MarketWatch - for the full report, click here.
To have this blog sent to someone you know who is looking to buy or sell, send their email to info@markrichards.ca
Subscribe to:
Posts (Atom)
