Green Living Show

Don't miss this year's largest consumer eco-show at the Direct Engergy Centre, Exhibition Place, Toronto Halls B & C.

Show Hours are Friday April 23rd from 10am-9pm, Saturday April 24th from 10am-9pm and Sunday April 25th from 10am-6pm.

The Green Living Show offers consumers hundreds of new and innovative products and ideas for living a greener lifestyle.

Hundreds of earth-friendly exhibitors will inspire and educate visitors on the latest green products and services in energy, food and beverage, health and wellness, green building, transportation, education, home and garden, kids and baby, fashion and beauty, eco-travel and business.

Tickets:
Adult - $12
Youth/Senior - $9
Children - Free
(Free for anyone bringing e-waste to the event)

For more info, check out www.green-living.ca

HST - Harmonized Sales Tax Explained

The long standing controversy on bringing Ontario a Value Added Tax ended permanently on June 18, 2009, when the Ontario Provincial Government announced the implementation of the Harmonized Sales Tax (HST). The effective date of this new tax will be July 1st, 2010.

This tax is called a Harmonized Sales Tax because it will effectively replace the 5% Federal Goods and Services Tax (GST) and the 8% Provincial Sales Tax (PST) thereby creating a combined 13% harmonized sales tax.

The HST will be very similar to the current GST, and as such it does not apply to the sale of resale residential properties. The new tax will apply to all real estate commissions, home inspection services and legal fees which were previously exempt from PST (8%).

The largest impact to the real estate industry will be in new construction, which will include all single family dwellings, semi-detached, condominiums and even mobile homes. The new tax will capture properties that have undergone substantial renovations, as well as vacant land. When purchasing a new home, be mindful of agreement clauses referencing taxes and specifically who is responsible for the payment of such taxes (provincial versus federal).

For properties that have undergone substantial renovation or new construction, the HST will not apply if the transaction closes before July 1, 2010 or the agreement of purchase & sale was dated prior to June 18, 2009 (even if it closes after June 30, 2010), this is effectively known as “grandfathering”. Be careful of any changes to an agreement of purchase & sale where the property is transferred after June 30, 2010 as it may invoke the HST.

In the case of new construction, if the possession and the ownership are transferred prior to July 1st, 2010 then provincial portion of the HST does not apply. If the possession or ownership of a new construction unit is transferred after June 30, 2010 then the provincial portion of the HST does apply, unless the transaction is grandfathered.

Other HST exemptions include anyone who enters into an agreement of purchase & sale before June 18, 2009 to close after June 30, 2010 and the purchaser assigns their interest via an agreement of purchase & sale to a new buyer (called the assignee). Then the assignee might not be responsible for HST, in most circumstances. However, any profit earned by the original purchaser may be subject to HST.

There are also transitional rules for the treatment of tax on real estate commissions based on the state of completion of the subject property. If the property is less than ten percent (10%) completed on July 1st, 2010 then HST will be payable on closing; if the property is greater than ten percent ( 10%) and less than ninety (90%) complete then HST will be based on the percentage of work completed; if more than ninety( 90%) completed then HST should not be payable.

It is important that you discuss your specific transaction with your real estate lawyer to ensure that any nuances or particulars are fully captured or addressed from the HST perspective. Please keep in mind that the tax is still subject to interpretation as revisions may still come forward prior to implementation.

Upgrade your home insulation today and you could be eligible to receive up to $1,000

The City of Toronto is pleased to offer HEAT – Home Energy Assistance Toronto – a new incentive program designed to help you save money and the environment.

Make your home more energy efficient with new insulation, and receive up to $1,000.

Eligible homes include low-rise residential properties, such as detached, semi-detached or town homes.

Just follow these 3 easy steps to apply:

1. Assess your home for energy leaks
Book a certified energy advisor to evaluate your home‘s energy efficiency. Learn ways to improve your insulation, and other measures to reduce your energy use.

2. Renovate your home
Upgrade your insulation and receive up to $1,000 from the City, plus another $7,500 in federal and provincial rebates. Improve other items, such as your heating and cooling system, windows and doors, and leverage even more funds – up to a combined $11,000!

3. Measure your energy savings and be rewarded!
Book your advisor to verify your home improvements and submit your grant application, which will be used by all three governments. No additional paperwork is required. Simply wait for your cheques to arrive.

Visit www.livegreentoronto.ca or call 311 for more information.

RBC: Bank of Canada -- committed to low rates

SOURCE: RBC ECONOMICS

The Bank of Canada left the overnight rate at 0.25% this morning and maintained its assessment of risks to the outlook as being balanced based on macro considerations. The Bank removed the statement about risks being "tilted slightly to the downside" because policy is operating at the effective lower bound and did not allude to its ability to use alternative measures to provide additional easing when the policy rate is at the effective lower band. The central bank, however, reiterated its conditional commitment to keep the policy rate at its current level "until the end of the second quarter of 2010" in order to ensure that inflation stays on course to meet the medium-term target.

The Bank acknowledged that the economy was "slightly" stronger than expected in the fourth quarter of 2009 although it reiterated that the "persistent" strength in the Canadian dollar and weak U.S. demand continues to provide downside risks for Canada's recovery going forward. On the other hand, the Bank cited "vigorous" domestic spending and rebounding exports as providing support to the economy in the final quarter of last year. The Bank pointed to stronger than expected global and domestic demand as providing upside risks to the outlook.

On inflation, the Bank highlighted that the core rate "has been slightly firmer than projected" pointing to both transitory factors and the faster pace of economic growth. Going forward, the Bank presented upside and downside factors for the inflation outlook citing the strength in domestic demand as well as the abundant slack in the economy and weakening wage growth.

Two key changes were made to the statement that indicates that the Bank is edging its way toward removing the extraordinary level of monetary policy stimulus. The Bank removed the statement that the overall risks to the outlook are "tilted slightly to the downside" as a result of policy operating at the lower bound. As well, the Bank did not repeat that it retains "considerable flexibility" in the conduct of policy at lower rates suggesting that the need for additional easing of policy has become increasingly unlikely. The stronger than expected report on the fourth quarter and improved labour market are consistent with a gradual removal of the accommodation being supplied to the economy. The winding down of its liquidity support programs is already underway and the first step toward removing monetary policy stimulus.

We expect that Canada's economy will grow at an average 3.6% pace in the first half of 2010 although the large output gap generated during the recession means that the core inflation rate will remain below the Bank's 2% target until late 2011. This will allow the Bank to proceed slowly with rate increases in order to ensure that the economy's positive momentum is not disturbed. We expect the Bank to increase the overnight rate by 100 basis points in the second half of the year as it begins the process of adjusting monetary policy toward a more neutral stance.

Having a Green Home Provides Savings & Peace-of-mind

When it comes to character, you just can’t beat the charm of an older home. Newly constructed homes however, come with their own unique assets, one of the most noteworthy of which is energy efficiency.

From the roof to the foundation, a number of innovative building practices often go into constructing today’s greenest homes.

Roof shingles for example, are now available in recycled materials. Environmentally friendly spray foam insulation, which can help prevent dampness, keep out pollutants and contribute to structural strength, is even partially made with recycled materials.

Roofs, walls and floors can be insulated as well with special structural panels that consist of two layers of board with insulating foam in between them. The forms that are used to mould a home’s poured concrete foundation can now also be found with insulating ability, and barriers that prevent dampness from rising into the foundation can be used at this stage of construction as well. Even exterior cladding is now insulated to offer greater energy efficiency.

If you prefer an older home though, there are many simple ways to make it more energy efficient and environmentally friendly.

Start with an Energy Star programmable thermostat that will save on heating and cooling costs when you’re not home. You can take this approach a step further by investing in a new high efficiency furnace or air conditioner. Adding insulation to the attic of your home will offer reduced energy costs for years to come as well.

A tank-less water heater will also save on energy costs by providing only the amount of heated water that you need rather than maintaining it in a cylinder.

Even making minor changes can have an impact, like choosing energy efficient light bulbs - Compact Fluorescent Lamps (CFLs) are good and Light Emitting Diodes (LEDs) are even better.

If you’re planning to make cosmetic changes to your home you can do your part for the environment by choosing wood flooring, and even carpet, made with recycled content. Look for low VOC paints and stains as well, which reduce the number of unstable, carbon-containing compounds that enter the air and react with other elements.

In the bathroom, you can keep more money in your pocket by installing low-flow faucets, showerheads and toilets.

Replacing old windows with low-E argon-filled units that have the Energy Star symbol can make a dramatic difference to your home’s energy efficiency as well.

Changing your old appliances with new Energy Star machines is also a great way to reduce energy consumption while enhancing the overall appeal of your home.

Beyond enjoying the aesthetics, cost savings and fulfillment associated with helping the environment, you can also consider getting an energy audit to take full advantage of a number of government rebates for energy-saving home improvements. Please visit www.TorontoRealEstateBoard.com to learn more about them.

Regardless of the approach you choose, remember that nothing can substitute for good-old fashioned conservation. Remember that the energy you save today may well be the energy that is needed tomorrow.

Article by Tom Lebour, President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

Housing Market Update - First Quarter 2010

The 2010 Prognosis for the Central Toronto Real Estate Market

Coming off a record 2009, the Toronto Real Estate Market for all intents and purposes is poised for a very healthy spring and early summer market. The momentum of the past six months coupled with the low listing inventory has fuelled buyers thirst for quality properties. Even in this hot market, overpriced properties will stagnate while well priced quality properties are finding willing buyers and even multiple offer scenarios.

The threat of rising interest rates later in the year is propelling many buyers to act now rather than wait out the market. The Bank of Canada’s commitment to hold the current policy rate until the second quarter of 2010 effectively serves as a catalyst for many prospective buyers. The subsequent caveat being that the Bank of Canada rate freeze is purely conditional and is subject to change should the economy take an unexpected path.

Historically, the annual real estate market has had two dramatic bell-type curve components – one in the spring and one in the fall. The summer and winter months, generally fall in the lower areas on the bell curves. The winter of 2009 wrote a different page in the history books of the Toronto real estate market, as the market did not slowdown. Multiple offers continue to be prevalent, even during the holiday period and subsequently continued into the early weeks of January 2010.

As we enter January in the Central Toronto market, inventory levels are still quite low; buyers are abundant; there is an ominous Harmonization Sales Tax looming over Ontario in July; and the Renovation Tax Credit is concluding in the weeks ahead. Some speculate that many sellers have been holding off bringing their properties on the market in order to take advantage of the Renovation Tax credit.

With consumer confidence building in the economy, we should see resale listing inventory levels start to rise in the coming weeks. The pent-up demand of unsatisfied buyers and the increased inventory should move us towards a more balanced market in the first few months of 2010.

As we experienced with the poorly thought out Toronto Land Transfer Tax, there will be an increased impetus from buyers to purchase before the HST deadline along with some sellers wanting to avoid the increased tax hit.

Post implementation of the HST, we anticipate a cooling down period for a few months as buyers, sellers and real estate professionals rest up before the start of the fall market in September.

The fall market should see a return to more balanced market where supply more closely matches demand, with the only caveat being that if rates do remain low then buyers may deplete the available supply. The prognosis overall is that the Toronto real estate market is excellent, given the net influx of migrates; the entry of many first time buyers; and the relocating baby boomers. Toronto’s world class stature will continue to be a haven for people looking to live and work in a safe, vibrant, world class environment and ensure the longevity of a healthy central Toronto real estate market well into 2011.

Economic Iinstability Number One Fear for Canadian Home Buyers: Royal LePage

Buyers remain nervous about the economy but few believe house prices will drop again, according to Royal LePage Advisor Survey

As the Canadian real estate market continues to rebound from a steep decline a year ago brought on by the recession, home buyers remain nervous about the stability of the economy, according to a survey of 1,225 Royal LePage agents and brokers across Canada. However, few buyers think home prices will decline again.

When asked to comment on the most common fears they are hearing from home buyers over the past three months, 38 percent of Royal LePage agents and brokers cited economic stability and related factors such as job security. 23 percent said home buyers fear they may not be able to sell their existing homes at the price they are hoping for, while 12 percent said buyers are hesitant because they believe prices have not yet hit the bottom of the cycle. Twenty percent of agents and brokers said they are not hearing any concerns from buyers.

The Royal LePage Advisor Survey, conducted online in November 2009, also found that an increasing number of Canadians are purchasing homes as investment properties, and almost 50 percent of brokers and agents say the number of buyers intending to renovate their properties after purchase is increasing.

“Given the volatility in the real estate markets over the past 18 months, it is not surprising that the state of the economy continues to weigh on the minds of Canadians as they consider buying a home,” said Phil Soper, president and chief executive, Royal LePage. “Canadian real estate markets are enjoying a strong recovery as 2009 draws to a close and appear poised for healthy growth in 2010. Our survey shows that consumer confidence is edging towards normal levels. Canadians clearly believe that the worst of the recession is behind them and that the real estate market is on the path to sustainable recovery.”

“The most obvious sign that market conditions are improving is found in the significantly higher unit sales volumes. That said, we have seen some significant recent increases in home prices, which is unusual at this time of year. Paradoxically, the recession is contributing to the unexpected rise in year-end house prices. On one hand, Canada’s low interest policy has stimulated demand. On the other, many Canadians who might otherwise feel comfortable putting their homes on the market don’t yet have the confidence in the state of the economy’s recovery to list their homes, which is contributing to the current supply shortage,” Soper added.

According to the Royal LePage House Price Survey for the third quarter of 2009, the economic recession halted the flow of the real estate cycle from the fourth quarter of 2008 through the first quarter of 2009, but the market is essentially now back on track. Although the supply of homes for sale continues to be constrained in many markets across Canada, Royal LePage predicts that once housing supply returns to normal levels, the economy will support modest pricing growth into 2010.