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Rising housing values and
lack of inventory
challenge first-time buyers, saysRoyal
Lepage
“Homeownership continues to be primary
objective”
While higher housing
values and tight inventory levels have hampered home-buying activity so far
this year, longer amortization periods and alternative housing types have
offset the impact on most major markets across the country, according to a
report released today byRoyal Lepage.
Despite a higher degree
of frustration in the marketplace than in previous years, theRoyal Lepage
Affordability Report found that first-time buyers, in particular, remain
steadfast in their determination to purchase a home. In fact, entry-level
purchasers are adjusting their expectations by sacrificing size, location,
and even long-term financial freedom, to overcome challenges such as rising
prices and serious supply issues. Innovative financing has become key to
homeownership in today’s environment – with longer amortization periods
gaining favour in 62 per cent of the major centres surveyed. Low or no down
payments were popular with first-time buyers in 38 per cent of markets.
Doom and gloom reports
coming from south of the border have yet to hinder overall momentum.
First-time buyers are still leading the charge, taking advantage of every
resource available to achieve homeownership. They’re determined to get into
the market sooner rather than later. If suburban locations, smaller
condominiums and town homes, or a little sweat equity is what it takes to
get into the market, these purchasers are game.
Inventory levels,
however, remain one of the foremost concerns facing purchasers across the
country. A shortage of available entry-level product was identified as a
major obstacle impeding buyer intentions in three-quarters of markets
surveyed in the report.
First-time purchasers
continue to play a pivotal role at both a local and national level. The
impact they have on the housing market is significant, as they are the
impetus for sales in the mid-to-upper price ranges. As long as this segment
of the market remains healthy, the real estate outlook will continue to be
favourable.
Although average price
is the barometer for housing values in most major centres, first-time buyers
looking to achieve homeownership consider starting prices a more meaningful
gauge of affordability. Starting prices can be substantially lower than the
market average.
The best value for the
dollar continues to be found in the suburbs. For those unwilling to
sacrifice on location, small condominium units in new developments and
condominium conversions of rental buildings offer up the next best
alternative. Condominium conversions in some of the country’s major centres
can be picked up as low as $150,000 to $175,000.
_______________________________
PRESS RELEASE, October 24th, 2007
PRESS RELEASE
Buyers Assured – No Phantom Offers
There
has been considerable press lately on Phantom Offers in our marketplace.
There is a growing perception by many that the Offer process presently
followed by our industry is flawed and could lead to problems. Royal Lepage J&D . can no longer wait for the Toronto Real Estate Board or
RECO to show leadership on Phantom Offers, and therefore has instituted the
following company wide policy – effective immediately to deal with this
perception.
Company
Policy:
In Offer
situations when Royal Lepage J&D . is representing the seller in
multiple offer scenarios, it will be the company wide policy of Royal Lepage J&D Realtors to disclose the name and company of all Realtors (in
writing),
who have
registered an offer on the property to any participating co-operating broker
when requested.
When
requested, this information will be provided to any co-operating broker
either in writing before Offers are being presented of after completing of
transaction.
Founded
in 1980, Royal Lepage J&D . is a leading brokerage firm in Toronto,
with over 450 sales professionals working out of 6 offices and over 2.5
billion in real estate sales annually.
Ken
McLachlan, Broker of Record – Royal Lepage J&D .
RE: Details of
Approved Toronto Land Transfer Tax
Toronto City Council
has approved a municipal land transfer tax that will be levied on top of
the provincial land transfer tax. TREB worked very hard to oppose this
tax and commends the efforts of REALTORS® on this issue. TREB took a
strong position to oppose this tax as unfair in principle and refused to
compromise. As a direct result of this strong position, City Council was
forced to make a number of amendments to the City’s original proposal,
including rebates for first-time buyers, a reduced rate, and
grandfathering for existing transactions.
The City has not yet
provided detailed information on administration or implementation
issues. The following is based on currently available information.
What was approved by
City Council?
A second land
transfer tax, on top of the provincial land transfer tax, at the
following rates:
Residential:
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0.5% of the
amount of the purchase price up to and including $55,000
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1% of the amount
of the purchase price between $55,000 and $400,000
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2% of the amount
of the purchase price above $400,000
Commercial /
Industrial / Etc.:
-
0.5% of the
amount of the purchase price up to and including $55,000
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1% of the amount
of the purchase price between $55,000 and $400,000
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1.5% of the
amount between $400,000 and $40 million
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1% of the amount
above $40 million
When does this take
effect?
February 1, 2008.
Are existing
transactions grandfathered?
Yes. Any
transactions where the purchaser and vendor have entered into an
Agreement of Purchase and Sale for the property prior to December 31,
2007 will be rebated the full amount of the Toronto land transfer tax.
The City has not yet provided clarification on how rebates will be
administered. If your clients have concerns, they should check with
their lawyer. Once the City of Toronto provides clarification, more
information will be provided.
What about
Agreements of Purchase and Sale signed after December 31, 2007 with
closing dates before February 1, 2008?
Purchasers with a
Purchase and Sale agreement signed after December 31, 2007 with a
closing before February 1, 2008 will not be required to pay the Toronto
Land Transfer tax.
What about
Agreements of Purchase and Sale signed after December 31, 2007 with
closing dates on or after February 1, 2008?
Purchasers with a
Purchase and Sale agreement signed after December 31, 2007 with a
closing on or after February 1, 2008 will be required to pay the full
Toronto Land Transfer tax.
Where does this
apply?
The Toronto land
transfer tax only applies to transactions within the City of Toronto.
This does NOT apply to property transactions outside of the City of
Toronto.
Are first time home
buyers affected?
First time home
buyers of new AND re-sale homes will receive a rebate of the Toronto
land transfer tax of up to $3,725 (this equals a 100% rebate on homes
purchased for up to $400,000). The City has not yet provided
clarification on how rebates will be administered. If your clients have
concerns, they should check with their lawyer. Once the City of Toronto
provides clarification, more information will be provided.
The information and opinions contained in this
web site are obtained from various sources and believed to be
reliable, but their accuracy cannot be guaranteed. The publisher
assumes no responsibility for errors and omissions, or for
damages resulting from using the published information and
opinions. This web site is provided with the understanding that
it does not render legal, accounting, or other professional
advice. Whole or partial reproduction is forbidden without the
written permission of the publisher.
Copyright 1999 Maple Tree Publishing. All rights reserved.
Legal notice
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Chaplin Estates Resident Realtor
