Canada's Government introduces financial help for first-time home buyers
Ottawa, Ontario, February 2, 2009... The Honourable Jean-Pierre Blackburn, Minister of National Revenue and Minister John Baird, Canada's Minister of Infrastructure, Transportation and Communities and Member of Parliament for Ottawa West - Nepean, highlighted key initiatives from Budget 2009:  Canada's Economic Action Plan that will benefit first-time home buyers.

Canada's Economic Action Plan supports the Canadian home construction and real estate industries, with a First-Time Home Buyers' tax credit that will provide up to $750 in tax relief to first-time home buyers; and an increase in the amount that they can withdraw from an RRSP to purchase a home from $20,000 to $25,000.

 “Buying a home for the first time is a milestone event for many Canadians and is often the single largest purchase that one can make,” said Minister Blackburn. “The proposals announced in Canada's Economic Action Plan will not just help first home buyers in the purchase of their first home.  It will also help stimulate the housing sector through increase in demand for labour, building materials and other goods.”

“Young families and others looking to buy a home for the first time deserve a break, and our government has delivered,” said Minister Baird.  “When people are buying homes, tradespeople are being put to work, businesses that make and sell building products get a boost, and the real estate industry continues to employ people too.”

“The federal government has found a way to introduce economic stimulus and housing initiatives for specific groups, and for Canadians who want to buy their first home,” said Calvin Lindberg, President of the Canadian Real Estate Association (CREA).

"This is great news for first-time homebuyers who comprise a sizable portion of our customer base. And with the new home market experiencing a slowdown in recent months,” said Robert Greenberg, Executive Vice President of Minto Developments Inc. “These types of incentives are certainly welcomed by the housing industry. When you think of how many components go into the building of a new home, a strong housing market is good for the overall economy, not just for builders."

More information on these and other measures in Canada's Economic Action Plan, a plan to stimulate the economy and protect those hit hardest by the global recession, can be found at http://www.budget.gc.ca/2009/home-accueil-eng.asp.

Home renovations are smart investments in the long term value of a home and also create economic activity by increasing the demand for labour, building materials and other goods. Renovations can also reduce energy consumption and the long-term cost of owning a home. To provide some $3 billion of much-needed fiscal stimulus and encourage investments in Canada’s housing stock, Budget 2009 proposes to implement a temporary Home Renovation Tax Credit (HRTC).

Temporary, Timely and Targeted Stimulus
The HRTC will apply to eligible home renovation expenditures for work performed, or goods acquired, after January 27, 2009 and before February 1, 2010, pursuant to agreements entered into after January 27, 2009. The temporary nature of the credit will provide an immediate incentive for Canadians to undertake new renovations or accelerate planned projects. The HRTC can be claimed for renovations and enduring alterations to a dwelling, or the land on which it sits.

How the HRTC Will Work
The 15-per-cent credit may be claimed on the portion of eligible expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350. The credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings. Properties eligible for the HRTC include houses, cottages and condominium units that are owned for personal use. Renovation costs for projects such as finishing a basement or re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

Who Can Claim the HRTC?
About 4.6 million families in Canada are expected to benefit from the credit. Taxpayers can claim the HRTC when filing their 2009 tax return.

Eligibility for the HRTC will be family-based. For the purpose of the credit, a family is generally considered to consist of an individual, and where applicable, the individual’s spouse or common-law partner. Family members will be able to share the credit.

Examples of HRTC Eligible and Ineligible Expenditures
                Eligible
• Renovating a kitchen, bathroom, or basement
• New carpet or hardwood floors
• Building an addition, deck, fence or retaining wall
• A new furnace or water heater
• Painting the interior or exterior of a house
• Resurfacing a driveway
• Laying new sod
                Ineligible
• Furniture and appliances (refrigerator, stove, couch)
• Purchase of tools
• Carpet cleaning
• Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

For the legal interpertation of The Home Renovation Tax Credit go to Canada Revenue Agency’s website at (www.cra-arc.gc.ca).

http://www.cra-arc.gc.ca/tx/ndvdls/sgmnts/hmwnr/hrtc/menu-eng.html 

 

Calgary council scraps real estate tax
  
Calgary HeraldFebruary 24, 2009 8:02 AMComments (7)   StoryPhotos ( 1 )

Council has scrapped a controversial proposal to increase the land transfer fee home buyers pay during real estate deals in order to help finance affordable housing in the city. Recommendations to explore stable sources of funding, such as a development levy on new and redeveloped property, were approved once the contentious land transfer fee was removed. Ald. Bob Hawkesworth said getting rid of that one item allowed other good measures to go forward. "I think it detracted from the overall thrust of the report and the tools we're looking for," he said. "It's quite a hot button for people, and it was taking attention away from other solutions in the report." The report looked at a number of ways to try to make it easier to build affordable housing units in the city, as well as ways to fund them. Ald. Joe Connelly disagreed even after the idea of a land transfer tax was removed, arguing that affordable housing is a provincial responsibility. "If we keep getting into the batter's box, they're never going to field a team," Connelly said. "If we continue to jump in, guess what? The province is not going to jump in." A number of aldermen said that while they'd support looking at the issues around increasing the land transfer tax -- which now costs $125 on average -- they weren't in favour of actually using it. "I for one would not support a land transfer fee when it comes back," Ald. Linda Fox-Mellway said. "But this is just investigating them all."

© Copyright (c) The Calgary Herald

Dropping a home's price bit by bit is the worst-case scenario for home sellers, weakening their position in a buyer’s market.
To endure price cut after price cut until their houses become stigmatized and hungry buyers smell blood. A series of price cuts acts as a "code" that signals to buyers that the seller is extremely motivated, and that knowledge empowers buyers to make lower offers and "stick to their guns".

But how can you avoid this unpleasant situation in today's market? The answer is to put your home on the market at the right price, and, if it doesn't sell quickly, cut the price deep and fast, so you won't be caught in a downward spiral of price reductions.

Not surprisingly, few sellers want to hear that advice. They'd rather price their homes aggressively and hope buyers will take the bait. But testing the market simply isn't a good strategy in this market, sales at a slower pace and buyers on the hunt for good deals. Buyers today are "looking at every aspect in so much more detail and trying to find out how they can get a lower price."

The price high-and-hope strategy is so ill-advised that some brokers won't accept listings they think are way overpriced. Many agents shy away from sellers who aren't realistic or won't commit to an automatic price reduction if no showings or offers have taken place within a few weeks after the home has been put on the market.

"List your property to sell, do not go fishing.'" Pricing is especially crucial today’s market.  Home prices have changed drastically from the past two years and may continue to do so, albeit perhaps more slowly.

Homeowners still cling to outdated beliefs about the value of their own home and some how feel that they are still in the boom of 2006, 2007 and the 1st part of 2008. Buyers, who are well-aware of that dynamic, will request a history of the property before they make an offer.

We attribute this gap to a combination of inattention and a fair bit of denial that causes people to believe their home is insulated from the woes of the market that affect others. If your home has been on the market for several weeks without any activity or offers, you should reassess your assumptions and rethink your pricing strategy.

Sellers and listing agents sometimes try to entice buyers with incentives such as a buyer's agent bonus, big-screen TV or brand-new car. But these extras seldom work. If you are serious about selling, you have to adjust the price to whatever it has to be to get the property sold.

No one wants to make these tough decisions, so sellers do it in increments to ease the pain. But eventually, you get to the same place by chasing the market. A series of smaller cuts, rather than one big one, can result in a slower sale and lower price.

A collective delusion may be cold comfort for home sellers who suffer the consequences of mispricing their home. Overpriced homes start out behind the market, which forces the seller to drastically cut the price or follow the market down through multiple price reductions.

As a professional agent in today’s real estate market, experience tells us that in order to be successful; we must have a commitment from our clients.  As members of the Multiple Listings Service (MLS), we have access via a computerized network to all properties for sale, no matter which real estate company has the property listed.  With a thorough and concise analysis of available properties, we are confident that together, we can find the perfect home at the right price and terms suitable to your needs.

All of this takes time and a great deal of effort. It must be remembered that an agent works solely on a commission basis and does not get paid unless a sale is complete.  Our commitment to our clients is genuine and we are willing to invest our time, energy and expense required to find you that perfect home,  but only if your commitment to us is also sincere,
Our success as Real Estate Agents is based solely on our performance.  A satisfied client will refer us to any friends or family who are interested in buying or selling a home.  In this manner, we have developed a network of people who can call on us for all their real estate needs.  In return, we have provided professional real estate advice and information to anyone with whom we have worked in the past.
 
The most important factor is the development of mutual respect and commitment. If we can work together as a team, we are confident that our efforts will lead to your real estate success.