With the switch from our current system to the new HST system looming ahead in BC and Ontario, many are wondering what the effect on real estate markets and real estate costs will be. Typically, the media and other doom-sayers exaggerate the HST as a way the government will squeeze tens of thousands of dollars more out of us when buying a home, but the situation isn’t as bad as some make it out to be.
First off, the HST only applies to new homes. Resale homes are exempt and
will remain the same as they’ve always been. However, this does not mean
that all buyers of new homes are going to be hit hard.
Buyers of new homes under $400,000 are entitled to a rebate of 6% of the
home’s final selling value, which means that they are affected much less by
the HST than those who are buying homes over that $400,000 mark. Before the
HST switch, any new homes, regardless of price, were exempt from the 8% PST.
Under HST, this 8% exists as part of a single 13% tax. Considering this,
even with the 6% rebate that is being offered under HST, one still pays out
2% more in taxes than one did before (certainly preferable, but still an
increase).
What must be considered beyond the price of the property, however, are all
the costs associated with buying and selling a home. These are not exempt
from HST, and many are going to see a stiff increase in price after HST
forces them to charge a full 13% tax – more than double the 5% in GST they
currently call for. As a seller, your commission to the Realtor is going to
see this 8% increase in tax, as well as your lawyer’s fees. As a buyer, home
inspections and moving costs will see this 8% increase, showing that prices
are going up on both sides.
The long and short of all this is that the HST definitely will increase
costs associated with real estate, both on the buying and selling side. This
is not something that anyone would wish for, but it’s also not necessarily
the tens of thousands of dollars some people seem to think it will be. The
only time you rarely need to be careful to consider new costs is when buying
a home straight from construction, but even then only if it is above the
half-million dollar mark in price.
Posted in First Time Home Buyers, General updates, Home buyer rebates, Press and publications
Tagged real estate rebates, real estate toronto, real estate ottawa, sears real estate, buying a home, buy house rebate, buying a house rebate, home buyer rebate, first time home buyer rebate
For those of you keeping up with housing prices in the GTA’s real estate market, you may have come across an article in the Globe and Mail recently about the steady climb in both high-rise condo and low-rise house prices, and the reason for this.
Interestingly enough, the two kinds of housing rose in price for two dramatically different reasons. Sales for high-rise condos were topping the numbers for the last five years, while sales for low-rise houses were the lowest in five years. One thing to consider, however, is that the amount of unsold low-rise houses for sale was one-third of what it usually was.
According to the rules of supply and demand, both these circumstances drive prices up. On one hand, having a huge demand for high-rise condos gave their price a nice boost, and on the other hand, having a low supply for low-rise houses drove their prices up through competition. Understanding the basic laws of supply and demand obviously comes in handy for anyone hoping to understand trends in real estate.
The interesting second side to this story lies in the reasons why there is such a low supply of unsold low-rise houses. As explained in the Globe and Mail article, experts say that builders are not investing in low-rise projects as much in order to keep up with what municipal governments want – high population density. High-rise projects are given top priority, and with the huge amounts of money at stake in a building project, it’s no wonder developers are sticking to what they know will be successful.
You can read the full article at: http://www.theglobeandmail.com/real-estate/slowdown-of-2008-is-hitting-home-now/article1489495/
Sears Certified Real Estate Services is proud to announce a further extension into Social Media – we have entered the realm of Facebook with our own fan page!
This fan page will be linked to our blog, so for all that use Facebook, becoming a fan will help you keep track of our posts easily.
Also, for those who have used our program and earned rewards, you can post comments and feedback on the fan page’s wall for other potential users.
We love helping home buyers and sellers find local real estate professionals and earning a reward for using our referral program. There is no better way to communicate the benefits our program than through the testimonial of satisfied customers.
Being on our fan list will also make us visible to your friends and family, which can help them find out about what we offer and bring them great savings in the event they want to buy or sell a home.
So please visit us at http://www.facebook.com/SearsRealEstate and link us via the “like” feature to your Facebook page.
Please come and visit us at booth #1807 at the National Home Show in Toronto (Feb 19-28, 2010). www.nationalhomeshow.com
Talk to our representatives about our home buyer reward program and learn how you can earn thousands by buying your next home with your local Sears Certified Agents. You can also see first hand what you can buy with the Sears Gift Cards.
Everyone who visits will get a tote bag and be entered into a draw to win a $100 Sears Gift Card.
Rent or buy? Can I afford not to own a home? Is buying a home complicated?
You have been researching and reading articles but yet you still feel like you are missing something. You are not alone, many people often feel overwhelmed or unsure of the home buying process.
On January 20 or February 3, 2010 in Toronto, join others like you at our First Time Home Buyer seminar and become informed and more confident about the entire Home Buying process.
Attend this FREE informative seminar hosted by Real Estate Lawyer and regular contributor to the Toronto Star, Bob Aaron.
Bob and an RBC Mortgage Specialist will help de-mystify and explain:
- How the HST may impact your home purchase
- Types of first time buyer rebates
- What lawyers do, when you need one
- How much to expect in closing costs and taxes
- Assembling your “Dream Team: Realtor, Lawyer, Mortgage Specialist & Home Inspector”
- Mistakes to avoid
- How banks determine your affordability
- Fixed rate vs variable rate
- And much more
Register at www.SearsRealEstate.ca/en/seminars or call 1-877-732-7751 to RSVP.
There is limited seating and there are no obligations.
Plus, we will be giving away a $50 Sears Gift Card to a lucky winner present at each of the seminars.
See you there!
Posted in First Time Home Buyers, Upcoming events
Tagged mortgage pre-approval, find a real estate agent, first time home buyer, sears real estate, buying a home, buy house rebate, home purchase rebate, first time home buyer rebate, Sears, Royal Bank
A message to the newly engaged:
Congratulations! Getting married is the biggest step in your life. And buying a home is your biggest financial step. And although we can’t help you with the marriage, we can help you with home purchase. We are excited to tell you about the Sears Certified Real Estate Services program and show you how you can earn thousands to spend at Sears Canada.
We know that you have so much to worry about with the upcoming big day. And one of the biggest decisions you may have is whether or not to go on a honeymoon or use that money for a down payment on a new home. Why not both? That’s right, if you use one of our Sears certified agents for your home purchase, you can earn back .6% of the transaction in a loaded Sears Gift Card. And yes, you can use the card with Sears Vacations. So why not get your home and your honeymoon. How’s that for a great start to marriage?
And you don’t have to be getting married to participate in our program. So tell your friends and family. Now that you’re moving out of the house, maybe it is time for your parents to get new place of their own and go on their ‘second honeymoon.’
Check out searsrealestate.ca for more info.
It is an exciting time here at Sears Certified Real Estate Services! We are celebrating and are proud to bring a premium bank into our circle of VIP partners: Welcome RBC Royal Bank! We are committed to making your real estate transaction the best it can be, and by adding RBC Royal Bank as a partner, we believe we have taken another step forward.
Basically, working with us will give you:
- The opportunity to work with one of our top producer agents from the most recognized national brokerage companies in Ontario.
- Access to the RBC Royal Bank Mortgage Specialist network – Canada’s largest mortgage provider.
- 0.6% of your home’s sale price in SEARS gift cards allowing you to access SEARS shopping options, with department and speciality stores, a comprehensive website, and a broad range of home-related services.
Of course, you don’t need to use RBC Royal Bank to be able to participate in the program. You just need to use one of our agents and we will give you a loaded Sears Gift Card worth .6% of your transaction. But with the great service and coverage of RBC Royal Bank, if you need help with your mortgage, we can match you up and you can be on your way to purchasing your next home.
Joining the program is free for you, so give us a call and perhaps we can help you get a pre-approved mortgage and introduce you to a great agent. You have nothing to lose and .6% to gain.
Posted in General updates, Home buyer rebates, Mortgages
Tagged real estate rebates, real estate rewards, mortgage pre-approval, find a real estate agent, real estate toronto, real estate ottawa, first time home buyer, sears real estate, buying a home, aeromove, airmiles, buy house rebate, buying a house rebate, home buyer rebate, home purchase rebate, first time home buyer rebate, mortgage pre-approvals, lowest mortgage rates, RBC mortgages, Sears, Royal Bank
Don’t you wish there was a match making service for real estate? Where do you start, how do you find the right agent, what about a pre-approved mortgage? At Searsrealestate.ca, you can find your match. And the rewards are more than just finding the right partner. You can also earn thousands of dollars.
It is simple. First, if you are ready to buy or sell a home and you do not have any previous commitment with another agent, simply give us a call or visit searsrealestate.ca. In order to find your match, we need to get to know you and your real estate needs. Then based on your needs, we will find you the best top-producer professional Real Estate Agent.
There are 3 simple steps to your new relationship.
1. SIGN UP with us! It is FREE? YES! There is no cost to enroll into the program. You can call us at 1-877-SEARS-51 or you can go directly to our website and fill out our friendly form. Click here to sign up now!
2. We will MATCH YOU with THE BEST AGENTS from the most recognized national brokerage companies in Canada. Our agents are widely recognized in their industry as high performers, and have been selected for their skill, knowledge and proven track record of sales. Your agent will contact you within 48 hours of signing up.
3. When you complete a transaction (buy or sell your house, or both), 0.6% of the transaction price will be given back to you in a SEARS gift card. That is $600 for every $100,000 of transaction. For example, if you purchase a $300,000 house you will get $1,800 in a Sears gift card (how cool is this!). And as a bonus, you get a coupon book with tons of great discounts at Sears!
The program is very simple. Let us match you with a top agent in your neighbourhood, buy or sell a home with that agent and we will give you a loaded Sears gift card valued at .6% of your transaction. And if you need a mortgage, we can also introduce you to an RBC Mortgage Specialist.
Find your perfect match at searsrealestate.ca.
Posted in General updates
Tagged real estate rebates, real estate rewards, mortgage pre-approval, find a real estate agent, real estate toronto, real estate ottawa, first time home buyer, sears real estate, buying a home, aeromove, airmiles, buy house rebate, buying a house rebate, home buyer rebate, home purchase rebate, first time home buyer rebate
