First-time homebuyers are being lured into the real-estate market by falling prices, lower interest rates, more selection and new government tax credit incentives. Century 21 Miller Real Estate in Oakville, Ontario has reported that sales were up in February, after a terrible January, driven by more first-time buyers entering the market. Many renters are deciding to stop paying the landlord’s mortgage so they can start paying their own mortgage. With interest rates at record lows and falling housing prices has sparked first time buyers to jump at the chance to get on the property ladder.
With an abundant surplus of houses for sale, no bidding wars and houses that sit on the market longer allows home shoppers to take their time and find a house for a price they want to pay….and a price they feel is fair value for the property.
For any buyer who is willing to take on a fixer-upper is in a great position to take advantage of the great investment opportunities this market provides them. Not only will buyers be able to pick up homes for a great price, they will be able to get the government to help pay for the necessary renovations.
Ottawa recently announced new tax credits of up to $1,350 for homebuyers to renovate their house or cottage. It also increased the amount first-time homebuyers can withdraw from their RRSPs from $20,000 to $25,000, and implemented a tax credit for first-timers of up to $750 to help cover closing costs.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Tuesday, March 31, 2009
Monday, March 30, 2009
Provincial Tax Grab Hits the Housing Industry
With the housing industry struggling to recover, the provincial government has implemented a new tax plan to set the industry back yet again.
Dalton McGuinty's government’s plan to harmonize the 8-per-cent provincial sales tax with the 5-per-cent federal goods and services tax will add an extra financial burden on those interested in venturing into the housing market. The new blended sales tax will add a tax burden to many household goods that are currently not subject to provincial sales tax, including the purchase of new homes above $400,000 and the closing costs on the sale of existing houses.
A $360,000 house will add approximately $2,037 to the purchase of a resale home. Resale real estate transactions are not subject to the extra tax on the home itself, just on the costs associated with closing the transactions. Home buyers who are considering purchasing a new construction home that costs more than $400,000 will be subject to the full 13% harmonized tax. New homes sold for under $400,000 are exempt from the extra taxation.
With Toronto residents recently having to swallow the double land transfer tax hit, the province is going after them again with their 13% harmonized tax. Home buyers in Toronto are often already paying $4,000 to Toronto and another $4,000 to the province for the land transfer tax. Now with the added tax due to the harmonization of sales tax, Toronto is becoming even more unaffordable.
The positive is knowing the plan is not set to take place until July 1, 2010. If you were thinking of buying in the near future, you could save yourself some money by completing your real estate transactions before July 1, 2010 to save you some money. If you are a Toronto resident, you would also want to consider moving out of the city to avoid paying the double land transfer tax. Buy moving out of the city and purchasing before July 1, 2010, you would be saving yourself approximately $6000.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Dalton McGuinty's government’s plan to harmonize the 8-per-cent provincial sales tax with the 5-per-cent federal goods and services tax will add an extra financial burden on those interested in venturing into the housing market. The new blended sales tax will add a tax burden to many household goods that are currently not subject to provincial sales tax, including the purchase of new homes above $400,000 and the closing costs on the sale of existing houses.
A $360,000 house will add approximately $2,037 to the purchase of a resale home. Resale real estate transactions are not subject to the extra tax on the home itself, just on the costs associated with closing the transactions. Home buyers who are considering purchasing a new construction home that costs more than $400,000 will be subject to the full 13% harmonized tax. New homes sold for under $400,000 are exempt from the extra taxation.
With Toronto residents recently having to swallow the double land transfer tax hit, the province is going after them again with their 13% harmonized tax. Home buyers in Toronto are often already paying $4,000 to Toronto and another $4,000 to the province for the land transfer tax. Now with the added tax due to the harmonization of sales tax, Toronto is becoming even more unaffordable.
The positive is knowing the plan is not set to take place until July 1, 2010. If you were thinking of buying in the near future, you could save yourself some money by completing your real estate transactions before July 1, 2010 to save you some money. If you are a Toronto resident, you would also want to consider moving out of the city to avoid paying the double land transfer tax. Buy moving out of the city and purchasing before July 1, 2010, you would be saving yourself approximately $6000.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Saturday, March 28, 2009
Interest Rate Watch – March 28, 2009
Term Rate
6 Months 5.20%
1 Year 3.25%
2 Years 3.79%
3 Years 3.90%
4 Years 3.94%
5 Years 3.99%
7 Years 4.95%
10 Years 5.25%
Prime 2.50%
Variable 3.30%
Let me help you save money! Send me your email address or give me a call and I’ll send you periodical interest rate updates, along with any other market information you may be interested in.
Buyers and sellers can find everything they need to make the most informed choices on properties in Burlington or Oakville by calling 905-220-9198 or by visiting my real estate resource centre at www.seansells.ca.
6 Months 5.20%
1 Year 3.25%
2 Years 3.79%
3 Years 3.90%
4 Years 3.94%
5 Years 3.99%
7 Years 4.95%
10 Years 5.25%
Prime 2.50%
Variable 3.30%
Let me help you save money! Send me your email address or give me a call and I’ll send you periodical interest rate updates, along with any other market information you may be interested in.
Buyers and sellers can find everything they need to make the most informed choices on properties in Burlington or Oakville by calling 905-220-9198 or by visiting my real estate resource centre at www.seansells.ca.
Friday, March 27, 2009
The Hint of Spring Sparks Renewed Interest in Real Estate!
House prices continued to slide across Canada in February compared to the same time last year, but activity was up for the first time since September.
The Canadian Real Estate Association said Monday that resale home prices fell 9.2 per cent across Canada last month to an average of $281,972. CREA, also said the number of homes that traded hands on the MLS was up 8.6 per cent. "The first monthly increase in activity since September 2008."
CREA president Calvin Lindberg said the market typically picks up in February and into the spring, but that this year buyers are being lured by historically low mortgage rates and increased affordability. "Realtors are reporting increased interest especially from first time home buyers," Lindberg said.
Ottawa also recently announced incentives for first-time home buyers including an increase in how much they can withdraw from their RRSPs from $20,000 to $25,000, as well as a tax credit of up to $750 to help cover closing costs.
"Heightened job insecurity will keep many potential home buyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets."
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
The Canadian Real Estate Association said Monday that resale home prices fell 9.2 per cent across Canada last month to an average of $281,972. CREA, also said the number of homes that traded hands on the MLS was up 8.6 per cent. "The first monthly increase in activity since September 2008."
CREA president Calvin Lindberg said the market typically picks up in February and into the spring, but that this year buyers are being lured by historically low mortgage rates and increased affordability. "Realtors are reporting increased interest especially from first time home buyers," Lindberg said.
Ottawa also recently announced incentives for first-time home buyers including an increase in how much they can withdraw from their RRSPs from $20,000 to $25,000, as well as a tax credit of up to $750 to help cover closing costs.
"Heightened job insecurity will keep many potential home buyers on the sidelines. Those who are confident about their job situation will benefit from improving affordability in a number of housing markets."
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Owning a home for what you pay in rent!
In many real estate markets, prices appear to have fallen enough to make buying cheaper than renting. When you combine falling housing prices with mortgage rates that are near record lows, renters are now finding it easier to jump into home ownership.
Historically, people rented because they couldn’t afford to buy. Prices have dropped so much in certain real estate markets that monthly mortgage payments on single-family detached homes are significantly lower than apartment rents. Housing affordability is at a record high right now and I encourage you all to take the time and research your options. It is time to call your bank to start investing in your future.
The question I am most faced with is “why wouldn’t I just wait until it hits rock bottom?” If anyone knew the answer to that question, we would all be a lot richer! You never know when the market has hit bottom until it starts to rise again. “I should then wait until the market begins its upswing!” is the next thing to be said. Well, the problem with that is you will be competing against everyone else who was waiting for the news to report on the market upswing! Not only will you get into competition when bidding on homes, interest rates will have begun to increase. If you were buying a home in Toronto 2-3 years ago, you would have most likely been in competition and ended up paying over list price for the home…if you got it at all! Today, you would most likely be the only person bidding on that same house and getting it for considerably less than list price. That is one of the many benefits to buying in a down market.
A Small Exercise!
Search my website or the MLS for a home in the area you are currently living in or an area you would like to move to, and call a mortgage broker or your bank to see what it would cost to own that home. This would not cost you a dime, and could prove to be quite enlightening! The money you are currently giving your landlord to pay off his mortgage, could possibly be the same amount of money you could be using to make your own mortgage payments!
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Historically, people rented because they couldn’t afford to buy. Prices have dropped so much in certain real estate markets that monthly mortgage payments on single-family detached homes are significantly lower than apartment rents. Housing affordability is at a record high right now and I encourage you all to take the time and research your options. It is time to call your bank to start investing in your future.
The question I am most faced with is “why wouldn’t I just wait until it hits rock bottom?” If anyone knew the answer to that question, we would all be a lot richer! You never know when the market has hit bottom until it starts to rise again. “I should then wait until the market begins its upswing!” is the next thing to be said. Well, the problem with that is you will be competing against everyone else who was waiting for the news to report on the market upswing! Not only will you get into competition when bidding on homes, interest rates will have begun to increase. If you were buying a home in Toronto 2-3 years ago, you would have most likely been in competition and ended up paying over list price for the home…if you got it at all! Today, you would most likely be the only person bidding on that same house and getting it for considerably less than list price. That is one of the many benefits to buying in a down market.
A Small Exercise!
Search my website or the MLS for a home in the area you are currently living in or an area you would like to move to, and call a mortgage broker or your bank to see what it would cost to own that home. This would not cost you a dime, and could prove to be quite enlightening! The money you are currently giving your landlord to pay off his mortgage, could possibly be the same amount of money you could be using to make your own mortgage payments!
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Get the Government to pay you....for a change!
It is almost Spring time and everyone is itching to get a kick start on their home renovations, but given the current economic situation some of us are hesitant to open up our wallets to dish out those big chunks of change!
The Government is now offering a 15% rebate on all home renovations between January 27, 2009 and February 1st, 2010. While the Government foots the bill for a portion of the renovations, homeowners are certainly more inclined to begin renovations right away.
Always keep in mind that renovations are not just about aesthetics, it is also important to remember that many renovations help you save money in the long run, and help our environment stay cleaner! Some of these products include: low-water consumption toilets, good windows, proper insulation, energy efficient furnaces, and timer-operated temperature controls.
As with all rebate programs there are certain stipulations you must concern yourself with. Don't jump into the renovation project assuming that you'll be covered for all expenses. Do your research and find out exactly what renos are covered and which ones are not. Furniture and accessories are not items that are covered under the rebate program but window replacements, any type of bathroom or kitchen renovations, as well as basement renovations are covered! If you are a "Do It Yourselfer" you can still claim for products, materials and even equipment rentals.
Don't forget to find out if a building permit is required for your renovation. You may disqualify yourself from the rebate if a permit is needed and you don’t apply for one. Protect yourself, get a permit, and get your 15% rebate! Spring is almost here, start planning out your new deck, get your building permits and don't forget apply for the Home Renovation Tax Credit! Also, be sure to check out the ecoENERGY Retrofit Grants and Incentives site to find out how you can save even more money by using eco-friendly materials in your renovation.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
The Government is now offering a 15% rebate on all home renovations between January 27, 2009 and February 1st, 2010. While the Government foots the bill for a portion of the renovations, homeowners are certainly more inclined to begin renovations right away.
Always keep in mind that renovations are not just about aesthetics, it is also important to remember that many renovations help you save money in the long run, and help our environment stay cleaner! Some of these products include: low-water consumption toilets, good windows, proper insulation, energy efficient furnaces, and timer-operated temperature controls.
As with all rebate programs there are certain stipulations you must concern yourself with. Don't jump into the renovation project assuming that you'll be covered for all expenses. Do your research and find out exactly what renos are covered and which ones are not. Furniture and accessories are not items that are covered under the rebate program but window replacements, any type of bathroom or kitchen renovations, as well as basement renovations are covered! If you are a "Do It Yourselfer" you can still claim for products, materials and even equipment rentals.
Don't forget to find out if a building permit is required for your renovation. You may disqualify yourself from the rebate if a permit is needed and you don’t apply for one. Protect yourself, get a permit, and get your 15% rebate! Spring is almost here, start planning out your new deck, get your building permits and don't forget apply for the Home Renovation Tax Credit! Also, be sure to check out the ecoENERGY Retrofit Grants and Incentives site to find out how you can save even more money by using eco-friendly materials in your renovation.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Home Renos That Pay Off
On the heels of the Government unveiling their 15% income tax credit for home renovations, I thought I would send you some information on the three areas of your home where renovations will really pay off when you want to add value to your home.
The Kitchen:
The kitchen is the best place to put your money, hands down. According to the Appraisal Institute of Canada, the average amount home-owners should spend on a kitchen renovation is about 10 to 15 per cent of the overall value of their home. If you're renovating the kitchen for personal use and not only for the purpose of investment, and if you are going to live in your house for more than five years, then you should spend 15 to 25 per cent or more. In most cases, you will recover the cost by the time you sell your home- with a 44 per cent higher return on investment than the average.
What do buyers look for?
• Space, functionality and effective, well thought-out storage
• Granite countertops create elegance, plus its resistance to scratches and easy maintenance make it ideal for everyday use
• Quality: don't skimp on appliances or labour done on renovations. Having the job done well is a value adder, doing it poorly may reduce the value of your home!
The Bathroom
After the kitchen, bathrooms are the next key space potential buyers look at. A study from Canada's leading real estate companies shows that a well-designed bathroom renovation can generate up to a 56 per cent better return on investment than the average.
What do buyers look for?
• A spa-like environment: light colours, rich textures
• Luxuries such as water jets in the tub or a steam shower stall
• A large master ensuite with a soaker tub and double sinks
Floor and Wall Finishes
Don't undervalue the paint and flooring in your home! Many buyers want a home that's move-in ready, so the more appealing the walls and floors are, the more interest your home will generate on the market. Flooring can generate a 22 per cent better return on investment than the average. If you have carpet in the family, dining and living rooms, it is recommended to change to hardwood and/or tiles. Not only will it make your home more elegant, but you will also enjoy the benefits of a healthier indoor environment. Simply repainting your walls a warm, neutral colour will give you a 29% better return than other popular renovations.
What do buyers look for?
• Walls should be smooth and painted in a neutral colour which will help enlarge the space
• Currently, hardwood or tiled flooring is the more popular choice for potential buyers
• Flooring should create a good flow between one room to the next and be able to tie in with other elements such as cabinetry, wall colours and baseboards
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
The Kitchen:
The kitchen is the best place to put your money, hands down. According to the Appraisal Institute of Canada, the average amount home-owners should spend on a kitchen renovation is about 10 to 15 per cent of the overall value of their home. If you're renovating the kitchen for personal use and not only for the purpose of investment, and if you are going to live in your house for more than five years, then you should spend 15 to 25 per cent or more. In most cases, you will recover the cost by the time you sell your home- with a 44 per cent higher return on investment than the average.
What do buyers look for?
• Space, functionality and effective, well thought-out storage
• Granite countertops create elegance, plus its resistance to scratches and easy maintenance make it ideal for everyday use
• Quality: don't skimp on appliances or labour done on renovations. Having the job done well is a value adder, doing it poorly may reduce the value of your home!
The Bathroom
After the kitchen, bathrooms are the next key space potential buyers look at. A study from Canada's leading real estate companies shows that a well-designed bathroom renovation can generate up to a 56 per cent better return on investment than the average.
What do buyers look for?
• A spa-like environment: light colours, rich textures
• Luxuries such as water jets in the tub or a steam shower stall
• A large master ensuite with a soaker tub and double sinks
Floor and Wall Finishes
Don't undervalue the paint and flooring in your home! Many buyers want a home that's move-in ready, so the more appealing the walls and floors are, the more interest your home will generate on the market. Flooring can generate a 22 per cent better return on investment than the average. If you have carpet in the family, dining and living rooms, it is recommended to change to hardwood and/or tiles. Not only will it make your home more elegant, but you will also enjoy the benefits of a healthier indoor environment. Simply repainting your walls a warm, neutral colour will give you a 29% better return than other popular renovations.
What do buyers look for?
• Walls should be smooth and painted in a neutral colour which will help enlarge the space
• Currently, hardwood or tiled flooring is the more popular choice for potential buyers
• Flooring should create a good flow between one room to the next and be able to tie in with other elements such as cabinetry, wall colours and baseboards
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Saturday, March 21, 2009
Interest Rate Watch - How Low Can They Go?
Interest Rate Watch – March 21, 2009
Term Rate
6 Months 5.00%
1 Year 3.25%
2 Years 3.79%
3 Years 3.99%
4 Years 3.94%
5 Years 3.99%
7 Years 4.95%
10 Years 5.25%
Prime 2.50%
Variable 3.30%
Let me help you save money! Send me your email address or give me a call and I’ll send you periodical interest rate updates, along with any other market information you may be interested in.
Buyers and sellers can find everything they need to make the most informed choices on properties in Burlington or Oakville by calling 905-220-9198 or by visiting my real estate resource centre at www.seansells.ca.
Term Rate
6 Months 5.00%
1 Year 3.25%
2 Years 3.79%
3 Years 3.99%
4 Years 3.94%
5 Years 3.99%
7 Years 4.95%
10 Years 5.25%
Prime 2.50%
Variable 3.30%
Let me help you save money! Send me your email address or give me a call and I’ll send you periodical interest rate updates, along with any other market information you may be interested in.
Buyers and sellers can find everything they need to make the most informed choices on properties in Burlington or Oakville by calling 905-220-9198 or by visiting my real estate resource centre at www.seansells.ca.
Wednesday, March 18, 2009
Alton Village Corner Lot Freehold Beauty!
Open house at 4886 Verdi Street in Burlington on Sunday March 22th between 2:00pm and 4:00pm.
Upscale Alton Village corner lot beauty with 1900 ft2 of living space. 3 bedroom + Den and 2.5 bathrooms. Oversized Master bedroom with ensuite including Jacuzzi tub, separate shower and large walk-in closet. Eat-in kitchen with walkout to the fenced in yard. Separate dining room, bedroom level laundry and high end upgrades throughout. Inside garage access. Close to highways, shopping and schools. Great property for young families who need the extra space!
Bring all offers! Come see it before it sells. A beautiful home for only $339,900!
Own this Burlington Beauty for payments as low as $676.90!
For your community real estate resource centre, click here.
For more information on buying or selling real estate in Burlington, or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or www.seankavanagh.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Wednesday, March 11, 2009
Halton - The Safest Place to Live in Canada
Have you been looking for a safe place to buy a house to raise your kids? Have you been looking to retire in a community you will feel most comfortable living in? Are you thinking of purchasing in an area where everyone wants to live. Halton region is your best choice.
According to Maclean’s magazine’s 2009 ranking of crime in Canada, for the second year in a row, Halton was named the safest place to live in Canada! To most residents of the region, this will not come as a surprise, but Halton has been deemed the safest place to live in the GTA and the safest regional municipality in all of Canada.
Violent crime is prevalent in Toronto and is rising in the surrounding areas of Peel and Durham, but Halton has not experienced the same levels of crime. Halton Police Chief Gary Crowell acknowledges the efforts of the police force as one of the contributing factors, but offers that it is a community collective that enables the region to remain the safest in the country. “What this Maclean’s ranking does is to validate that our officers, civilians, volunteers, local politicians, and community partners are all equally committed to keeping Halton as safe tomorrow as it is today.”
For more information on buying real estate in the Halton region, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my websites www.seansells.ca , www.seankavanagh.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Tuesday, March 10, 2009
Gage Park Beauty! - Open House
Open house at 23 East Bend Avenue South in Hamilton on Sunday March 15th between 2:00pm and 4:00pm.
Great family home located steps from Gage Park. Freshly updated 4 bedroom, 2 1/2 storey beauty.
Loads of character with original hardwood throughout first floor and new carpet on staircase. Recently upgraded kitchen w/ceramics with walkout onto large deck and fenced in yard. Separate dining room opens into living room. Updated 4 pc. bathroom, Large foyer, office/den and security system. Close to all amenities: park, shopping and schools.
Bring all offers! Come see it before it sells. It’s a steal at $167,900!
Own this Hamilton Beauty for payments as low as $334.27!
For more information on other great properties, click here.
If you are in Hamilton viewing houses, be sure to check out this other great property at www.181parkrownorth.com
For more information on buying or selling real estate in Burlington, Hamilton or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Variable vs. Fixed Rates
Bargain basement borrowing costs are prompting many Canadians to opt for fixed mortgages even though variable products continue to be a money-winning option for the foreseeable future, industry observers say.
Canadian Imperial Bank of Commerce's chief economist Benjamin Tal says variable rate mortgages should produce the greater benefit for the next two to 2.5 years, but be a wash over five years. "If you're really risk-averse, jump on those fixed-term rates because they're extremely cheap. Going variable will probably give you good performance for the next two years or so and beyond that, we might see interest rates rising."
Homeowners with variable rates, especially those with discounts reaching 90 basis points, should ignore temptations to lock in now, says Vince Gaetano, vice-president of Monstermortgage.ca. The self-professed fan of variable mortgages said they give customers control, which is important in the current economic climate. Gaetano said homeowners should use this window of low rates to pay down their mortgages as quickly as possible. "The key is if you can pay your mortgage in half by the time your variable rate doubles your interest cost is going to be the same on your balance."
He accused banks of scaring mortgage holders last fall to lock in their variable rates by suggesting rates will rise. The deteriorating economy has only caused rates to fall even further. "There are many consumers not happy with their banks right now for bad advice," he said, noting that people who opt for variable mortgages have to be comfortable with fluctuations.
If rates haven't reached a floor yet, they are probably close to it. There hasn't yet been a flurry of people opt for fixed rates. The beauty of variable rates is that consumers can convert to a fixed rate without penalty.
Mortgage expert Moshe Milevsky of York University suspects many Canadians will opt for the security of fixed mortgages considering how low rates have dropped. And in markets where real estate prices are falling, seeking a long-term rate may be more important than the type of rate. "The last thing you want to do is have to renew your mortgage in a year from now and have the bank say: 'Let's assess what that house is really worth,' " he said in an interview.
Studies conducted by Milevsky have determined that variable rates have historically produced greater savings 88 per cent of the time. "But in today's environment, you'd be hard-pressed to make a case to continue floating," he said, advocating a blend between fixed and floating rates.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Canadian Imperial Bank of Commerce's chief economist Benjamin Tal says variable rate mortgages should produce the greater benefit for the next two to 2.5 years, but be a wash over five years. "If you're really risk-averse, jump on those fixed-term rates because they're extremely cheap. Going variable will probably give you good performance for the next two years or so and beyond that, we might see interest rates rising."
Homeowners with variable rates, especially those with discounts reaching 90 basis points, should ignore temptations to lock in now, says Vince Gaetano, vice-president of Monstermortgage.ca. The self-professed fan of variable mortgages said they give customers control, which is important in the current economic climate. Gaetano said homeowners should use this window of low rates to pay down their mortgages as quickly as possible. "The key is if you can pay your mortgage in half by the time your variable rate doubles your interest cost is going to be the same on your balance."
He accused banks of scaring mortgage holders last fall to lock in their variable rates by suggesting rates will rise. The deteriorating economy has only caused rates to fall even further. "There are many consumers not happy with their banks right now for bad advice," he said, noting that people who opt for variable mortgages have to be comfortable with fluctuations.
If rates haven't reached a floor yet, they are probably close to it. There hasn't yet been a flurry of people opt for fixed rates. The beauty of variable rates is that consumers can convert to a fixed rate without penalty.
Mortgage expert Moshe Milevsky of York University suspects many Canadians will opt for the security of fixed mortgages considering how low rates have dropped. And in markets where real estate prices are falling, seeking a long-term rate may be more important than the type of rate. "The last thing you want to do is have to renew your mortgage in a year from now and have the bank say: 'Let's assess what that house is really worth,' " he said in an interview.
Studies conducted by Milevsky have determined that variable rates have historically produced greater savings 88 per cent of the time. "But in today's environment, you'd be hard-pressed to make a case to continue floating," he said, advocating a blend between fixed and floating rates.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Why it’s time to buy a house!
When you pair falling housing prices with record low interest rates, both variable and fixed, many financial experts have deemed a home purchase in this market “a no-brainer.”
Even though the financial experts have labelled a home purchase a “no brainer”, consumers’ fear is keeping them from taking advantage of the great opportunities out on the market today. As prices for most consumer goods, cars and homes decline - in some cases plunge - and the cost of borrowing falls, Canadians are still hesitant to buy.
The Bank of Canada did its part this week to lure consumers and businesses out of their fox hole, dropping the overnight rate down to an unheard of half per cent - virtually zero. Canadian banks followed suit by lowering their prime rate to 2.5 per cent. Many mortgage brokers are now offering a low 5 year fixed for 4.19%. For more information on current Interest rates click here.
Even with rates being as low as they are, the days of easy money are over. Chartered banks are being more selective who they lend to. Also, variable rate mortgages, formerly could be had below the banks' prime rate. The prime rates have fallen, along with the Bank of Canada's moves, but now banks' variable mortgage rates are well above prime.
Job security is one of the great factors in consumers not spending and banks not lending. "The issue is confidence," economist Benjamin Tal said. "People talk about the unemployment rate going to eight and nine per cent, but the focus should be on the 91 per cent of people who are employed and are concerned about their jobs." Tal and most economists believe that Canadians will start spending again because they no longer can put off purchases. But he doesn't believe they will spend with the reckless abandon of the recent past. "After the crisis is over, consumer spending will be stronger but not like it used to be because it was artificially strong before, using borrowed money," Tal said.
That time is coming soon, at least in the housing market. Home purchasers will no longer be willing to get into bidding wars on properties and spend hundreds of thousands of dollars over list prices, as was the case in many areas in Toronto and throughout the GTA.
However, if you have job security and a decent credit rating, you should not have many worries about getting approved for a mortgage and with interest rates low and falling housing prices, now is a great time to buy.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Even though the financial experts have labelled a home purchase a “no brainer”, consumers’ fear is keeping them from taking advantage of the great opportunities out on the market today. As prices for most consumer goods, cars and homes decline - in some cases plunge - and the cost of borrowing falls, Canadians are still hesitant to buy.
The Bank of Canada did its part this week to lure consumers and businesses out of their fox hole, dropping the overnight rate down to an unheard of half per cent - virtually zero. Canadian banks followed suit by lowering their prime rate to 2.5 per cent. Many mortgage brokers are now offering a low 5 year fixed for 4.19%. For more information on current Interest rates click here.
Even with rates being as low as they are, the days of easy money are over. Chartered banks are being more selective who they lend to. Also, variable rate mortgages, formerly could be had below the banks' prime rate. The prime rates have fallen, along with the Bank of Canada's moves, but now banks' variable mortgage rates are well above prime.
Job security is one of the great factors in consumers not spending and banks not lending. "The issue is confidence," economist Benjamin Tal said. "People talk about the unemployment rate going to eight and nine per cent, but the focus should be on the 91 per cent of people who are employed and are concerned about their jobs." Tal and most economists believe that Canadians will start spending again because they no longer can put off purchases. But he doesn't believe they will spend with the reckless abandon of the recent past. "After the crisis is over, consumer spending will be stronger but not like it used to be because it was artificially strong before, using borrowed money," Tal said.
That time is coming soon, at least in the housing market. Home purchasers will no longer be willing to get into bidding wars on properties and spend hundreds of thousands of dollars over list prices, as was the case in many areas in Toronto and throughout the GTA.
However, if you have job security and a decent credit rating, you should not have many worries about getting approved for a mortgage and with interest rates low and falling housing prices, now is a great time to buy.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Saturday, March 7, 2009
Owners and Buyers Get a Boost from Canada's New Budget
Canada's housing industry is thrilled with the government's new budget, which provides up to $7.8 billion in tax relief and funding for everything from home renovations to housing for low-income seniors. From First Nations housing to first-time buyers' incentives, there's something for almost everyone.
The Conservative government came through on its election promise to help first-time buyers with closing costs such as legal fees and land transfer taxes. A tax credit worth up to $750 will be made available for first-time buyers, as well as existing homeowners who buy a more accessible or functional home and qualify for a Disability Tax Credit.
The government has also increased the amount that first-time buyers can withdraw from their Registered Retirement Savings Plan to buy a home, from $20,000 to $25,000. The popular Home Buyers' Plan was introduced in 1992 but the amount that could be withdrawn tax-free had not changed since then. The Canadian Real Estate Association (CREA) says in a news release that the plan "has not had the same impact and relevance it did 16 years ago, when the original $20,000 limit represented 13.3 per cent of the average home price, versus about 6.5 per cent in 2008."
To stimulate the residential construction industry, there's a new 15 per cent income tax credit for home renovation work performed between January 27, 2008 and February 1, 2010. The credit applies to expenditures exceeding $1,000 but not more than $10,000, and provides up to $1,350 in tax savings.
This credit is "family based" – a family is considered to be an individual and their spouse or common-law partner, who can share the credit.
The budget provides this example of how the credit could work: "Sally and Ed … decide to replace their windows and improve the insulation in their home in 2009, incurring $10,000 in expenditures. After taking account of the $1,000 minimum threshold, a 15 per cent credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350." The government expects this program will cost $500 million in 2008-09 and $2.5 billion in 2009-10.
The budget also builds on the existing ecoENERGY Retrofit program, which provides property owners grants of up to $5,000 to offset the cost of making energy-efficiency improvements, such as upgrading insulation or installing a new furnace. Homeowners will be able to take advantage of both this program and the new Home Renovation Tax Credit for eligible work.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
The Conservative government came through on its election promise to help first-time buyers with closing costs such as legal fees and land transfer taxes. A tax credit worth up to $750 will be made available for first-time buyers, as well as existing homeowners who buy a more accessible or functional home and qualify for a Disability Tax Credit.
The government has also increased the amount that first-time buyers can withdraw from their Registered Retirement Savings Plan to buy a home, from $20,000 to $25,000. The popular Home Buyers' Plan was introduced in 1992 but the amount that could be withdrawn tax-free had not changed since then. The Canadian Real Estate Association (CREA) says in a news release that the plan "has not had the same impact and relevance it did 16 years ago, when the original $20,000 limit represented 13.3 per cent of the average home price, versus about 6.5 per cent in 2008."
To stimulate the residential construction industry, there's a new 15 per cent income tax credit for home renovation work performed between January 27, 2008 and February 1, 2010. The credit applies to expenditures exceeding $1,000 but not more than $10,000, and provides up to $1,350 in tax savings.
This credit is "family based" – a family is considered to be an individual and their spouse or common-law partner, who can share the credit.
The budget provides this example of how the credit could work: "Sally and Ed … decide to replace their windows and improve the insulation in their home in 2009, incurring $10,000 in expenditures. After taking account of the $1,000 minimum threshold, a 15 per cent credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350." The government expects this program will cost $500 million in 2008-09 and $2.5 billion in 2009-10.
The budget also builds on the existing ecoENERGY Retrofit program, which provides property owners grants of up to $5,000 to offset the cost of making energy-efficiency improvements, such as upgrading insulation or installing a new furnace. Homeowners will be able to take advantage of both this program and the new Home Renovation Tax Credit for eligible work.
For more information on buying or selling real estate in Burlington or Oakville, Ontario, or if you have questions about current market trends, mortgages or interest rate information, please visit me again on my website www.seansells.ca or call me at 905-220-9198 and I'd be glad to answer any questions to accommodate all of your real estate needs.
Tuesday, March 3, 2009
Just Listed in Burlington
4886 Verdi Street, Burlington, L7M 0H4
Upscale Alton Village corner lot beauty with 1900 ft2 of living space. 3 bedroom + Den and 2.5 bathrooms. Oversized Master bedroom with ensuite including Jacuzzi tub, separate shower and large walk-in closet. Eat-in kitchen with walkout to the fenced in yard. Separate dining room, bedroom level laundry and high end upgrades throughout. Inside garage access. Close to highways, shopping and schools. Great property for young families who need the extra space!
For a 24/7 Open House experience of this stunning corner lot beauty, Click Here!
Own this great home for payments of only $676.69!!!!!
For more details call Sean @ 905-220-9198 or visit www.seansells.ca or www.seankavanagh.ca
Call today for your own private viewing!
Just Listed in Hamilton
23 East Bend Avenue South, Hamilton, L8M 3E4
Great family home located steps from Gage Park. Freshly updated 4 bedroom, 2 1/2 storey beauty. Loads of character with original hardwood throughout first floor and new carpet on staircase. Recently upgraded kitchen w/ceramics with walkout onto large deck and fenced in yard. Separate dining room opens into living room. Updated 4 pc. bathroom, Large foyer, office/den and security system. Close to all amenities: park, shopping and schools. Priced to sell!
For a 24/7 Open House experience, click here!
Own this great home for payments as low as $334.27!!!!!!
For more details call Sean @ 905-220-9198 or visit www.seansells.ca or www.seankavanagh.ca
Call today for your own private viewing!
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