Another Strong Sales in Real Estate in Month of August

We have had yet another good month in August. Below is the Market Watch from Toronto Real Estate Board.

September 7, 2011 -- Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings.

"Home sales in the GTA have stood up well despite a less certain economic outlook," said Toronto Real Estate Board President Richard Silver. "Home sales will be bolstered by low mortgage rates moving forward. The Bank of Canada is expected to be on the sidelines until the second half of 2012 or even into 2013. However, home ownership affordability in the City of Toronto could be further improved with the removal of the City's land transfer tax. This tax currently represents a substantial upfront cost for home buyers."

With market conditions remaining tight in the GTA, the average selling price continued to grow strongly in August – up by more than 10 per cent year-over-year to $451,663.

"We remain on pace for the second best year on record for sales. Approximately 90,000 transactions are expected by the end of December," said TREB's Senior Manager of Market Analysis Jason Mercer. "Major home ownership costs, including the average monthly mortgage payment, remain affordable despite the strong price growth experienced so far this year."

If you wish to get a detailed report you could contact me and I would be happy to email it to you.

Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

The Madison Condo on Yonge and Eglinton

The Yonge and Eglinton Condo seem to be HOT this year! There are several new projects up this year and they are selling out. One of them is the Madison Avneue Condos, with their Phase 1 (33 storeys) sold out in May they now have their Phase 2 (30 storeys) coming up for sale on September 17th, 2011.

The Madison Ave Condos will comprise of two glass towers with roughly 644 condo units. The first tower (West Tower) will stand at 33 storeys; the second (East Tower) will be 30 storeys. The first two floors will be allocated to approximately 60,000 square feet of retail space.

Builder: Madison Condos is developed by award-winning Madison Homes and designed by Kirkor Architects, is a two building complex located at the heart of midtown Toronto, Yonge and Eglinton. The towers reinforce this duplicity by evoking the ying-yang effect with the opposite curve facing Eglinton Avenue.

Location: 97 Eglinton Ave East – South East Corner of Eglinton and Dunfield. Currently the former York Theatre/ Parking Lot. The Madison Ave condominiums will be just steps to the Yonge and Eglinton subway and the proposed extension of the Eglinton cross-town LRT.

Features:
- Comprised of approximately 644 suites in two-high rise towers that sit on an 8 storey podium, with more than 28,000 square feet of indoor and outdoor amenity space, along with more than 60,000 square feet of prime storefront retail.
- Most suites are designed with terraces or balconies with glass and rail treatment as per plan. 9 feet ceilings are standard throughout and will create a sense of airiness and space inside the suites, most will boast terraces or balconies, offering residents a sweeping panorama of the city.
- Designed to be modern and sleek, yet functional. The kitchens will feature designer series kitchen cabinetry, granite countertop, stainless steel undermount sinks, upgraded hardware, glazed ceramic backsplashes, island or breakfast bar and stainless steel appliances.
- The bathrooms boast custom designed cabinets, Caesar Stone countertop, contemporary frameless glass showers, mosaic shower floor tile and waterproof shower ceiling fixture.

There are lots of other great features that Madison Condos have to offer.

Condo suite prices are starting from mid 300’s and range from 1 bedrooms, 1 bedroom and dens, 2 bedroom, 2 bedrooms + den, 3 bedroom layouts. Sizes will vary from as low as 500 + sq ft to over 1000 sq ft.

The VIP Event is scheduled for September 17th, 2011 at 11a.m. To register contact me now to get your spot secured and to receive pre-construction discounted prices, floor plans and incentives that are only offered during the broker special event.

Warm Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

Happy Labour Day Weekend!!

Hope you all had a wonderful summer this year. This is the last long weekend of the summer.
If you have no plans for the weekend, Toronto has quite a few activities lined up.

Labour Day is the final day of the CNE. Later in the day is a great time to go as there are few people around. The Canadian International Show will take place on September 3rd, 4th and 5th, 2011.

If you are looking for a multicultural event there is the third annual Brazilian Day Canada Festival and concert at Yonge-Dundas Square and the Hispanic Fiesta, September 2nd. -5th, Mel Lastman Square.

And if you are looking to do an educational event the Royal Ontario Museum is going to have Water: The Exhibition until September 5th, 2011.

I will be there at the CNE feasting on some Deep Fried Mars and Tiny Tom Donuts and enjoying the air show. Have a wonderful Long Weekend!!!

Warm Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

Using Your RRSPs For A Down Payment On Your New Home

I have come across a lot of people including my clients who are still unclear about the Registered Retirement Savings Plan (RRSP) for the purpose of buying a home. For those of you who are unaware the Revenue Canada calls this program the Home Buyer’s Plan. Not only is this popular with first-time homebuyers, but in my opinion, it is significantly underused.

RRSPs represent one of the only forms of forced savings – so why not use this method to come up with your new home down payment?

What is the First Time Home Buyer’s Plan?
The First-time Home Buyer's Plan (HBP) is a Federal Government initiative providing Canadian citizens the opportunity to withdraw up to $25,000 from personal RRSPs for buying or building a home in Canada. To qualify, applicants must not have directly, or indirectly, owned a residence within the past five years.

Under the HBP, qualifying withdrawals will not be included in annual income, and RRSP issuers will not withhold income tax from these withdrawn amounts. If you are jointly buying or building a home together with your spouse or other qualifying individual, each of you can withdraw up to $25,000. This means that three people buying together can withdraw up to $75,000 (3 X $25,000) collectively.

Are the Withdrawals Taxed?
Withdrawals that meet all of the Revenue Canada HBP conditions are not included in your income and therefore not taxed in the year they are withdrawn. The money that you withdraw has to have been in RRSPs for a minimum of 90 days before it can be withdrawn without tax liability. Through the program, you have the ability to withdraw the amount all at once or through a series of withdrawals not to exceed $25,000.

To withdraw these funds from your RRSPs, you must first have entered into a written agreement to buy or to build. You will also need to confirm that you will occupy the subject property as your personal residence. (Once you take occupancy there is no minimum period of time you are required to live there.)

When do you repay the amount?
Your commitment to the HBP is to repay the amount withdrawn within a 15 year time period. In each year, you will need to make the minimum contributions to your RRSPs equal to 1/15 of the withdrawn funds until the total amount is repaid. You will receive a HBP Statement of Accounts on your annual Notice of Assessment showing you the total HBP withdrawal, the amount you have repaid to date, your HBP balance, and the amount you should repay the following year. Your repayment starts the second year following your withdrawal, and you may repay any amount in excess of the minimum to reduce payments in later years. If you do not repay this amount, then that figure is added to your income for that year. There is no tax liability personally incurred when you make this payment back to your RRSP (at least not from the HBP).

After you move to your new home and start making payments back to your RRSPs, you have to designate the portion that you would like to go towards your HBP payment. Since your earnings will most likely increase as the years go by, it is important to try and pay back the amount you borrowed as quickly as possible. Not only does it give you the potential to get a higher tax deduction for your RRSP contribution but also allows your RRSP dollars to have more years of tax sheltered growth while in your RRSP.

Please keep in mind this is only an overview and do not substitute it for comprehensive tax and financial advice. If you do need further information you could consult a financial professional or I could refer you to one. A more in-depth review of the program can be found on Revenue Canada’s website – www.crc-arc.gc.ca or by calling 1-800-959-2221.

It has been a busy year in the housing market; make sure you make the right decision. Until next time.

Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

July Sales and Averge Price Up Compared to 2010

The New Market Watch by the Toronto Real Estate Board for the month of July,2011 is out. The good news if you are thinking of selling is that there has been no signs of a slow down this summer, on the contrary, the number of transactions reported by Realtors and average housing prices went up.

Here is the Report for the Month of July:

Toronto, August 4, 2011 — Greater Toronto REALTORS® reported 7,922 transactions through the TorontoMLS® system in July 2011, representing a 23 per cent increase over July 2010. Total sales through the first seven months of this year amounted to 55,863 – down by 1.3 per cent compared to the same period in 2010. After adjusting for seasonal fluctuations, the July figure continued to point to an annual sales result close to 90,000 – in line with results from the previous six months.

"Strong home sales continued in July, with a substantial rebound over last summer’s slow-down brought about by higher mortgage rates, new lending guidelines and misconceptions about the HST. The greatest rebound was seen in the condominium apartment segment in the City of Toronto," said Toronto Real Estate Board President Richard Silver. "If the current pace of sales holds up, we could see the second best year on record under the current TREB market area." The average selling price in July was $459,122 – up by almost ten per cent compared to the July 2010 average of $418,675. “Tight market conditions have boosted the annual rate of price growth this year. However, the listings situation is starting to improve. A better supplied market later this year and into 2012 would lead to a more sustainable rate of price growth,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

If you wish to get a detailed report you could contact me and I would be happy to email it to you.

Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

TorontoMLS® Sales and Average Price Up in June

Hello All,

Below is the Market Report by the Toronto Real Estate Board for June 2011. The sales of home for the month of June went up by 21% and increase in prices by 9.5% as compared to June 2010.

July 6, 2011 -- Greater Toronto REALTORS® reported 10,230 home sales through the TorontoMLS® system in June 2011 – up 21 per cent compared to June 2010. This number represented the third best June result on record behind 2007 and 2009. The number of transactions during the first six months of 2011 amounted to 48,189 – down by 4.5 per cent compared to the first half of 2010.

"The strong June result capped off an interesting first half of 2011," said Toronto Real Estate Board President Richard Silver. "The pace of sales was a bit sluggish at the beginning of the year, but rebounded in May and June. Because of the positive affordability picture, home buyers remained confident in their ability to purchase and pay for a home over the long term."

The average price for June transactions was $476,371 – a 9.5 per cent increase over June 2010. Through the first six months of the year, the average selling price was $467,169 – almost an eight per cent increase compared to the same period in 2010.

"While sales have been strong, we would be on track for a record number of transactions in 2011 if not for the decline in listings so far this year," said Jason Mercer, the Toronto Real Estate Board's Senior Manager of Market Analysis. "Tight supply meant more competition between home buyers and an accelerating annual rate of price growth in the second quarter."

"Home owners will likely react to the stronger price growth by listing their homes in greater numbers. A better supplied market would result in more moderate price increases," continued Mercer.




Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link

What are you paying for in a Condo Common Element Fees ...

Recently, I sold a Detached Condo Home in Mississauga, and the common question I got was “why am I suppose to pay condo fees”, “what do the common element fees cover,” “where does the money go” “will the fee increase every year” etc. Buyers usually are reluctant to pay the “extra”condo fee. Most of the buyers have misconceptions and misunderstand the concept of paying condo common element fees.

What are Condo Common Element Fees?

Condo fees are each owner’s share of the common expenses of a condominium corporation, it is the costs of maintaining your condominium.

The condominium board prepares a budget for each fiscal year of the corporation. The budget sets out the amount of the estimated common expenses. Each owner’s monthly contribution is determined by multiplying that amount by the owner’s common expense percentage as set out in a schedule to the declaration and dividing by twelve.

Why pay condo common element fees?

The condo common element fees cover a variety of things and without being conclusive, they may include staff (security and concierge), guest suites, recreational facilities such as pools, tennis court, party rooms and saunas, water, hydro, gas, building insurance, snow removal, landscaping,cleaning, maintenance, taxes, property management fees, reserve fund contributions, reserve fund studies, accounting and legal.

Every building is slightly different and the fees will vary depending on age, size and complexity. In order to determine what the fees include the buyer’s agent should the agreement of purchase and sale conditional on status certificate and review the budget and the most recent statements of the condo.

What is Reserve Fund?

A portion of the common element fees you pay is put into a reserve fund for special assessments of the property as is needed, and these monies cover major repairs and upgrades to the building, including items such as roof replacements, re-painting an re-carpeting the hallways, new windows and doors, and re-paving the parking garage. When there is not enough money in the reserve fund to cover these special assessments, the costs are distributed proportionately among the unit owners and are levied for a period of time deemed appropriate by the board or pursuant to a reserve fund study.

As an example, let’s take a $150,000 condo with a $140 monthly condo fee for a first time buyer.

While owning a house you might average a water/sewer bill of $25 per month. With a condo you save $20 per month on homeowners insurance costs compared to a house. That’s $45 saved per month. When you think about the actual costs of maintaining the exterior of a home, landscaping, paving, fertilizer, purchasing a lawnmower, hedge trimmer,etc… Most homeowners would spend more than $95 a month on average. This isn’t even taking into account eventual big ticket items like roof ($5000) and siding($5000) replacement. There is also quite a value to living a low maintenance, care-free lifestyle.

Will the Condo fee increase every year?

It’s best to review the status certificate before purchasing the unit. The status certificate will let you know how much is in the reserve fund and give you an idea of whether there is enough money to cover these costs as they arise. The age of the condo may also aid in assessing whether major repairs will be necessary in the future. In addition, this is an opportunity to discover if a “reserve fund study” was , is or shortly will be conducted, and if known, what increases (if any) to be expected.

Common element fees generally increase yearly at the rate of inflation, however, this is not a set amount and fees could increase by more or less than the rate of inflation depending on what the board deems necessary to operate the building. Fees are set to pay for the proper maintenance of the building and to put money into the reserve fund.

In conclusion, condos are for living pleasure and condo fees protect your investment. The common element fees are an integral part of the condo world and in the same way you need to pay to maintain a freehold home, you pay someone else to take care of your condominium home. Remember, every condominium is different and rates may be set to rise so be careful, take your time and investigate so there are no surprises.

I hope most of your doubts are cleared, if you do have any other questions please feel free to contact me at 905-828-3434 and I will be happy to answer. My goal is to help you achieve in buying and selling residential homes and investments and provide you guidance throughout.

Regards,
Zeenia Kola
Sales Representative with Re/Max Realty Specialists Inc., Brokerage
Email: zeenia@zeeniakola.com
Ph: 905-828-3434
Add: 2691 Credit Valley Rd, #101, Mississauga, L5M 7A1
Website: http://www.zeeniakola.com/
Facebook Link