Real Estate in GTA

Low home prices lure first-time buyers

2009-05-27T15:55:00.000-07:00

Low home prices lure first-time buyers
May 27, 2009Tony Wong Toronto Star

Canadian first-time home buyers are a cautious lot, but they will strike if the price is right.
While the economy remains a huge concern, lower prices and interest rates are spurring them to buy in the spring market, according to a report released yesterday by Royal LePage Real Estate Services.

According to a poll by Pollara Research, done for Royal LePage, 86 per cent of Canadians say lower interest rates make them more likely to buy a home. Eighty-one per cent say lower prices are another motivating factor.

But the economy remains a stumbling block, with 76 per cent citing job security and 64 per cent saying a stable economy are important factors in their buying decisions.
"The true impact of job loss is understated because, beyond the 8 per cent unemployment rate, you have a section of the population who are concerned about their jobs, and that is feeding into their choice to buy a home," Royal LePage CEO Phil Soper said in an interview.
Still, some buyers have returned to the market this spring. A first-time homebuyer's tax credit and a home-renovation tax credit for 2009 have been cited by potential purchasers as influencing factors.

First-time buyers are key to the market because they allow move-up buyers to sell their homes while continuing up the housing chain to more expensive properties.
"The proof in the pudding will be whether we see if demand is sustainable to summer and early fall," Soper said.

So far, Canadian developers have avoided a disastrous spring, with new-home sales down by 26 per cent in April compared with last year, representing the slowest deceleration in six months. Sales totalled 1,880 in April, compared with 2,541 the year before, according to figures released yesterday by the Building, Industry and Land Development association.
Still, year-to-date sales are down by 52 per cent compared with 2008.
Toronto existing-home prices have also been surprisingly resilient, down by less than 1 per cent from the same period last May.

By contrast, in the United States, the Case-Shiller housing price index reported yesterday that homes have now lost an incredible 32.2 per cent in value since the correction.
In the Toronto market, condominiums remain the preferred choice of many first-time buyers based on affordability.

Some buyers are gravitating to condos built within the past five years, "questioning the viability of new build projects within the current economic climate," LePage said, as some buyers worry that some projects will not be started due to poor sales.
The typical first-time buyer is 25 to 30 and willing to spend up to $400,000 on a home for couples. Singles, mostly women, are purchasing within the $250,000 to $300,000 range according to the real estate company.

Developers say new projects are still selling, but there is uncertainty in the market over a proposed harmonized sales tax in Ontario, which would meld the GST and PST and push up the prices of homes selling for more than $400,000. Builders say the new tax could bump up costs by as much as 6 per cent on sales in a given project, making some developments unfeasible.
"We have a situation where I have no idea what to tell my customers if they are going to get hit with the tax," said Frank Giannone, president of the Ontario Home Builders' Association in a meeting this week with the Star's editorial board.
Giannone said he is about to launch a development in Don Mills, but uncertainty over the tax is causing buyers to hesitate.

The builders' group wants the province to give an exemption to buyers signing sales deals before next July, when the tax is to be implemented. Under the proposed tax, homes under $400,000 are exempt from the tax, while homes between $400,000 and $500,000 will pay a portion. Homes over $500,000 bear the full brunt.

Asher Ullah
Broker
www.homesforgta.com

Warming up to Sunshine - residential solar hot-water systems

2009-05-11T08:29:00.000-07:00

Enbridge Gas Distribution Inc. and Bullfrog Power Inc. plan to install 1,200 residential solar hot-water systems in Ontario over the next two years.

Courtesy: Tyler Hamilton Energy Reporter, TORONTO STAR

Solar thermal technology goes mainstream as utility tests sun-powered hot water systems in 1,200 homes

Natural gas utility Enbridge Gas Distribution Inc. and green electricity retailer Bullfrog Power Inc. have teamed up on a pilot project that aims to install 1,200 residential solar hot-water systems in Ontario within the next two years.
The two companies will launch the project in Ottawa today in partnership with Natural Resources Canada and solar-thermal equipment maker EnerWorks Inc. of Dorchester, Ont.

It's a sign of the times. Once considered a niche technology embraced by the most eco-conscious consumers, solar thermal hot-water systems are now seen as an economical way to reduce the use of natural gas and electricity by extracting clean energy from the sun.

The systems, which range in price from $6,000 to $9,000 installed, don't produce electricity like their photovoltaic cousins. Instead, they use sunlight to preheat cold water before it enters the hot-water tank in your basement. The more heated water you get from the sun, the less natural gas or electricity you consume.

The fact that a natural gas giant such as Enbridge is taking the lead on the project shows the technology is gaining mainstream acceptance, observers say.
``The entry of Enbridge is a wonderful development,'' said Mary Pickering, acting executive director of the Toronto Atmospheric Fund, which is overseeing its own solar-thermal project involving more than 100 homes in the city's Riverdale neighbourhood.

``I think people feel comfortable working with their utilities. They're credible, they're there for the long term and we already pay our money to them,'' Pickering said.Enbridge vice-president Arunas Pleckaitis said if the project is successful the company may look at ways of expanding it into a mainstream product offering.

``You'd have to be from another planet to not realize things are changing,'' he said. ``We clearly realize the role of the utility is going to change. The question is, how quickly and what technologies, and what direction will we take?

``It could be geothermal. It could be micro-generators in people's homes. It could be heat pumps. There are all sorts of different technologies we're looking at.''

Enbridge, which has 1.9 million customers in Ontario, will manage the selection of certified installers, operate a call centre to handle inquiries and help customers arrange financing through TD Bank.

Installers will help homeowners determine if solar thermal is right for them based on their hot-water use and the suitability of their roof. Installers will also be responsible for getting all necessary municipal permits.

Bullfrog Power will help Enbridge market the program to existing customers. ``Frankly, our customers want us to do more of this,'' Bullfrog president Tom Heintzman said, calling the project an ``experiment'' from which the company hopes to learn. ``Changing people's behaviour is critical to increasing the penetration of solar thermal, and that's something we have some expertise in.''
The companies are taking advantage of generous solar incentives offered by the federal and provincial governments. Ottawa's EcoEnergy program recently increased the rebate on solar thermal hot-water systems to $1,250 from $500 contingent on an energy audit. Homeowners can also get 15 per cent back on the purchase through the federal Home Renovation Tax Credit.

Ontario doesn't charge provincial sales tax on the systems and offers a $500 rebate, which could rise to $1,250 if Queen's Park, as it has indicated, matches the federal rebate. It means homeowners who get a $7,500 system could get back up to $2,875, and potentially $3,625 if Ontario ups its rebate.

Phil Whiting, president of EnerWorks, said his was the first solar-thermal company to get its product certified by the Canadian Standards Association. The systems were designed to handle cold Canadian winters and blistering hots summers, he said.
``I can't imagine Enbridge and Bullfrog wanting to lend their names to any product that's not absolutely first-rate,'' he said, adding that EnerWorks is committed to building its business in the province. ``I'm a big believer we can become a world player in solar thermal out of Ontario.''

Asher Ullah
www.homesforgta.com

Cashing in: Canada’s CEO salary surge

2009-05-05T13:50:00.001-07:00

Cashing in: Canada’s CEO salary surge

Posted using ShareThis

Toronto Real Estate Market Bounced back - March update

2009-04-06T13:48:00.001-07:00

TORONTO, April 6, 2009 -

In March 2009, Greater Toronto REALTORS® reported 6,171 sales
– down seven per cent from March 2008, representing the smallest year-over-year decline in the last five months. The average price for March transactions was $362,052 – down less than five per cent from the same month last year.

“The Greater Toronto housing market has stood up very well given the
challenging economic times the world has experienced in recent months,” commented TREB President Maureen O’Neill.

“In fact, over the past two months, the situation in the housing market has improved.”

The seasonally-adjusted annual rate of sales increased to 65,600 in March – up 36 per cent from the ten-year low reached in January.1
“Sales in March increased at a rate over and above what would be expected from the normal spring-time bump,” said Jason Mercer TREB’s Senior Manager of Market Analysis.

“A greater number of households have taken advantage of increased affordability in the housing marketplace.”
Seasonally adjusting TREB MLS® data removes recurring seasonal trends observed each year. For example, MLS® sales are highest in late spring each year and lowest in the winter months. Removing the recurring
seasonality, allows for the analysis of a meaningful trend reflecting actual changes in market conditions. By multiplying the monthly seasonally-adjusted figure by 12, creating an annual rate, we can compare how the current
month relates to historical annual figures.

SUMMARY OF MARCH MLS® SALES AND AVERAGE PRICE 2008 ‐ 2009
March
2009
Sales Average Price Sales Average Price
City of Toronto ("416")

2,398 units sold and avg price is $387,793

Rest of GTA ("905")
Units sold 3,773 and avg price $345,689

Source: Toronto Real Estate Board

For a complete copy of the Market Watch Report visit www.TorontoRealEstateBoard.com
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 28,000 Members in the Greater Toronto Area, the Toronto
Real Estate Board is Canada’s largest real estate board. Greater Toronto Area
open house listings are now available on http://www.torontorealestateboard.com/.

ASHER ULLAH
http://www.homesforgta.com/

Harmonized Tax - Another burden for homeowners

2009-03-28T10:50:00.000-07:00

Carolyn Ireland, Gloobe and mail, March 26, 2009

Lots of people have been stopping me in the hallways of the Globe to talk about the Ontario government budget and the impact that the new harmonized sales tax will have on buying and selling houses.

The budget confirms the plan by Dalton McGuinty's government to harmonize the 8-per-cent provincial sales tax with the 5-per-cent federal goods and services tax.

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.
Just yesterday my colleague Clare Jordan was thinking about putting her smallish house on the market and looking around for something bigger now that she's found out how much ground two-year-old boys can cover.
Today she's not so sure.

In any already struggling market, will her house be that much harder to sell with more taxes piled on? And will anything she buys become less affordable?
Because Jordan would be selling an existing house, the tax hit would apply only to the closing costs, including the realtor fees that she and the purchaser pay. Then there are the legal services, title insurance and home inspections that the purchaser typically forks out for. These costs are not currently subject to provincial sales taxes.

Taking the example of a $360,000 house, the Toronto Real Estate Board estimates that will add $2,037 to the purchase.
When she buys another property, she would pay the tax on the closing costs as well.

The equation changes dramatically, however, if she purchases a new house that costs more than $400,000 because in that case the purchase price will be subject to the harmonized tax.

Not surprisingly, TREB is unhappy with the change.
“Obviously it's not good,” was the first reaction of TREB spokesman Von Palmer.
“We're shocked because we're still reeling from the land transfer tax,” he says.
Von Palmer points out that home buyers in Toronto are often already paying $4,000 to Toronto and another $4,000 to the province for the land transfer tax.

The harmonized tax does not affect new houses under $400,000: Under that ceiling, the status quo remains, Von Palmer says.
While the issue affects real estate across the province, Toronto's housing market will feel it more because house prices are higher, on average, he points out.
He says realtors were finally seeing some signs of hope in the city's property trade after months of sliding sales and price declines.
In the budget, newly built homes that cost more than $400,000 will be hit with higher taxes - ranging from $12,000 to $46,676 in Toronto, according to one study - while the federal government has agreed to drop the GST for those under that threshold.

There's a sliding scale upwards from there, with houses above $500,000 subject to the full 13 per cent combined tax.
TREB is working with the Ontario Real Estate Association to voice the displeasure of their constituency - real estate agents - to the province.

What about homeowners and prospective buyers? Does anyone care to weigh in?

Asher Ullah
www.homesforgta.com

Canada ranks third best country for business

2009-03-22T19:24:00.000-07:00

Jack Gage, Forbes

Published: Friday, March 20, 2009, Macleans

The economic downturn that's swept the globe has crushed financial markets, exploded unemployment and shaken confidence in the banking system.
The disaster isn't shared equally, though.

Some countries are in a much better position than others to rebound from the current malaise by attracting entrepreneurs, investors and workers.

Who are they? Our fourth annual Best Countries for Business ranking looks at business conditions in 127 economies. Topping the list for 2009: Denmark, for a second straight year, takes the No. 1 spot. The U.S. is up two spots to No. 2, Canada is up four spots to No. 3, Singapore is up four to No. 4 and New Zealand is up seven to No. 5.

Big movers included New Zealand (No. 5, up seven spots), followed by Jordan (No. 33, up 28), Australia (No. 8, up five), United Arab Emirates (No. 46, up 28) and Malaysia (No. 25, up 13).

This is not a tally of economies with high gross domestic product growth, or low unemployment. The goal is to quantify for entrepreneurs and investors the often-qualified information about dynamic economies and what they would consider desirable conditions for business.

Personal freedoms play a big part -- it's hard to start a company or find talented employees under totalitarian regimes and military juntas. So we include measures of the right to participate in free and fair elections, freedom of expression and organization.

Taking care of investors, with laws assuring recourse for minority shareholders in cases of corporate misdeeds, is also important. As a barometer for corruption, Transparency International examines the number and frequency of incidents where corporate assets are misused for personal gain.
Amid the financial turmoil this year, we added stock market performance to reflect the extent of disrepair in countries' banking systems, as well as investor confidence in a recovery. Intellectual property rights, the promotion of free trade and low inflation, combined with low taxes on income and investment, give a snapshot of the conditions for business in each.

All was not lost in a tough year for believers in low taxes, free trade and limited bureaucracy. Despite swelling budget deficits, at least 50 countries recently cut or passed plans to cut taxes on individuals and businesses, including eight of the top 10, with individuals and investors in the U.S. and Norway left in the lurch.
The United Arab Emirates, in particular, has made strides in protecting intellectual property rights through initiatives like educational seminars for thousands of students, with support from corporations like Procter & Gamble, Estée Lauder and General Motors. New Zealand improved its free-trade ranking by pursuing talks with India, Korea and Hong Kong, while securing the first (for a developed nation) free-trade deal with China late last year.

Infrastructure improvements to the Jordanian stock market are improving enforcement of investment laws and compliance by broker members.
Sliding the most this year was Ireland (No. 14, down 12), which even saw plans for a Guinness mega-brewery shelved by parent Diageo as exports slowed. Uruguay (No. 66, down 22), Armenia (No. 94, down 31), Paraguay (No. 99, down 29) and Latvia (No. 45, down 13) rounded out this year's losers.

Expertise, research and published reports -- from the Heritage Foundation, World Economic Forum, World Bank, Transparency International, Freedom House, Deloitte Tax, the U.S. Chamber of Commerce and Central Intelligence Agency --all contributed vital analyses of various socioeconomic indicators on the countries included.

Asher UIlah

http://www.homesforgta.com/

First-timers drive a rebounding market

2009-03-17T09:14:00.000-07:00

'Vancouver detached house prices are the lowest they have been in two or three years,' say one couple convinced that the time is ripe to purchase

KERRY GOLD
Globe and Mail Update
March 13, 2009 at 10:34 AM EDT

Judging from the many shoes littering the front porches at open houses in recent weekends, it's clear that people are back buying houses.

Without a doubt, the market has picked up, and we're barely into March. It's a far cry from the abysmal real estate market of last fall and January this year.
According to the Real Estate Board of Greater Vancouver, residential housing sales were up 94 per cent last month compared with January. That translates into 1,480 sales for the month of February alone. January, on the other hand, was a record-setting sluggish month - the slowest for housing sales in 25 years.
The growth defies the sky-is-falling pronouncements that have made headlines since September last year. But there is a growing perception that it's a buyer's market. A recent RBC/Ipsos Reid poll revealed that 26 per cent of B.C. residents surveyed believed they would purchase a home in the next two years, despite the view that house prices will continue to fall over 2009.

Sean and Karin Whale are unfazed about talk that it’s not a good time to sell their townhouse. They recently had a baby, 14-week-old Dayton, and are looking to trade up to a detached house. (Laura Leyshon for the Globe and Mail)
The condo market is also feeling a surge of life, real estate marketer Bob Rennie says.

"Sales are up," he says. "We have sold 19 [units] at One Madison Avenue in Burnaby in the past six weeks, and another nine at L'Hermitage at Robson and Richards in the past 10 days.
"I do think that the market is seeing a little bit of confidence, combined with some great opportunities with great interest rates."
Armed with low interest rates and realizing a good deal when they see one, brave contrarians are defying fears.

"People can see the value - and the value is phenomenal," real estate agent Lorne Goldman says.

Mr. Goldman says he had a house for sale last year on the city's pricey west side with an asking price of $2.4-million. The sellers were offered $2.3-million, but the buyer failed to complete. The same house is now on the market for $1.85-million.

"It's also very basic Real Estate 101," he adds. "There are people who are getting married, there are people who are married having more children, people being transferred into Vancouver from other cities. There are people who have inherited money who want a bigger house.

"The market continues, despite what is out there in the general economy. The fundamentals are there. People still need to buy groceries, and they still need shelter."

Karin and Sean Whale are unfazed about talk that house prices may fall further or that it's not a good time to sell a home. They recently had a baby and are motivated by their changing lifestyle.

The couple owns a three-storey townhouse on the east side of the city near trendy Commercial Drive, and with the latest addition, they've outgrown it and are looking to trade up to a detached house. They don't worry about selling and buying into the same market.

"Buying low and selling low is not a scary proposition to us," Ms. Whale says.

"We need more space at this time in our lives ...Vancouver detached house prices are the lowest they have been in two or three years."
Long-time Vancouver real estate agent David Campbell says that, unlike a year ago, it isn't the fixer-uppers and in-between houses selling. Demand is high for nice ones that don't require a lot of work, and there aren't a lot of them on the market. And the people buying, he says, are either first-time buyers or homeowners such as the Whale family who are trading up.

"We have many buyers, but we have seen the return of first-time buyers," Mr. Campbell says. "For a good part of, let's say, the last nine months, first-time buyers have been staying out of the market. They were a little scared as to what was happening last fall. But interest rates are at record lows, and prices have adjusted downward, and there are lots of first-time buyers coming back.

"We're getting a lot of move-up buyers as well taking advantage of the low interest rates who say, 'Now I can afford that spread up to the next one.' "
And unlike last fall, when the bottom fell out of the market, they aren't making low-ball offers - the prices have firmed up, he says.

"Last Sunday I had the busiest open house since April," Mr. Campbell says. "I had three offers on a house in 24 hours and it sold over asking."
But not just any house is selling, he adds. Buyers are being selective in this uncertain market.

"They want a good home, so they are picking the better ones," Mr. Campbell says. "That's where we get multiple offers."

Asher Ullah
www.homesforgta.com

The World's billionaires or the biggest looser

2009-03-11T20:42:00.000-07:00

The World's billionaires
by Luisa Kroll, Matthew Miller and Tatiana Serafin, Forbes.comWednesday, March 11, 2009provided by Forbes.com

The world has become a wealth wasteland. Like the rest of us, the richest people in the world have endured a financial disaster over the past year. Today there are 793 people on our list of the World's Billionaires, a 30 per cent decline from a year ago. Of the 1,125 billionaires who made last year's ranking, 373 fell off the list—355 from declining fortunes and 18 who died. There are 38 newcomers, plus three moguls who returned to the list after regaining their 10-figure fortunes. It is the first time since 2003 that the world has had a net loss in the number of billionaires.

The world's richest are also a lot poorer. Their collective net worth is $2.4 trillion (Can$3.0 trillion), down $2 trillion (Can$2.5 trillion) from a year ago. Their average net worth fell 23 per cent to $3 billion (Can$3.7 billion). The last time the average was that low was in 2003.

Bill Gates lost $18 billion (Can$22.3 billion) but regained his title as the world's richest man. Warren Buffett, last year's No. 1, saw his fortune decline $25 billion (Can$31.0 billion) as shares of Berkshire Hathaway (nyse: BRK-B) fell nearly 50 per cent in 12 months, but he still managed to slip just one spot to No. 2. Mexican telecom titan Carlos Slim Helú also lost $25 billion (Can$31.0 billion) and dropped one spot to No. 3. It was hard to avoid the carnage, whether you were in stocks, commodities, real estate or technology. Even people running profitable businesses were hammered by frozen credit markets, weak consumer spending or declining currencies.

The biggest loser in the world this year, by dollars, was last year's biggest gainer. India's Anil Ambani lost $32 billion (Can$39.7 billion)—76 per cent of his fortune—as shares of his Reliance Communications, Reliance Power and Reliance Capital all collapsed.Ambani is one of 24 Indian billionaires, all but one of whom are poorer than a year ago. Another 29 Indians lost their billionaire status entirely as India's stock market tumbled 44 per cent in the past year and the Indian rupee depreciated 18 per cent against the dollar. It is no longer the top spot in Asia for billionaires, ceding that title to China, which has 28. Russia became the epicenter of the world's commodities bust, dropping 55 billionaires—two-thirds of its 2008 crop. Among them: Dmitry Pumpyansky, an industrialist from the resource-rich Ural mountain region, who lost $5 billion (Can$6.2 billion) as shares of his pipe producer, TMK, sank 84 per cent. Also gone is Vasily Anisimov, father of Moscow's Paris Hilton, Anna Anisimova, who lost $3.2 billion (Can$4.0 billion) as the value of his Metalloinvest Holding, one of Russia's largest ore mining and processing firms, fell along with his real estate holdings. Twelve months ago Moscow overtook New York as the billionaire capital of the world, with 74 tycoons to New York's 71. Today there are 27 in Moscow and 55 in New York.After slipping in recent years, the U.S. is regaining its dominance as a repository of wealth. Americans account for 44 per cent of the money and 45 per cent of the list's slots, up seven and three percentage points from last year, respectively. Still, it has 110 fewer billionaires than a year ago.

Those with ties to Wall Street were particularly hard hit. Former head of AIG (nyse: AIG) Maurice (Hank) Greenberg saw his $1.9 billion (Can$2.4 billion) fortune nearly wiped out after the insurance behemoth had to be bailed out by the U.S. government. Today Greenberg is worth less than $100 million (Can$124.0 million). Former Citigroup (nyse: C) Chairman Sandy Weill also falls from the ranks. Last year there were 39 American billionaire hedge fund managers; this year there are 28. Twelve American private equity tycoons dropped out of the billionaire ranks.Blackstone Group's (nyse: BX) Stephen Schwarzman, who lost $4 billion (Can$5.0 billion), and Kohlberg Kravis & Roberts' Henry Kravis, who lost $2.5 billion (Can$3.1 billion), retain their billionaire status despite their weaker fortunes.Worldwide, 80 of the 355 drop-offs from last year's list had fortunes derived from finance or investments. While 656 billionaires lost money in the past year, 44 added to their fortunes. Those who made money did so by catering to budget-conscious consumers (discount retailer Uniqlo's Tadashi Yanai), predicting the crash (investor John Paulson) or cashing out in the nick of time (Cirque du Soleil's Guy Laliberte). So is there anywhere one can still make a fortune these days? The 38 newcomers offer a few clues. Among the more notable new billionaires are Mexican Joaquín Guzmán Loera, one of the biggest suppliers of cocaine to the U.S.; Wang Chuanfu of China, whose BYD Co. began selling electric cars in December, and American John Paul Dejoria, who got the world clean with his Paul Mitchell shampoos and sloppy with his Patrón Tequila.

Cortesy: Forbes.com

Asher Ullah
http://www.homesforgta.com/

Canadian property markets cushioned for 2009

2009-03-05T18:14:00.000-08:00

Posted: March 05, 2009, 10:32 AM by Jonathan Ratner, Financial post

CIBC real estate analyst Rossa O’Reilly says the latest statistics on commercial real estate prices bode well for Canada. The Canadian Property Investment Index, which tracks a diversified investment portfolio of 2,569 properties in 34 property funds, had a 4.7% total return in 2008. By category, the ICREIM/IPD Index found office properties returned 7.6%, residential 6.4%, industrial 2.3%, retail lost 0.1%, and other segments were off 0.3%.

Mr. O’Reilly said in Canada stronger occupancies and lower development activity along with a stronger economy supported the 3.7% return, which was broken down as 6.2% in income grown and a 2.3% decline in capital growth.
By comparison, Australian commercial properties return 1.8% last year, U.S. properties were down 11.2% and United Kingdom properties were off 22.1%.
While income growth is strong in all categories in Canada, rising cap rates are cutting into total return. The cap rate reflect the rate of return on a property and as it goes up the value of the property declines.

“In 2009 it appears likely that capital erosion will continue and our estimate is that 2009 will see total returns in the 0% to -5% range,” said the analyst. “The absence of a prior sharp escalation in property values, excessive development or highly levered investment activity, as well as a less severe credit crunch, have served Canadian property markets well in the current downturn and should continue to cushion them in 2009.”

Asher Ullah
www.homesforgta.com

Canada's 50 Best Managed Companies

2009-02-28T07:55:00.000-08:00

Mary Teresa Bitti,
Financial Post Published: Monday, February 02, 2009

There is good news out there. And this year's Canada's 50 Best Managed Companies demonstrate you don't have to look hard to find it. While headlines warn of economic upheaval, this year's winners are thriving.

That's because they anticipated market challenges and prepared. "Even two years ago, companies were building contingency plans in the event of economic softness," says John Hughes, Deloitte partner, private company services, and national leader of Canada's 50 Best Managed Companies Program. "These companies are close to their customers, close to the market -- they are always searching for information. So they have a good sense of what challenges are coming."

They've also considered all possibilities. "Because they are Best Managed companies, they do this scenario planning regularly," Mr. Hughes says. "They are continually evaluated. They are even helping their customers develop strategic direction."

Since 1993, Canada's 50 Best Managed Companies program has recognized excellence in Canadian-owned and managed companies with revenues over $10-million. Companies are assessed on their overall business performance, sustained growth and the efforts of the entire organization. It includes executing a core vision, creating stakeholder value and excelling in the global economy. The evaluation process pairs applicants with coaches from Deloitte or CIBC Commercial Banking, who provide professional advice and counsel on the presentation. An independent panel of judges selects the final 50 annual award winners.

This year's winners are making the most of their strong balance sheets and cash reserves, seeking out opportunities to merge, partner with and acquire companies that will help them domestically and internationally. The emphasis is on smaller operations that need little investment and add revenue and margin to an-already healthy business. This is why the overriding theme for this year's Best Managed companies is "cautiously opportunistic."

"While there is an emphasis on growth of products and service lines, Best Managed companies are looking to acquisitions to improve their productivity and efficiencies for the long term," says Peter Brown, managing partner of Deloitte's private company services practice nationally. "More than ever, talent will determine a company's ability to win in its market -- and Best Managed companies realize this.

"Best Managed companies are building and rewarding the skills that foster unique ideas to improve operations and sales."
The Best Managed program has become a valuable Canadian network of entrepreneurs and management teams that aids Canadian business by allowing leaders to share valuable lessons. "Our vision for the program as we look to the future is to create a harbour for Canadian businesses to learn through the Best Managed Companies' strategic evaluation process and to make Canadian businesses, and more importantly the people who run them, more successful,"

Mr. Hughes says.
"The power is in the network. Deloitte, in concert with Best Managed program partners CIBC Commercial Banking, Queen's School of Business and the National Post, is compelled to further the Canadian business imperative to help Canadian businesses flourish in the global economy."

ASL Distribution Services Ltd.
Alliance Energy
Atrahan Transformation
BBA Inc.
Barrie Metals Group of Companies
Conestoga Cold Storage
CCI Thermal Technologies Inc.
Clark Builders
Conestoga-Rovers & Associates
Cooke Aquaculture Inc.
Desjardins Healthcare Group
GHY International
Diamond and Schmitt Architects
G.A.P Adventures
Genesis Hospitality Inc.
George Kelk Corp.
Govan Brown & Associates Ltd.
Grand River Foods Ltd.
Harris Computer Systems
Groupe Distinction Inc.
Great Western Containers Inc.
Industries Canatal Inc.
Klick Communications Inc.
Klohn Crippen Berger
Miralis Inc.
Marsan Foods Ltd.
Les Industries Mailhot
NORPAC Controls Ltd
O'Regan's Automotive Group
OnX Enterprise Solutions Ltd.
Partner Technologies Inc.
Quantum Murray LP
PolyCello
R.V. Anderson Associates Ltd.
Radialpoint
Rescan Environmental Services Ltd.
S.A. Armstrong Ltd.
Spitz International Inc.
All Weather Windows Ltd
Veritaaq
Walker Seeds Ltd.
Summer Fresh Salads Inc.
Apex Distribution Inc
Associated Engineering Group Ltd.
Day & Ross Transportation Group
Deca Cables Inc.
Engineered Air
Nuheat Industries Ltd.
Rowan Williams Davies and Irwin
Steam Whistle Brewing

Asher Ullah
www.homesforgta.com

Transition firms take off during downturn

2009-02-16T11:21:00.000-08:00

Transition firms take off during downturn
By Elizabeth Howell,
Ottawa Business Journal StaffWed, Feb 11, 2009 1:00 PM EST
Hamid Rahbar. (Darren Brown, OBJ)

Demand for career coaching, advice picks up as economy pitches downward
With many of the big American banks merged or fallen and the auto industry tanking as it waits for government support, the ripple effects of the fall of these titans are starting to batter the Ottawa employment market.
Venture capital is extremely hard to come by. With cash flow drying up, companies are making hard choices between layoffs or survival – and thus far, the choice has been clear. As reported on OttawaBusinessJournal.com last week, Ottawa-Gatineau shed 5,800 jobs last month alone.

And that's where career transition firms are stepping in, stepping up their business in the process.
"Organizations such as ours get a higher number of calls (during economic downturns), both from an information perspective and for inquiring just in case," says Craig Dowden, who manages the Ottawa branch of Andre Filion and Associates.
"As well, as we have individuals who are affected and they need our support and primarily the concern is, from the organization, to ensure that their (ex-) employees (have) somewhere to assist them."

A recent article in the New York Times indicated career transition firms there experienced a 75-per-cent jump in business in 2008.

The approach at Andre Filion remains the same whether it's hard economic times or not, says Mr. Dowden. The company evaluates a client's next potential job as one that must jive with the firm's lifestyle, rather than grabbing the first opportunity that comes along.

But organizational expert Ann Max of Productive to the Max says there's one thing she'd never advise a client to do right now: start a new business cold, without a job as backup should it fail.

"You need to look at recession-proof businesses," she says."I don't think people understand this recession.

"I just spoke with a client this morning (who was) saying it's affecting their inventory, their supply chain. It's affecting things they don't even realize."
That being said, the approach of career transition firms goes beyond simply revamping resumes. Coaches sit down with clients and evaluate their lifestyle, goals, and how to modify their lifestyle to reach those goals.
The process can be so complicated – and requires such a discerning eye – that Ms. Max says almost anyone can benefit from seeking professional help in this regard.

This is especially true of the battered high-tech industry, struggling in the region since last spring when Dell laid off most of its employees at its Ottawa call centre.

With the technical demands of high tech, representatives of Vitesse Re-Skilling says most clients going through job transitions need to take formal training of some sort before switching.

Vitesse's business has also been booming lately, says Hamid Rahbar, the organization's president and chairman.
"Clients should realize that they need to be reskilled," says Mr. Rahbar. "They can achieve it through different ways; one of them is to go back to university or do self study, or go somewhere and have a chance to have hands-on experience"

Asher Ullah
click here

Ontario look into harmonizing GST and PST

2009-02-08T16:57:00.000-08:00

Ontario weighs tax blending

McGuinty says province will look into harmonizing GST and PST, as business groups push for action
Feb 08, 2009 04:30 AM

Robert Benzie
QUEEN'S PARK BUREAU CHIEF

NIAGARA FALLS – Ontario will aggressively explore harmonizing the provincial sales tax with the federal GST to help businesses battle the recession, Premier Dalton McGuinty says.
Speaking to 250 Liberals at the party's provincial council meeting here, McGuinty vowed to make his administration more business-friendly by slashing red tape.

"We in government need to help by making investments in workers, technologies and research more affordable," the premier said.
Later, McGuinty told a news conference "there seems to be an emerging consensus around harmonization. I'm not committing to doing it, but I just think we owe it to ourselves to take a good, long hard look at that."

Business groups and the federal government have pushed Ontario for action on the harmonization front for years.
"The Ontario Chamber of Commerce has put forward a position that says you absolutely must harmonize the GST and the PST," McGuinty said. "That's a tough thing to do politically, and we take a revenue hit. All previous governments have shied away from that. We need to give that a very serious look, for example."

In a 102-page report tabled last month, the chamber of commerce implored Queen's Park and Ottawa to blend the 8 per cent PST and the 5 per cent federal goods and services tax as soon as possible.

Quebec, New Brunswick, Nova Scotia and Newfoundland have done so, and federal Finance Minister Jim Flaherty has urged Ontario to follow suit.
Such a change would see Ontario businesses become more productive and save about $100 million annually, and it would cut down on paperwork, but the costs of many goods would rise. That's because some items are currently taxed federally and not provincially – including books, children's clothing, feminine hygiene products and heating fuels.

The province also believes harmonizing the taxes will cost it money because the PST would be removed from manufacturers' purchases of machinery, equipment and other things not subject to GST. Officials say this cost to the provincial treasury is more than would be recouped by the PST being added to GST-taxed items.

McGuinty said Ontario could not harmonize its tax with the GST without a large infusion of money from Ottawa.
"Consumers will be affected by this and our treasury takes a hit in the billions. In the past, when provinces have decided to move forward on that they ... have struck a deal with the feds," he said.

Although the premier suggested the taxes couldn't be blended in the province's March budget, he said it is not a pie-in-the-sky scheme.
"It's something that we're going to take a close look at, but I'm sure that as we pursue this conversation with businesses there will be some other things they might want to talk about as well," said McGuinty.
"Those are the kinds of things that we might begin to address" in the budget. "But it will take more than just one budget and one initiative to enhance the competitiveness of our businesses."

McGuinty said any harmonization agreement was not a "quid pro quo" with Ottawa, which has responded to Ontario's demands for an auto bailout, a regional development office for southern Ontario and enriched health transfers.
"It's something that's been bubbling in the background for a long time and other parts of the country have already adopted harmonization when it comes to PST and GST. One thing that I can say for sure is we can't do this without federal support," he said.

Progressive Conservative MPP Tim Hudak (Niagara West-Glanbrook) told reporters it was "time for Dalton to get off the proverbial pot on this issue."
"There's no doubt that the provincial sales tax punishes business investment," said Hudak. "We need to ensure, however, that this is not going to put another weight on the backs of consumers already struggling with high taxes and high energy costs under Dalton McGuinty."

Coutesy: Globe and mail

Asher Ullah
Sales Representative
Re/Max Active Realty Inc Brokerage
www.homesforgta.com

An Outburst of Action in an idle Market - Detached house in Toronto listed for $559,000, sells for $611,000 in January

2009-02-01T19:38:00.000-08:00

CAROLYN IRELAND
From Friday's Globe and Mail
January 30, 2009 at 12:00 AM EST

Julia Lewis knew she had to brace homeowner Lucy Ivens for a deep freeze in Toronto's real estate market at the start of January.
Ms. Lewis was helping her long-time friend to ready her house in the Annex neighbourhood for sale after Ms. Ivens moved into a seniors' residence.
"She was aware of the economic turmoil," says Ms. Lewis. "I tried to sit her down and explain it could take a long time."
So, after Ms. Lewis warned Ms. Ivens that the house might take as long as three months to sell, the Victorian semi-detached on Brunswick Avenue hit the market on a Friday with an asking price of $464,000. By Monday morning, offers had started rolling in. Later that evening, Ms. Ivens had received seven bids and sold the house for $492,000.
Enlarge Image
Despite the sluggish market, a few bidding skirmishes have popped up in Toronto recently. One house was listed at $559,000, selling for $611,000 after seven days on the market in January.

"She was overwhelmed," says Ms. Lewis of her 90-year-old friend. "She was very happy at the end."No one was more surprised than broker Elden Freeman of Freeman Real Estate Ltd., who listed the house. He had not set an offer date because bidding wars had become so rare in Toronto.

"The intention was not to get multiple offers — we were totally shocked."
After a dismal fall stretched into a bleak December in Toronto's housing market, many agents were nervous about what January might bring.
But, while the market continues to be sluggish in some areas, a few bidding skirmishes popped up in the opening weeks of 2009, agents and homeowners report.

In a survey of 23 Toronto markets, Royal LePage Real Estate Services Ltd. found that the average price of a detached bungalow dropped 8.2 per cent to $411,483 in the fourth quarter of 2008, compared with the same period of 2007.
Two-storey properties surveyed dipped by 6.8 per cent year-over-year to $513,417 during the fourth quarter.

Cheri Dorsey McCann of Sutton Group-Bayview Realty Inc. says open houses have been booming so far this year. She has sold five houses this month after selling only two during the fall.

Sellers of a three-bedroom detached house near Yonge and Lawrence received multiple offers on a house listed for $669,000.
The sellers are move-up buyers who didn't want to purchase another property until they knew how much they would receive for their existing property.
"They're upgrading," says Ms. McCann. "We negotiated a long closing. Now they can buy and feel comfortable."

Joanne Gludish of Royal LePage Real Estate Services recently sold a house near Kipling and Eglinton for 112 per cent of asking after the house was on the market for one week.The house was listed for $324,900 and sold for $365,000. More than 50 parties toured the three-level backsplit, which Ms. Gludish was aiming at first-time buyers in her marketing.

Back on Brunswick, Mr. Freeman listed a detached house in December for $559,000 and was surprised when it sold for $611,000 after seven days on the market.
"It was insane," says Mr. Freeman of the bidding war during the holiday season.
The house did not show well, he says, because the same owner had lived there for 60 years and accumulated a lot of belongings.

But in the spring of 2008, the semi next door, with no parking, sold for about $900,000.Mr. Freeman says the house listed for $559,000 had more than 100 people looking at it despite the fact that he didn't set up a website for it or have interior photos taken.

"There are buyers out there," he says.
He says bidders figured they could pay about $600,000 for it, invest $150,000 or $200,000 in fixing it up and still feel that they were ahead of the game compared with the high price paid for the renovated semi in the spring.
"It attracted amazing attention," says Mr. Freeman.

The broker says that he sometimes has trouble persuading sellers that they should list their houses for less than their neighbours received in late 2007 and early 2008. He doesn't want to take on the time and expense of listing a property at an unrealistic price."The values have come down. I'm sorry. People have to get that through their heads."

Ms. Lewis says she decided to list Ms. Ivens's house with Mr. Freeman after spending several months researching house sales in the Annex.
The house is a charming Victorian with lovely period details, but it has not been renovated.

Ms. Lewis figured that would be appealing to buyers who do not want to pay for another owner's outmoded improvements.

She had previously interviewed several agents and was advised that the house could sell for between $475,000 and $530,000."Knowing that the market had gone down, we decided not to price it higher," she says.

Ms. Lewis did not want Ms. Ivens to have to continue paying for insurance, maintenance, taxes and utilities while she was living elsewhere.
She also decided to have the house ready for the first week after New Year's, figuring that many other sellers wouldn't have their houses ready until later in the month."Those who are thinking of buying are starting to look," she says. "I feel that you get a bit of a jump."The strategy paid off, she believes.
"There was a market here for a house like this."

Asher Ullah
Click for deals you are thinking for
www.homesforgta.com

New budget and home ownership?

2009-01-28T13:08:00.000-08:00

REALTORS’® lobbying efforts have achieved significant victories in the recently announced 2009 Federal Budget, including proposals to expand the RRSP Homebuyers’ Plan, provide a First-Time Home Buyers’ Tax Credit, and provide a Home Renovation Tax Credit.

The implementation of these announcements depends on the approval of the Budget by the House of Commons.

REALTORS’® Efforts InstrumentalUnder the leadership of the Canadian Real Estate Association, REALTORS® from across the country, including TREB Members, played a key role in convincing the federal government to move ahead with these initiatives. In particular, REALTORS’® efforts focused on expanding the RRSP Homebuyers’ Plan to make it more useful for homebuyers. REALTORS® have been lobbying on this issue for a number of years.
Homebuyers’ Plan

• The federal budget proposes to increase the withdrawal limit for first-time homebuyers using the Homebuyers Plan from $20,000 to $25,000 (per individual).
• Under this program, first-time homebuyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15-year period, starting the second year following the year of the withdrawal.
• Since 1992, an estimated 2 million Canadians have used the Home Buyers’ Plan to purchase approximately 900,000 homes, making this program a huge success. Unfortunately, as time has passed, the usefulness of this program eroded because withdrawal limits were not adjusted. For this reason, REALTORS® lobbied the federal government to increase the Home Buyers’ Plan withdrawal limit to $25,000.

First-Time Home Buyers’ Tax Credit
• The Budget proposes a 15 per cent credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.
• To assist first-time home buyers with the costs related to the purchase of a home such as legal fees, land transfer taxes, etc.
Home Renovation Tax Credit
• The Budget proposes a 15 per cent credit to be claimed on the portion of eligible home renovation expenditures exceeding $1,000, but not more than $10,000, meaning that the maximum tax credit that can be received is $1,350.
• 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.
• Credit can be claimed on eligible expenditures incurred on one or more of an individual’s eligible dwellings, including houses, cottages, and condominium units owned for personal use.

Additional InformationMore information is available from the Federal Government’s Budget Web Site. An overview of the government’s budget announcements is available on this page of the Government Budget Site.

Courtesy: Toronto Real Estate board

Asher
www.homesforgta.com

Real estate numbers looking up for 2009

2009-01-27T13:00:00.000-08:00

Life in Canada's real estate market is expected to be brighter on the 2009 side of the annual divide, says Royal LePage upon releasing national sales data for the last three months of 2008.

The quarterly survey's Calgary data tells a story that has by now become familiar: just as Calgary's real estate market eclipsed the national average on the upside, it's doing so again on the way down.
The average price of a Calgary bungalow fell by 4.5% to $410,333 from $429,889 in the fourth quarter last year compared to one year ago, the survey says. Nationally, prices in this category fell by 4.8%.

The contrast between Calgary and national figures becomes pronounced in two-storey home and condominium categories. Prices in the former fell by 11.6% to $408,263 from $461,811, the steepest drop in the country, while condominium prices fell by 9.5% to $257,189 from $284,144, second only to Edmonton's 14% price drop. The new year will see a rebound of consumer confidence, which last month had plunged to depths not seen in nearly three decades.

"The tumultuous times that characterized the end of 2008 are not anticipated to define 2009," the survey says, noting nearly half of the respondents said they believe the public funds Ottawa is just about to pump into the economy will have a positive impact on the country's real estate market. As well, 82% of the respondents said they believe Barack Obama's ascension to the presidency of the U.S. will boost the confidence of consumers north of the border.
That confidence remains depressed, says the Conference Board of Canada, which released its January index of consumer confidence yesterday. The Prairie provinces, including Alberta, saw the confidence index dip 1.8% this month to 75 points, well above the national average.

Coutesy: Calagary Sun

Asher Ullah
www.homesforgta.com

Breaking recession psychology

2008-12-29T13:08:00.000-08:00

Here's something that everybody knew: we are worried about our jobs and household finances and the country's economy.

The Conference Board of Canada says its December consumer confidence index sank to levels just above the historic lows hit during the recession of 1981-82.
The board had some other bad stuff to say. But we're going to choose to highlight some of the bright spots the board found in its telephone survey of 2,000 Canadians.

For one thing, the survey discovered that, for the second straight month, an increasing number of consumers said it was a good time to buy large items such as TV sets, fridges, stoves, washing machines and cars.

Glen Hodgson, the board's chief economist, noted that optimistic consumers are taking advantage of steep price cuts.

He also pointed out that the economy is in better shape than in the country's two previous recessions. Some predict Canada's unemployment rate could reach eight per cent next year, but that would be down from 13 per cent during the early 1980s and 10 per cent in the early 1990s.

In Canadians' favour is a decline in energy costs, which is taking out some of the sting of filling up cars and heating homes.

Unfortunately, any bright spots are, as Mr. Hodgson noted, being "crowded out by a fear of the future ...and that fear is not totally rational."

The economist is pinning his hopes for an increase in consumer confidence next year on an effective federal stimulus package expected to be announced as part of next month's budget.

If the package works, it could go a long way to breaking the "psychology of recession," which causes consumers to Hodgson also points out that confidence will return once most Canadians realize they are keeping their jobs and, perhaps, getting a small wage increase.

When that starts to happen, you'll see a change in attitude," Mr. Hodgson said.
So, much depends on breaking the "psychology of recession," which takes hold when worried consumers stop spending, which in turn causes retailers and manufacturers to cut back on goods and jobs.

We're counting on our political leaders to give us reason to be hopeful.

Source: Posted By Brantford Expositor

Asher Ullah

www.homesforgta.com

Is your debt is 'Good' or 'Bad'?

2008-12-20T20:01:00.000-08:00

People are usually scared and spectacle about the word 'debt'. It reminds them of a feeling of obligation and deficit.

But is it really true? Well their are two types of debts: Good and Bad.

A Bad debt is to finance things that can be consumed. This is the kind of debt that creates an unhealthy financial situation. Credit card debt is often considered bad debt because of the nature of items that credit cards are used to purchase. E.g clothes, restaurants etc.

Even debt used to finance a vacation is bad debt. Even though it might help you feel better and be more productive once you return, a vacation does not appreciate in value.

Debt is good as well. A debt considered an investment is a good one. You’re probably thinking, “How can anything as bad as debt be considered an investment!” If someone took on the debt to purchase something that will increase in value and can contribute to your overall financial health, then it’s very possible that debt is a good one.

For example, a home purchase can be considered to be a good debt. Since homes usually appreciate in value, the mortgage loan to pay for the home is an investment. Another example of a good debt is a student loan taken out to finance a college education. Earning a college degree usually means that you’ll make more money over your lifetime.

Some people consider using good debt to pay off bad debt, like getting a mortgage for $110,000 instead of $100,000 and using the extra to pay off credit card balances. This isn’t a good idea for several reasons. First, repaying debt with debt is never a good idea. Second, it ends up taking longer to pay off the mortgage than it would have otherwise. Third, the higher mortgage increases your monthly payments and the time it takes to build equity in your home.

Use cash to repay debts, not more debt. One must still be careful that don’t take on too much debt, even if it’s good debt. If you’re overloaded with debt, then it doesn’t matter whether the debt is good or bad, it still hurt your financial health.

So now evaluate your financial situation and find out whether the debt you have is good or bad.

Asher Ullah
Sales Representative
Re/Max Active Realty Inc. Brokerage
Mississauga, ON. Ph# 416-568-5932
http://www.estate4tune.com/

What to expect On Dec Dec 9, 2008 Interest Rate Annoucement

2008-12-02T12:49:00.000-08:00

Its time for me to put some of my thoughts to share with others.

As we all know that the next scheduled meeting of Bank of Canada will be on Dec 9, 2008 and the important question is what will be the new change in the inetrest rate will be?

Most of the experts are expecting 25 to 50 bases points reduction that will be based on the key market indicators.

Its most likely that the bank will go for 25 bases points and reduce a further 25 bases points in next Jan 22, 2009 meeting.

Most people that have recently bought a home or will be planning to buy a home in near future will be happy with a lower variable rate and off course will enjoy lower monthly payment as well.

But on the other hand the banks wouldn't be happy as they are making the lesser amount money on the variable mortgages, and hence further rate reductions will make things even more difficult for them.

The banks right now are more happy to have a client with fixed mortgage as compare to variable, as they know that the lending rates at least in short run will not be on the increasing trend.

Well lets see what will the expected change would be on Dec 9, 2008. But hopefully it would be one that is good for economy!

Asher Ullah
www.homesforgta.com

Energy-efficient Housing Made More Affordable with Mortgage Loan Insurance

2008-11-23T08:19:00.000-08:00

More than 17 percent of the energy consumed in Canada is used to run our homes। Buying an energy-efficient home or making energy-saving renovations can offer big savings. A 10% CMHC mortgage loan insurance premium refund and extended amortization period without surcharge may be available when you use CMHC insured financing to purchase an energy-efficient home or make energy-saving renovations. Help the Planet, Help Your Wallet CMHC has added environmentally friendly features to the Mortgage Loan Insurance it offers.

If you use CMHC insured financing to buy an energy-efficient home, purchase a house and make energy-saving renovations or renovate your existing home to make it more energy-efficient, a 10% refund on the Mortgage Loan Insurance premium may be available. You could also have the added flexibility of a longer amortization (the period of time required to repay your mortgage) from 25 years to a maximum of 35 years for loan-to-value ratios in excess of 80% (or 40 years for loan-to-value ratios of 80% or less), significantly reducing your monthly payments. The Government of Canada actively promotes energy conservation and initiatives to reduce greenhouse gas emissions that contribute to climate change. How It Works Obtaining an energy assessment through an NRCan qualified energy advisor. NRCan has developed an energy assessment and labelling system to help homeowners make energy-saving choices when buying a home or renovating. For a fee, a NRCan qualified energy advisor will evaluate the house to determine its energy efficiency rating on a scale of 0 – 100.

If You're Thinking of Buying or Building a Home

Step 1: Find out how energy-efficient it is If the house you're considering buying is: an energy-efficient R-2000 model; has an energy efficiency rating of 77 (on or after July 27th, 20051) or above; was or will be built under a CMHC-eligible energy-efficient building program; or the building in which the condominium unit you're buying (on or after July 27th, 20051) is 25% more energy efficient, than if constructed to meet the requirements of the Model National Energy Code for Buildings (MNECB), you could be eligible for a 10% mortgage loan insurance premium refund and extended amortization when you use CMHC insured financing to purchase that home or condominium unit. The house's energy efficiency rating can be obtained by: having an energy assessment completed by an NRCan qualified energy advisor; obtaining an R-2000 certificate or CMHC declaration from your R-2000 certified builder; obtaining a CMHC declaration from your builder that is a member of a CMHC-eligible energy-efficient building program; or for condominium units, a letter from Natural Resources Canada (NRCan) or the project engineer for condominium units must be obtained. If you are planning on building a new home and your builder is not R-2000 certified or a member of a CMHC eligible energy-efficient building program, you should have an energy advisor evaluate the building plans before the house is built. This can help you ensure that you will meet CMHC's requirements once the construction of the home is complete and it is evaluated. 1 An energy rating of 80 is required for purchases occurring on or after November 18th 2004 and until July 26th 2005.

Step 2: Boost your energy efficiency If the house you plan to buy has an energy rating below 77 (effective July 27th, 2005. A rating of 80 is required for purchases and renovations occurring on or after November 18th, 2004 and until July 26th, 2005), to be eligible for a 10% premium refund, you will need to obtain an energy assessment through a NRCan qualified energy advisor and renovate using part of the CMHC insured funds based on your energy advisor's list of recommendations in order to increase your score by at least 5 points and to at least 40 overall.

Step 3: Discuss and arrange a CMHC-insured mortgage Talk to your lender and ask for a CMHC insured mortgage. Step 4: Confirm the improvement After you make the renovations recommended by your energy advisor, you will need to have a second assessment done to determine the energy-saving effectiveness of the renovations। To be eligible for the 10% premium refund, the second rating must show that the house has achieved an increase of 5 points to a minimum overall rating of 40.

Step 4: Confirm the improvement
After you make the renovations recommended by your energy advisor, you will need to have a second assessment done to determine the energy-saving effectiveness of the renovations. To be eligible for the 10% premium refund, the second rating must show that the house has achieved an increase of 5 points to a minimum overall rating of 40.

Step 5: CMHC 10% Premium Refund
Submit a complete application form to CMHC for the refund.

For Futehr details: kindly go to the Web site http://www.cmhc.ca/en/co/moloin/moloin_008.cfm

Till next time:

Asher Ullah
www.homesforgta.com

Is that a good time to buy?

2008-11-14T08:51:00.000-08:00

Well Folks this is me back again and answering the most important question in regards to todays market: "Is this is the right time to buy? or just wait?".

Most of the people are thinking that right now wait and see strategy will works best instead of actullay going for a "BIG' decision of buying a home. As anything can happen interms of economy, jobs etc.

My answer to those people is that what will happen if God forbid your job will not be their tommorow? how will you pay your rent even?How will you pay your other expenses?

I woudl say its actullay the best time to buy as not only prices are great but at the same time negocitations are easier as well. Though I must say that its not an ideal time for selling your property.

The market works in cycle and real estate is the most safest of them all. A small low in shorter run will provides a window of opportunity to avail chance as in the longer run the real estate will always goes up. Also keep in mind the great intrest rates that are there and will be there for a while as well.

All I can say is that those going against the tide will be benefiting, otherwise the market once come back to its normal, will not help you in saving money at that time.

So folks stop thinking and start acting, those who act will for sure. Buy things when they are on 'sale' instead of when they are at their normal price.

Asher Ullah
www.homesforgta.com

The Market - Today and Tommorow

2008-10-29T16:32:00.000-07:00

Well folks time for me to start writing again.

For those that have recently burned fingers in TSX and NSE will be thrilled on getting news about strong market rallies for last two days.

Investors in any market go with basically two big options for investments:
1) Stocks
2) Real Estate

Out of the two which one is better ????? Hummmm...

Well the answer lies in how much Risk an investor can take. The higher the risk is the better the the results will be.

I am not advocating that real estate is far more better to option as its more secure and way less riskier then Stocks. But what I am saying is that its size of your risk that one can take from the uncertainty to certainty. If you can take the high level of risk then the stocks for sure have a much quicker return as compare to real estate.

But in my opinion a rule of thumb is to diverse your investments and go with the amount of risk that you can take with a combination of both.

Until next time!

Asher
Sales Representative
www.homesforgta.com
Re/Max Active Realty Inc.

Housing Market Condition

2008-10-21T14:18:00.000-07:00

There’s been a lot of talk about real estate in the news in recent months. We’ve heard about declining housing starts, falling existing home sales, double-digit price depreciation, subprime fallout and foreclosures – in the United States. Fortunately, we live in Canada. And Canadian real estate markets are far-better positioned than their American counterparts for a good number of reasons.
Subprime mortgages represent less than five per cent of our market nationally.
Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country.
Canadians have more equity in their homes.
We have less debt than our neighbours south of the border.
Speculation has played little or no role in existing home sales in Ontario.
The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009.
The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit.
The Canadian job market is stronger than the US, adding more than 200,000 jobs so far this year.
Interest rates remain favourable.
Housing values in Ontario major centres did not experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth.
Immigration continues to play a key role in housing markets. Between 2001 and 2006, more than 1.1 million immigrants came to this country, with about half settling in the province of Ontario. Immigrants tend to purchase a home within the first five years of living in Canada.

Asher
www.homesforgta.com

Market Update -

2008-10-19T09:36:00.000-07:00

Hi Folks!

Well after sometime I am back again.

People are asking about the market hapenings right now.

Well all I can say is that its not Canada that is shwoing signs for slowness, but in fact its all over the globe that is showing similar signs.

Canada is still has the strongest ecocnomy in the G 8 countries. And the proactive strategy will help up to cope up the porblems before they will happen.

Market is still good in terms of the realestate. And one important thing is that we are already in a conventional slow time of year and it will pick up in now after winter.

So just chill and stop worrying about more upcomming things. i.e. are you in best of your physical shape for showling the snow form driveway?? lol.

Till next time!

Asher
www.homesforgta.com

Grow House in Vaughan

2008-09-18T18:55:00.000-07:00

I was showing a home last week in Vaughan around Jane and Major Mac area and my client liked a fabulous detached corner home an a Court location.

The home was about 8 years old and has got an excellent layout and my clients loved that.

My clients were ready to put up an offer but while talking to one of the neighbours found out that it was a former Grow house, and was busted by police.

After knowing this information I did the complete analysis about the previous sales record and didn't find any particular thing about the house.

Finally I inquire with the listing agent and he was clue less in that as well, and lastly he told me that he will further investigate with the seller. I also told him that if it was formally a grow house either the police may have the4 record or even they don't then the home inspector will find out for sure.

Later on the listing agent called me and was very upset and told me that the seller now accepted that is was a grow house before when they bought it about three years ago but did the environmental survey as well and they have a report.

Anyways later on it was updated on listing as well that it was used as grow house and changed the price as well.

Finally in protecting my client's best interest I advise the pros and cons about buying grow house and and the clients appreciated this alot.

This was a second House that I have found out in last two years that emerges as a grow house, and the common thing is that both of them were in the north side of GTA. But remember they can be in any city.

Ash
Re/Max Active Realty INc.
www.homesforgta.com
416-568-5932