Here is what I think:…like our neighbors to the South, Canadians have a DREAM and that includes a home where they share family life. We have more stringent tax laws and mortgage laws than south of the border and the “Canadian Dream” has always included paying off your mortgage and not using your home as an ATM.

Since 1980 when I started selling houses the market has gone up and down a few times. To me it has been all about finding the right fit for a family and I have watched a lot of those families grow and enjoy a few properties as their repertoire of moments grew. Values have changed but the real value in Real Estate has not been financial, it has been lifestyle oriented. When did home ownership become more about the money and less about the family?

Granted, Toronto has changed and the market here has been one of the healthiest in North America. We are lucky but are we overpriced? Talk to someone from Manhattan, Chicago, San Francisco, Hong Kong or London and they will tell you no…

Buyers: make your decisions based on community, schools, street life, Kitchens and Family rooms,  realizing that the market will go up and it will go down…just enjoy the ride in a home that fits your needs and makes you feel that you are living your “Canadian DREAM”.

Here is a link to an excellent recent article in the Economist. The article does deal with the economics of the marketplace but don’t give up the long term lifestyle dreams. My house goes up and down in value, but it is the center of great family memories are unable to monetize.

Your thoughts??

Feel free to ask questions and email them back to me.

 

REALTORS® comments were in response to a recent City Finance staff report indicating that the Toronto Land Transfer Tax is expected to generate higher revenue than what was budgeted for 2011.

“What goes up, also comes down. For years, REALTORS® have been warning the City that the Land Transfer Tax is an unpredictable revenue stream because it is based on the number, and value, of real estate transactions, which are very difficult to predict in any given year,” said Richard Silver, President of the Toronto Real Estate Board. “City staff’s recent budget variance report proves how difficult it is to budget based on unpredictable revenue like the Land Transfer Tax. The unpredictability of the Land Transfer Tax might not be a problem when times are good, but what will the City do if real estate markets cool in the middle of its budget cycle and the tax brings in less than expected?”

REALTORS® believe that responsible fiscal management is the only long-term solution to the City’s financial challenges.

“The Toronto Land Transfer Tax is not part of the solution; it is part of the problem. It is a crutch that has delayed the true solutions to the City’s financial challenges, which are a combination of reducing costs and using fair revenue sources, like property taxes and user fees” said Silver

REALTORS® believe that the Land Transfer Tax is an unfair tax because it targets one segment of Torontonians, those purchasing a home or business property, to pay for services provided to all citizens. The Toronto Land Transfer Tax costs the average Toronto home buyer about $6,000 up front. When added to the provincial version of this tax, average Toronto home buyers face over $12,000 in land transfer taxes.

“The first requirement for any tax should be that it is fair. The Land Transfer Tax is far from fair. It forces someone buying a home or business property to pay thousands of dollars more to receive the same services that others receive without paying this tax. That is simply unfair,” said Silver. “On the other hand, property taxes and user fees are much fairer because they are paid by everyone who benefits from, or uses, City services. Property tax and user fee revenue is also predictable and reliable, unlike Land Transfer Tax revenue. Toronto residents also enjoy a very low property tax rate.”

REALTORS® are urging City Council to continue to move forward with reviewing all fair options for getting the City’s finances in order including cost reductions, user fees, property taxes, and efforts to grow its assessment base.

“One of the best ways for City Council to address its budget challenges is to grow the City’s property tax base. Toronto is the only GTA municipality with a second land transfer tax, which puts the City at a competitive disadvantage. Furthermore, the City’s business tax rates, which are much higher than the City’s residential tax rates, are uncompetitive compared to other GTA municipalities. The Toronto Land Transfer Tax and high business property taxes create a double whammy that discourages growth in the City’s property assessment base. Eliminating the Land Transfer Tax and making business property taxes competitive will help to attract new development and keep businesses in the City. Maintaining and growing the City’s property tax assessment base provides long-term, sustainable and reliable tax revenue.”

Home renovations undertaken by Ontario’s 3.2 million home owners produced over $20.3 billion in economic activity last year. Unfortunately, a large amount of home renovation work in this province is conducted via the ‘cash deal’ or through the underground economy. According to housing experts at Altus Group, 37 per cent or $5.2 billion of the output from the provincial home renovation industry in 2010 was conducted through the underground economy.

Unlicensed workers hurt the reputations and competitiveness of legitimate renovation contractors and cheat governments out of billions of dollars. The Ontario Home Builders Association (OHBA) estimates that the underground home renovation economy causes the loss of up to $298 million in HST revenue annually, $1.6 billion in income tax revenue annually and $767 million in other revenues such as CPP, WSIB, Employer Health Tax and Employment Insurance Premiums.

In addition, the underground home renovation industry poses a number of serious risks to home owners. Underground contractors often do not meet health and safety standards, carry no liability insurance and do not offer warranties. Moreover, home owners have little to no recourse in the event of shoddy or unsafe workmanship. If a worker falls on your property, you, as the property owner, may be held liable.

REALTORS® and home builders believe that the best way to mitigate the growth of the underground home renovation economy is to give home owners a financial incentive to use professional contractors. Professional contractors have HST numbers, maintain insurance and pay taxes.

Specifically, REALTORS® are urging all candidates running in the 2011 Ontario election to support the creation of a permanent Ontario Home Renovation Tax Rebate. If the provincial government were to institute a renovation rebate, payable to the homeowner, homeowners would be far more likely to insist on a receipt creating a paper trail that would deter underground economic activity.

The payment to the homeowner provides the incentive for written contracts which is good for everybody, particularly governments losing billions of dollars in tax revenue to the underground economy and at the same time it can go a long way to stimulating the provincial economy

REALTORS® look forward to continuing to deliver this and other messages important to home buyers and owners during and after the provincial election campaign.

September 2, 2011 –

One example of the diversity within our professional community is a group of REALTORS® who also happen to be motorcycle enthusiasts. Each year they get together for a ride in support of the REALTORS Care Foundation, which assists shelter-related charities throughout Ontario. This year’s ride, which took place from July 13th to 15th, marked the culmination of an important milestone as riders completed a multi-year goal to visit each of the 42 real estate boards in Ontario. Their objective was to raise funds and awareness of the Foundation’s charitable endeavours, and increased participation in this year’s event showed that their efforts are working. Thirty-five riders took part this year, in a journey that took them throughout Central and Eastern regions of Ontario.

The ride kicked off at the Toronto Real Estate Board with stops at the Durham Association of REALTORS®, the Northumberland Hills Association of REALTORS®, and the Kawartha Lakes Real Estate Association before wrapping up the day’s travels at the Peterborough and Kawarthas Association of REALTORS®. On day two, participants made stops at the Bancroft, Quinte, and Rideau-St. Lawrence Real Estate Boards, remaining in Brockville overnight. 

Day three included a visit to the Cornwall and District Real Estate Board before reaching the final destination, the Ottawa Real Estate Board. While media and local politicians greeted riders at various stops throughout the journey, a particularly notable reception took place during the final leg of the trip.

The riders’ arrival in the nation’s capital coincided with 90th anniversary celebrations at the Ottawa Real Estate Board, with representatives on hand from the Ontario and Canadian Real Estate Associations. As anniversary presentations wrapped up, everyone in attendance heard the rumbling of motorcycles and rushed outside to greet riders. During the last week of July a special visit was paid to the Thunder Bay Real Estate Board, to reach the goal of visiting every real estate board in the province.

As always, TREB’s CEO Don Richardson took part in helping raise awareness. I asked Don to share this year’s experience with us, and here is what he had to say…

“The ride was great! It was very heartening to see even more riders this year. A real sense of community involvement by each Board we visited. The last Board we stopped at was Ottawa. This was perfect, as Ottawa was celebrating their 90th Anniversary with speeches and presentations, apparently the timing was perfect, because just as the last speech ended, those at the celebration heard the bikes rumbling outside as we arrived, and all rushed outside to welcome us. It was heartening to see the support for the Foundation and the increase in awareness. It was perfect throughout. Perfect weather, great energy, excellent planning while raising awareness for a worthy cause.”

Although the total numbers have not yet been calculated, it is anticipated that this year’s ride will have raised more than $50,000 for the Foundation, which will bring the total raised since the event’s inception to more than $220,000. Given that the Foundation operates solely on the basis of voluntary donations, these funds are vital to its success. Thanks to efforts like the ride, the Foundation, now in its 44th year, has an impressive track record. Last year alone, TREB provided REALTORS Care Foundation grants to 35 different shelter-related charities throughout the Greater Toronto Area.

While plans will soon be underway for the 2012 Ride, it’s not too late to sponsor one of the dedicated individuals who took part in this year’s event. Since the Ontario Real Estate Association pays for The REALTORS Care Foundation’s administrative costs, every dollar donated directly benefits shelter-related charities throughout the province.  For more information visit www.realtorscareontario.ca

“Positive economic news and low borrowing costs led to strong sales through the first five months of the year, including the increase in May,” said Toronto Real Estate Board President Bill Johnston. “At the same time, the market has become much tighter compared to last year, due to a substantial dip in new
listings.”

Homes were on the market for an average of 23 days and sold for an average price of $485,520– up nine per cent compared to $446,593 in May 2010. The strongest rate of price growth was experienced for single-detached homes sold in the City of Toronto.

“We have seen clear-cut seller’s market conditions emerge over the past two to three months,” explained Jason Mercer, TREB’s Senior Manager of Market Analysis. “The robust price appreciation that we have seen will hopefully prompt more households to list, resulting in a more balanced market later this year,” continued Mercer.

One of the main reasons we chose Holland America is that two of the three of us are addicted to the Internet and the Ship advertises the best of technology, Internet in your room, and technology classes in the use of the “Window Live” platform.

The first day out I checked out the Computer Lab and was impressed with the class and on-site instructor. Like a good Social Media addict, I tweeted that I had a great class provided by an excellent instructor on our Holland America ship. Within a minute whoever tracks the Twitter in the HAL offices had tweeted back to me that he/she was glad that I had enjoyed the course…I was impressed…a large Corporation was reaching out to engage the consumer…

The next day after a frustrating few hours in the Internet Bar, the room Internet not working as promised, and the charges being excessive for less than dial up connectivity, not aided by the fact that a harassed and surly attendant was getting complaints from all over, I tweeted directly to the HAL birdie that although we were having a great time, the Internet was less than stellar on-board.

One minute later, the answer came back….”Thanks for letting us know…I will pass it on”. Days went by…..I tried once more, same answer exactly…”I will pass it on”.  Never hear back and when I was asked for comments at the end of the trip, I again made the exact same complaint….

Fast forward to today: I have never heard back from Holland America. Almost weekly they mail me offers of new and exciting locations to visit. Each one visits the shredder….let them spend money. I will never travel with them again and I have told this storey at least 50 times….that cannot be a good business decision for Holland America…

If you take the time and money to try and engage the consumer, then you have to listen to the bad as well as the good and do something to correct or assuage the clients sentiments…Is it that hard for corporations to get it? It is all about commitment!

Take a flight on an Asian Airline, visit a Taj or Oberoi Hotel in India….service is a commitment and given with gusto.

What are your stories?