You are currently browsing the monthly archive for December 2008.
Many of you may be in the same shoes as I and many of my clients. We have received the tax assessment for the year 2009. According to the Municipal Property Assessment Corporation (MPAC) my house went up $70,000. In reality my house went down approximately 5% from last year. A lot of my clients have been calling me to verify whether their assessments are inline with actual market values. The most extreme case that I have seen was MPAC assessing a home at $2 Million when comparable homes in the area were nowhere near that value. So I enlisted the help of a real estate appraiser and his appraisal value came out to $1.5 Million. We are now taking this report to challenge MPAC’s value and reducing my client’s property tax. In the end he will be paid for his troubles, saving approximately $4,000.
If you would like to challenge your MPAC value, you are not alone because I am here to help you. I can analyse your home with you on the phone or by email and we can establish whether or not your assessment is over assessed. There are no costs for this initial service. Areas that I service are: Toronto Real Estate, Mississauga Real Estate, Brampton Real Estate, Oakville Real Estate, Richmond Hill Real Estate, Markham Real Estate, Aurora Real Estate, Newmarket Real Estate and Vaughan Real Estate.
Please call or email me to discuss.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Merry Christmas Everybody.
Have a safe and warm holiday.
Remember to check for air leaks in the house. Use caulking or rubber strips to insulate your home. Saves money and the environment.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
During the first half of December there were 1,487 resale transactions reported in the GTA. Sales are down from 2,868 sales recorded in the same period a year ago. The average price is currently $360,652 down from $404,707 recorded in the same period a year ago. During the same period in 2006, the average price was $343,048.
There are currently 24,708 listings on the TorontoMLS system, from 17,027 a year ago. The average number of days a home now remains on the market is 43, as compared to 33 days a year ago. Sellers are achieving 96 per cent of their listing price, as compared to 98 per cent a year ago.
Treb President Maureen O’Neill assures us that the situation is not as bad as what the media has portrayed, “Keeping today’s market statistics in perspective, MLS® statistics confirm that over the last 10 years the price of homes has increased in value. What this means for the consumer is that real estate continues to hold its value and is a solid choice for long-term investments”
Who can benefit from the reduced sales and lower average prices?
This is an excellent time for first time home buyers. They get to enter the market with a lower entry price. In addition, they get rebates from the Provincial and Toronto Land Transfer Tax.
This is an excellent time for home owners that want to move up in to a larger home or to a better area. Even though their existing home has dropped in price, their potential home has dropped even more.
This is an excellent time for investors looking for an investment out of the stock market. A safe investment would be a condo studio unit similar to my previous deal of the week. Small studio units and one bedroom units are the safest in our existing economy because affordable low-cost housing is in high demand for sale and lease.
I take in to consideration your location, price and your own personal financial and family situation when considering your purchase or sale. I can provide you with information about neighbourhoods, school districts and realistic prices because of my vast knowledge of the GTA.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Nice headline right?
If you thought you’ve seen it before, than you must have seen the Front Page of Tuesday’s Globe and Mail. The Sub-heading mentions an 11 per cent decline in prices and a 44 per cent drop in Ontario housing sales in large RED print, based on the December 15th press release issued by the Canadian Real Estate Association.
The most important part of the article is at the bottom.
CORRECTION: “The national average resale home price did not fall by 20 per cent after the onset of the last recession in the early 1990s. After a retreat in 1990, the national price rebounded for a few years and then fluctuated. Incorrect information was published Tuesday.”
Don’t you love it when the media exaggerates to sell newspapers and advertisements? Reminds me of a quote “Numbers don’t lie, people do”. I wonder why they did not put the correction on the front page with a BIG BOLD Heading.
I would like to share with you a story told by Michael Polzler from Re/Max that really hits the bulleye with what the media can do.
It is of a hot dog vendor in Chicago who sold the very best hot dogs by the side of the road. His business was booming, people loved his hot dogs, and his business steadily increases month after month. The man loved his business and believed in the need to provide great food at a great price.
This man was so busy advertising and selling his hot dogs and making lots of money, that he didn’t even have time to read the newspaper or listen to the radio. Consequently, he never heard a word about a predicted recession or the need to cut back to save for the potential economic slowdown. As long as he continued to offer his delicious hot dogs, his customers bought them. He kept selling, and they kept buying.
Then one day his college educated son told him that an economic recession was surely coming. His son told him that people wouldn’t have enough money to buy his hot dogs. The successful hot dog vendor believed this, so on his son’s advice, he cut back on his advertising. Additionally, he started ordering less supplies and product, because after all, people would be cutting back soon.
He even went so far as to take down many of the billboards that lead to his roadside stand. And sure enough, people stopped coming to him. People stopped buying his hot dogs, and he eventually went broke.
Then he thought to himself. “How smart my son is in predicting this.”
The lesson is to not be influenced by what you read in the newspapers or hear on your television. It’s true that market conditions have changed, but human nature has not. Real estate is one of the largest investments people will make in their lifetime. It is also one of the safest. Get out and spread the word. If you bought a home in 1980 worth $67,000, that property is valued at over $300,000 today – an increase of 350 per cent and the profit is capital gains exempt. It’s no wonder that Canada has one of the highest home ownership rates in the world, at close to 70 per cent.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Beginning in January 2009, Canadians will have an extra incentive to save money. It’s called the Tax-Free Savings Account (TFSA). Canadians will be able to contribute up to $5,000 annually to the TFSA, where returns and withdrawals are not subject to income tax. I can see how the TFSA would be useful for my clients. For example a couple wants to renovate their house in 3 years. In 2009, 2010, 2011 they each contribute $5,000 in their own TFSA and invests the money conservatively. By 2012, when it comes time for the renovations, they would have $33,000 instead of $30,000. In 2013, our couple here would have the option to re-contribute in full what they withdrew.
How the TFSA Works
- Any Canadian resident 18 years or older can open a TFSA
- You are allowed to contribute up to $5,000 a year
- Your earnings within the plan are completely tax-free
- You are not taxed on withdrawals
- Your TFSA contributions are not tax deductible
- You can withdraw money for any reason
- Your withdrawals can be re-contributed, in full, in a later year without affecting your regular annual contribution room
- Your withdrawals have no impact on government benefits such as Child Tax Benefit or GST credit
It seems like it’s not much but every little bit counts, especially with the power of compound interest. My economics teacher told me a story about compound interest that I never forgot.
One day little Kirby was thinking of ways to increase his $20/month allowance. So he thought of a plan and he suggested it to his father, ” Daddy, let’s change my allowance to a daily allowance. You’ll give me 1 penny on the 1st, 2 pennies on the 2nd and doubling it every day.” Kirby’s father counted and it was only 64 cents after the first week, so he agreed to it. Can any one tell me how much Kirby’s father owes his son after 30 days?
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
As you all know the City of Toronto approved a Municipal Land Transfer Tax and (LTT) was effective February 1, 2008. It is applied in addition to the Province’s Land Transfer Tax.
The follow chart is how the LTT is calculated.
| Value of Consideration | MLTT Rate |
| Up to and including $55,000.00 | 0.5% plus |
| $55,000.01 to $400,000.00 | 1.0% plus |
| Over $400,000.00 | 2.0% |
The rebate for first time purchasers is up to a maximum of $3,725.
The analysis of the Toronto Land Transfer Tax was conducted by respected economists from the C.D. Howe Institute and the University of Toronto. It determined that this tax is directly responsible for reducing sales in the City of Toronto by 16 per cent. You can click the link to read the report yourself.
Of course I think the tax is not doing the economy any good but I doubt it has reduce sales by 16 per cent. I believe the sluggish economy is more to blame for the reduced sales.
However, please keep it in mind for the upcoming municipal election campaign, that the LTT should be eliminated.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
The average GTA price in November 2008 was $368,582. During the same period last year, the Toronto MLS system
recorded an average of $393,747, and in November of 2006 overall GTA prices averaged $355,727.
For November 2008 recorded sales were 3,640 down from 7,313 sales recorded during the same period last year.
Almost a 50% increase in active listings and 28% increase with Days on the Market. We are definitely in a buyers market now. But for Sellers, there is nothing to fear, because with my promotional plans your house will definitely perform above these averages. Even though values have dropped, the average prices have stabilized and still remain above 2006 numbers.
When looking at these figures you have to take note that the City of Toronto imposed a Land Transfer Tax (LTT) on Feb. 1st 2008. How does the Toronto LTT affect the numbers? The tax was approximately 1.1 percent. Therefore in 2007 everyone that was buying or selling wanted to do it before the tax took into effect, which in turn boosted sales numbers. In 2008 the LTT has had a detrimental negative effects on the real estate sector. There was a research done by an Economics Professor at the U of T on this topic. I’ll locate this article and do a future posting on this unfair tax and what we can do about it.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Click for event details
It’s happening this Sat. Dec 13-14 at the CNE Direct Enegy Centre – 9am-6pm. Be Warned that people go as early as 6am to line up. But luckily the line-up is indoors unlike in the past.
Here’s an opportunity to improve the decor of your homes. A clean and well-decorated home is really important when listing a home for sale. It also reduces the time the home stays on the market. A number of colleagues have felt the need to use the services of a home stager to sell homes recently. An alternative to a home stager and to save money, you can pick up a few key pieces at the warehouse sale to update your decor. Check out http://decor8blog.com/ or Sarah’s House for some design cues. In this market it pays off to have a presentable home when showing to potential buyers. Just a reminder for my clients, as part of my listing services I provide a complimentary home staging consultation.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
Gold Edition
My Gold Foil Business Cards have finally arrived. Please send an email to info@kirbychan.com with your Name and Address and I’ll send you one.
On the back of the card, I’ve included a free market evaluation. This is not just any free market evaluation, it’s personally performed by me. I’m a real estate appraiser, trained by the Real Estate Division of the University of British Columbia. For the past 6 years I’ve been a professional appraiser for the major banks, credit unions, insurance companies, lawyers, builders and private individuals. For the free market evaluation please send an email to info@kirbychan.com with your Name and Address.
Next on my agenda is to finish my website. The one on http://www.kirbychan.com is provided by my brokerage. I’m designing a website that comprises of more information and resources for buyers and sellers. I think I need to convey the major benefits I provide, what makes me stand out among the sea of Realtors. The following is what I offer so far in terms of listing promotions.
Online Promotions for my listings
- List your property on my website and 4 of my affiliate websites which receives thousands of visitors a month.
- List your property on www.mls.ca with virtual tour and up to 9 photos
- List your property on www.remax.ca
- List your property on www.remaxcondosplus.com – over 3 million visitors a month
- List your property on www.luxuryrealestate.com – for listings over $750,000)
- List your property on www.ren.ca – Real Estate News, a division of the Toronto Star
- List your property on www.househunting.ca - The Financial Post
- Property will be marketed to my database of Clients, Real Estate Sales Rep., Mortgage Brokers, Bankers and Appraisers.
Offline Promotions for my listings
- Advertise your property with “Just Listed” cards, mailed out in your neighbourhood.
- Advertise your property in my Re/Max office “Market Report” newsletter. Distributed to 5 relocation companies and 4 newspapers.
- Advertise your property in the Real Estate News Magazine every fourth Friday. REN has a distribution of 200,000+ copies inserted in the Toronto Star!
- Advertise your property in Resale Homes and Condos Magazine.
- Photo feature sheets for potential buyers.
Every real estate agent needs to spend money on marketing. I am different because of where I spend the money. I don’t send flyers and junk mail nor advertise on garbage cans and park benches. I save my advertising money on advertising the properties that I list for my clients. Please leave me a comment with suggestions of anything else that I can do. I want to provide service that is above and beyond any other.
Kirby Chan
Real Estate Sales Representative @ Re/Max
info@kirbychan.com
www.KirbyChan.com
416.305.8008
After writing the last post, I got news of my good friend Georgia Addesi leaving us. I’ll always remember the last time we saw each other. We had a great time watching the musical CATS. She had a great sense of humour. Always trying to speak Chinese to me and in return I’ll speak Greek to her. I gave her a Chinese name and she gave me a greek name, Kyriakos. Georgia was a brave woman that battled cancer for the past 5 years. My heart goes out to her husband and her two children, for their immense loss. There will be a trust fund for her two children. I will contribute 50% of my commission from the sale of my next transaction to the trust fund. Please help and spread the word. Georgia will be at Heritage Funeral Centre at 50 Overlea Blvd tonight at 6-9pm.
You’ve touch our lives with the simple things that you did.
I’ve been missing you G.
Kirby Chan
