Always Get A Home Inspection!

I keep catching a glimpse of an infomercial for Mighty Putty. In this ad the host states that you can use the putty to "Fix, fill, seal and repair fast and make it last" - he then demonstrates stopping a leak in copper pipes instantly. Also, pvc piping under the sink...Imagine you purchased a home and the whole house was kept together with this putty??? I cannot believe that someone would buy this stuff let alone thinking that it would be a good idea to use the putty instead of a licenced plumber, or other trades man (depending on the job). Buyer beware is always in effect but please, please, please hire a great home inspector (not all are created equal) and do your due dillegence.

Don't buy a home made of Mighty Putty!
;-)

Home Buyer Expenses

The following is a list of expenses normally incurred by a Buyer when completing the purchase of a Residential property within Toronto.

1. Legal Fees
The tariff rate for residential properties is between .25% and .5% of the purchase price, normally not to exceed $1,600.00. Lawyers may negotiate their fees and will provide individual quotes when requested.

2. Land Transfer Tax - Provincial & Municipal

Provincial Land Transfer Tax
Purchase Price Land Transfer Tax
$55,000 - $250,000 (Purchase Price x 1%)
$250,000 - $400,000 (Purchase Price x 1.5%)
$400,000 - up (Purchase Price x 2%)

Municipal Land Transfer Tax
(City of Toronto only)
Purchase Price Land Transfer Tax
$ 000 - $55,000 (Purchase Price x 0.5%)
$56,000 - $400,000 (Purchase Price x 1%)
$401,000 - up (Purchase Price x 2%)

3. Survey
A new survey may be necessary if the Seller does not have an "acceptable" survey and one is required by the first Mortgagee. Cost: $750.000 - $1100.00

4. Disbursements
A typical list of disbursements is as follows:
Law Society Transaction Levy $ 50.00
Tax Certificates $ 65.00
Building Clearance $105.00
Sheriff's Certificates $50.00 to $100.00 (avg.)
Deed Registration $ 70.50
Mortgage Registration $ 70.50
Registry Office Searches $ 80.00
Water Status Reports & Consumers Gas $ 41.05
Copies, Postage, Fax etc. $ 25.00

5. Title Insurance (Purchase and Mortgage)
$250 - $300 (if new home is under $500,000)
$400 (if resale over $500,000)

6. Adjustments
On a pro rata basis the lawyer will apportion the following expenses, as of the date of completion: Taxes; Oil (usually topped-up by Seller and Buyer receives a full tank); Water (only flat rate accounts in Toronto); Common expense fees

NOTES:
Building clearances City of Toronto will not comment on surveys. They give only zoning and work order information, front yard parking, committee of adjustment files, etc. Toronto Hydro will give neither written nor verbal information. It is entirely up to the Seller and Buyer to call them. First time buyers have certain exemptions from the provincial and city land transfer taxes. All disbursements with the exception of registration costs are subject to applicable G.S.T.

Contact Ryan Roberts about buying a house in Toronto

Buying A Home In Toronto

At the beginning of this adventure it can seem very daunting to both experienced and novice Buyers. Whether you are interested in buying the equivalent of Casa Loma or a smart pied-a-terre, you may appreciate help.

GETTING READY:
How much money do you have set aside for your down payment? This will affect the size of mortgage you will need and whether you can even consider buying. The more money you have the lower the amount you need to borrow. Round out your preparations by getting pre-approved for a mortgage. You'll find out how much money the bank will let you have and how much it'll cost to carry. You'll also get a mortgage rate locked in for 60 or 90 days, depending on the lender.

FINANCING OPTIONS:
If you don't have the 20 percent down payment needed for a conventional mortgage, you're going to need mortgage insurance, which can cost up to 2.5 percent of the amount of the loan. Most people add the cost to their mortgage principal, which will increase the monthly payment somewhat. Another way to get around a low down payment is by getting a second mortgage, usually through a mortgage broker. There are pros and cons either way. Your sales representative and/or our lender can explain more fully. First-time buyers, or people who have not owned a home in five years, can borrow up to $20,000 each from their registered retirement savings plan to help pay for a home purchase. The money must be repaid in annual installments within 15 years or there is a tax penalty.

WISH LIST:
What do you want your home to have? Two car parking, pool, fireplace, eat-in kitchen, walk-in closets? What neighbourhood do you want? Local amenities? Transportation? Put it down on
paper. This list will change according to affordability and as you look at homes. It will serve as your guidepost as to what is truly important to you and show you where you can compromise if needed.

STARTING OFF ON THE RIGHT FOOT:
A sales representative will help explain to you all about agency relationships and how we can best serve you. You should choose to have your sales representative work for you and not the seller. Basically, this means your sales representative agrees to represent you and you alone in buying a house. The buyer-sales representative still gets paid through a share of the selling commission, so don't worry about extra cost. It is included as part of the purchase price. Remember that your sales representative cannot work for you without a signed Buyer Representation Agreement. It formalizes the relationship and confirms that your sales representative is working on your behalf.

LIFE WITH YOUR SALES REPRESENTATIVE:
The sales representative will review with you your wish list, financial data, benefits and concerns of individual properties and of various neighbourhoods to get a sense of what available properties will be best for you.

KEEPING SCORE:
Take notes and make special reference to things like property taxes, interior details, the appearance of neighbouring homes and proximity to schools, shopping and recreational facilities.

PREPARING AN OFFER:
Your sales representative will help you set a value by analyzing sales of similar homes in the area. As a rule of thumb, most houses sell for 95 percent to 105 percent of the asking price. Beyond price, there is a closing date to consider as well as the question of whether you want a condition on home inspection, financing and any appliances or furnishings to be included in the
deal. Offers are a tense part of the process. Listen to your sales representative carefully and note any changes made to the offer or any counter offer. You may be asked to stretch your budget. This is thetime you'll have to make hard and fast decisions. Offers often go back between buyers and sellers - your sales representative will negotiate on your behalf and be available for advice and support.

TIPS FOR A HOT MARKET:
Committing yourself to spend hundreds of thousands of dollars on a home is best done after a long and vigorous discussion of the pros and cons and then, ideally, a night to sleep on it. Too bad you won't have time for this in a roaring real estate market. If you find a home that you just have to have in a hot market, you should try to secure a quick sale by offering over the asking price. If a bidding war breaks out, set a ceiling based on your own financial position and recent market developments. Be aware that the seller may reject all bids and ask for additional money. "Clean" offers, or those with no conditions, are most attractive to sellers. And why not? Who wouldn't want to sell to someone who said she didn't need to check with her bank or make sure the home passed a housing inspection before signing the contract? Having a pre-approved mortgage can eliminate the need for a financing condition on your offer. You can easily get peace of mind by having a home inspection before writing up your more competitive, firm offer.

TIPS FOR A TEPID MARKET:
Size up the seller and then decide how aggressive you want to be with your offer. Try to find out why they are selling. Has there been a marital breakup, an estate sale, a transfer, financial difficulties? What have comparable properties sold for? Remember, hard bargaining is one thing, insultingly low bids another.

THE DEPOSIT:
Five per cent of the purchase price is usually sufficient as a sign of good faith. Don't forget to ask that the deposit be placed in a term deposit so that it earns interest until it's needed to close the deal.

HOME INSPECTORS:
Having your home inspected allows you to move in with your eyes open to its physical strengths and weaknesses. Recommendations from friends, agents and lawyers are a good way to find a good home inspector. Inspections should last two to three hours and cost between $250 and $450. Make sure your inspector has insurance to cover any errors or omissions he might make.
Ensure an impartial opinion on your home by rejecting inspectors who offer to repair the problems they find.

THE DEAL:
So you've made a deal, which includes agreement on the price, the down payment, the deposit, closing date, the chattels and possibly mortgage details. Once the Agreement of Purchase and Sale is signed, it's delivered to your lawyer. The lawyer will then search title and determine that it is free and clear of all encumbrances including encroachments on your lot, work orders on the property or liens. You do not want to buy any problems. On the closing day you give the lawyer the rest of your down payment, the property is registered in your name and you are handed the key.

CLOSING COSTS:
An ironic term because there seems to be no end to them. In addition to the cost of your home, there are lawyer's fees and related expenses, the home inspection, land transfer taxes, a home appraisal and adjustments to cover property taxes paid in advance by the Seller. You will also have to pay for a survey if the Seller can't supply one. Estimate about 2 percent of the price of your home to cover the closing costs.

PRIDE OF OWNERSHIP:
Finally! This is something you'll get from the first moment you step through the door of your new home. You'll realize that it has all been worth it. Congratulations!

If you would like help buying a home contact a professional real estate agent in Toronto, contact Ryan Roberts of Bosley Real Estate in Toronto at 416-519-4040 or www.MyDreamTorontoHome.com

Ontario eases home energy audit requirement

Ontario Energy Minister George Smitherman has backed down from a plan to require energy audits each time a house is sold. A new amendment to the province's Green Energy Act will allow home buyers to waive their right to the $300 audit, as long as they do so in writing.
The change will provide more flexibility in cases where the buyer intends to knock down the property or do major renovations, Smitherman said. But he said he's not anticipating that many buyers will opt out of an audit.

"I rather suspect as people are making the most important investment of their life, they're going to find that to be very valuable and important information," he said. "But we could see some scenarios where the home at question really isn't worthy of an audit, if you will."

Ontario realtors have complained the additional costs would hurt homeowners in what are increasingly difficult economic times. The Liberal government is backing off from the audits because it's afraid of the public backlash, said interim Progressive Conservative Leader Bob Runciman.

Many home buyers will also be hit with additional costs when the province merges its eight per cent sales tax with the five per cent federal GST, he said. "They know that this is a problem for them and they have to back away, and this is one area where they can make some adjustment," he said.

The legislation will also be amended so residents will have an easier time objecting to wind turbine projects near their homes.

March 2009 Toronto Real Estate Market Watch

I just uploaded the March Market Watch PDF to my site: Toronto Real Estate Sale Info
I will upload the April version once it is released in a week and a half.

If you ever have any questions please let me know, I would be happy to explain the stats and the relevance of each breakdown. Contact me (Ryan Roberts) here.

New Street Cars Look Very Futuristic

The Toronto Transit Commission (TTC) has announced a deal with Bombardier to supply the next wave of street cars (aka Light Rail vehicles) for the city of Toronto. I personally will miss the old style but these should be more efficient than the previous and will also carry more people.

I find it a little difficult to picture one of these futuristic modes of transportation through the older areas of Toronto like Queen Street east and West as well as College Street in Little Italy.

Things To Do Before You Move Into Your New Home

So, you have secured a great new home but, you have some time before it closes and you move in. So, what should you do? Well, there are a number of things to consider:

1. Choose a reputable lawyer that will assist you with the closing details, title search, etc. (please, please ask them about title insurance, it is worth it!). Ensure all closing costs are discussed with your lawyer and a realistic time line is set with your lawyer as more often than not the keys to your new home will not be in your hands until 5PM on the closing day.
2. Speak to your mortgage broker or lender about the final details of your mortgage.
3. Look into your home insurance and content insurance, have this in place - if you have a mortgage on your home your lender will require the home insurance as a condition of lending the funds (they want you to protect the investment).
4. Utility companies, call them to let them know when you are moving in (Enbridge Gas, Toronto Hydro, or for those of you into Green initiatives - Bullfrog Power).
5. TV, Internet, Telephone land line (that is if you still have one of course). Bell, Rogers
   
6. Notify your contacts of your address change (also call Canada Post to have them redirect your mail to your new home).
7. If you are considering some renovations or improvements to your new home consider using your purchaser viewings to have tradesmen in to quote the work. This way you can hit the ground running upon closing.
8. If you don't want to move your furniture (and you friends don't want to either...) then consider hiring some professional movers to assist!

Following these simple steps will make the transition into your new home far simpler!

If you ever need a reputable referral for any of the above services please let me know as I would be happy to provide a selection for you to choose from. ryan@ryanroberts.ca or contact Ryan Roberts here

Jane's Walk - May 2-3 2009

Jane's walk is back this year. It celebrates the great thinking of Jane Jacobs and her life.
The initiative has grown to cities all over North America! For the Toronto walk details please click here: Toronto Jane's Walk The walks are run by prominent people of Toronto. I will certainly be checking out the the Annex walk on May 2nd starting at Spadina Subway station on the east side of Spadina just north of Bloor.

About Jane Jacobs click here
Jane Jacobs Wiki page
Walk details: http://www.janeswalk.net/cms/files/Online_Schedule.pdf

Why Live Outside of Toronto???

I just read an interesting stat: 82 is the average number of minutes per person it takes to get to work in Toronto! The average length of the commute is 26 kms! The amazing thing is that this includes people already living in TO. How do people outside of Toronto do it? Imagine what their drive is like if the average is 82 minutes!!! * source: Metrolink, "Big Move" and Spacing Magazine.

Annex Neighbourhood Home Sales For March 2009

Sales by street in the Annex Neighborhood for March 2009:
• 2 sales on Brunswick Avenue
• 2 Sales on Annex Lane
• Howland Avenue
• Madison Avenue
• Admiral Road
• Elgin Avenue

Average Sale in the neighborhood was $960,375; Median Home sale was $805,000 – there were 8 sales in the month of March.

Types of houses sold in the Annex this month:
• 2 Attached/Row/Townhouses
• 1 Duplex
• 5 Semi-Detached houses

-Working in the community - Ryan Roberts

* Geographic Area: West of Avenue Road, South of Dupont, North of Bloor Street West, East of Bathurst.

BIG on Bloor Street Festival - Volunteers Wanted...

BIG ON BLOOR
STREET FESTIVAL
Sat. June 20

Want to get involved in the neighbourhood but not sure how?
Come have fun and meet other residents who love the neighbourhood!

Call for volunteers

There has been a great response again this year to the BIG on Bloor Street festival which takes
place on Saturday June 20. The
entire event is volunteer-run and we
still need more people to assist on the day of the festival for 4-5 hours each. Needed:

General Volunteers (150 – 6/block)
Morning:
(9am-12:30pm) help set up road barriers, tables, garbage cans, porta-potties,
signs, stages, PA, vendors, car removal
Afternoon and Evening:
(noon – 6pm) Assist vendors, hand out information, security, check garbage etc
under control (an asset if you speak a second language)
Night: (5pm-10pm)
Remove and stack tables and chairs, clean up street, gather and put our
recycling and organic garbage at curb, return equipment to Long & McQuade


Block Captains (25)
Morning:
(9-12:30) supervise a group of 4-5 volunteers in getting the street ready (set
up road barriers, tables, garbage cans, porta-potties, signs, stages, PA,
vendors, car removal)
Afternoon and Evening:
(noon – 6pm) supervise volunteers to Assist vendors, hand out information,
security, check garbage etc under control
Night: (5pm-10pm)
Supervise volunteers to remove and stack tables and chairs, clean up street,
gather and put our recycling and organic garbage at curb, return equipment to
Long & McQuade
*An asset if you have a cell phone

Stage Volunteers (3-4 stages)
Stage Managers:
organize the set up and change overs between groups
MCs: introduce
the groups, talk about BIG
Sound techs: set
up and operate sound equipment, help return equipment
Roadies: help set
up (morning) and tear down (evening) stages and equipment

More information and to volunteer go to www.bigonbloor.com

Dufferin Grove and Dovercourt Park Real Estate Sales for March 2009

Sales by street in the Dufferin Grove and Dovercourt Park Neighbourhood for March 2009:
• 2 sales on Dovercourt Road
• Dufferin Street
• Gladstone Avenue
• 2 sales on Concord Avenue
• Hallam Street
• Delaware Avenue

Average Sale in the neighbourhood was $539,938; Median Home sale was $456,500 – there were 8 sales in the month of March.

Average Value in 2008 vs. 2007
* 2007: Average Sale Price: $405, 620 (125 Sales)
* 2008: Average Sale Price: $490, 283 (99 Sales)

"Living and working in our community" - Ryan Roberts

* Geographic Area: Dufferin to Ossington; College to Dupont

---

Both Dufferin Grove and Dovercourt Park make up a portion of the Toronto Real Estate Board regions of C01 and C02. The statistics for these regions in the month of February 2009 are as follows:

Detached homes:
C01: 6 sales at an average value of $613,650 and a median price of $616,500
C02: 11 sales at an average value of $728,764 and a median price of $575,000

Semi-detached homes:
C01: 10 sales at an average value of $557,850 and a median price of $557,850
C02: 20 sales at an average value of $684,805 and a median price of $524,950

Attached/Row/Townhouse homes:
C01: 13 sales at an average value of $519,869 and a median price of $516,000
C02: 3 sales at an average value of $654,000 and a median price of $710,000

*statistical information from TREB's Market Watch

Dufferin Grove and Dovercourt Park Historical Real Estate Statistics click here

Very Controversial School Comparison Site!

This has been all over the news of late. This site allows anyone to compare schools down to specific demographics. It is quite possible that the government will have to remove this site as it has been receiving a lot of flak from the media.

Come to your own conclusions: www.edu.gov.on.ca/eng/sift

March Blog Poll Results

The results are in for the March Real Estate Poll:

I asked whether people would buy a house in Today's Buyer's market?
40% said "Yes, I would"
30% were "Not Sure"
30% said "Yes, Right now!"
Interestingly no one said "No".

March Market Update

March resale housing results show year-over-year sales down 7% and median price down 2.5%.

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.”

“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.”

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. 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.

Median Price

The median price in March was $317,500 from the $326,000 recorded in March of 2008.