Did the foreign buyer tax affect the Canadian real estate market?

With the combination of mortgage regulations, along with the newly-introduced foreign buyer tax, it begs the question: Has it changed our real estate market?

Clues from statistics released by the Canadian Real Estate Association indicate that the answer is “yes”.

The number of existing homes changing hands throughout the country declined 6.2 per cent in May compared to April, according to the Canadian Real Estate Association’s latest market data.

In the Greater Toronto Area, by far the country’s biggest market, transactions tumbled by 25.3 per cent over that same period denting national figures.

Gregory Klump, CREA’s chief economist, ties the drop directly to Ontario’s Fair Housing Plan, which the Ontario Grits unveiled on April 20th. (1)

Evidence in Waterloo Region can also be seen as more homes being listed are returning to the traditional “first-come-first-serve” approach rather than the ubiquitous process of “holding offers” as seen over the last 6 months.

So yes, the market is balancing out, for now. Buyers new to the market can rejoice, and those selling and buying can breath a sigh of relief, as the pressure is reduced somewhat. As for those who were hoping to cash out with their sell, it’s still a viable opportunity. Homes are still highly desired in this area as Waterloo Region sees ongoing technology growth and infrastructure investment.

(1) http://news.buzzbuzzhome.com/2017/06/ontarios-foreign-homebuyer-tax-crea.html

How the Wealthy Barber can help you save for a home

When it comes to finances, regardless of your age, you’ll need to think about it sometime. Whether you just secured your first serious job, you’re about to up-size to a larger home, or before retirement, the best time to think about your finances, is now.

If the thought of picking up an economics book, or reading the finance section of the newspaper stresses you out, then consider The Wealthy Barber or The Wealthy Barber Returns.

The Wealthy Barber
The Wealthy Barber

Easy to read, to the point, and realistic, it’s a great way to get into thinking seriously about where you want to go and how you’ll get there financially. As you read, you’ll find you’re on the right track, that there are moments of dread when you think back to a bad financial decision, or you’ll close the book, adamant to change your ways for the better.

What else? He’ll recommend that you buy a home that you can well afford, rather than the most expensive home that you can afford.

Good tip.

 

Ion -The Kitchener Market Stop

New signs are beginning to pop up around the Region, letting everyone know that the Ion LRT is on its way! Rail lines and wires criss-cross the city and there’s lots of activity, especially in areas surrounding the LRT Ion Corridor. At Charles and Cedar Street, the Farmer’s Market stop is highly convenient for all the Market shoppers stopping in on busy Saturday mornings, and will be a welcome addition for those toting heavy grocery bags full of produce.

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With the Ion on the horizon, there have been lots of new developments, including a new building at King+Cedar. Kitty-corner from the Kitchener Farmer’s market, home to St. Clair Appliance for 61 years, and steps away from the new ION stop, this busy location is about to get some new life! You can see a short video below of the building progress.

If you’re thinking about investing in this highly viable area, you might want to consider a great development opportunity at 21 Cedar Street South. With excellent visibility and convenience, this property is zoned for many uses, including retail and residential. Interested? You can visit lrtland.com

Planning for green fingers and thumbs?

If you’re new to gardening, or have moved to a new home with many unknown plants, you’ll be pleased to know that Waterloo Region has a fantastic Facebook group “Gardeners of KW“, that can serve as a handy resource whether you’re a seasoned or new gardener.

egg-shell-seed-starters-gardenista

For those who join, there are some basic rules:

This is essential behaviour for the gardeners in this group: lettuce be thankful to each other for sharing by voicing our gratitude, squash selfishness by offering and accepting advice and goods happily, turnip to help thy neighbor freely, and always make thyme for fellow garden-lovers. Acting this way will create peas of mind for all group members.

-Gardeners of KW

Whether you’re growing food, landscaping or trying to identify the plant in your new backyard, this is the place to be!

Peas out!

Starting or adding to your investment portfolio

When it comes to starting or adding to your investment portfolio, it is important to find a property with great bones. Unless you have renovation experience, and you’re knowledgeable and familiar with zoning regulations and building codes, it is a good idea to stick with investments that are already legal multi-family dwellings.

For example, this week, coming to the market, we have a legal up-down duplex in the Kingsdale neighbourhood in Kitchener.

Quiet, and family-oriented, this home can be used as an investment with two rental units, you can live in the upper and rent the lower to pay your mortgage or build equity faster, or simply live in the whole home yourself.

Because of the unique layout, it is easily used as a single family home if desired. This can also be convenient if you have extended family who will reside with you.

230ninth_just_listed

This brick and aluminum siding home has a full-basement, the windows are unusually large and the fully fenced yard and double garage and driveway make it suitable for one family or two. In addition, public transit, the expressway and the 401 are nearby, and proximity to shopping and schools makes it convenient too.

In general, with an income-producing basement unit, ceiling height, egress windows and the entry/exit are important factors to consider in order to have a safe, code-abiding investment, and the location makes it more accessible for varying needs.

For more information on this listing, you can visit: 230ninth.com

Winds are a changin’

The spring market in real estate is always a busy time for buyers and sellers alike. With March’s home sales statistics showing continued strong interest by Buyers in Waterloo Region, more Sellers are considering the benefits of using this market climate to their advantage, as they plan to downsize, or sell investment properties to release equity and potential financial gain.

In fact, a new poll of 3000 Canadian adults conducted by CIBC, finds 41 per cent of Canadian with plans to sell their property are doing so to cash in and make a profit.

It’s definitely a prime time to sell, particularly in light of some signs of cooling happening in areas surrounding Toronto. So while the market is hot now, it won’t last forever. If you’re thinking about moving, why not get the market to work for you?

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If you’re wondering just how much the market has added to your home, and how much you might be able to take home after the sale, be sure to speak to a REALTOR® who will be able to help you effectively capture that profit to help you buy your new home, save for the kids’ education, or fund that retirement nest egg.