Transit Future Woes - Budget Cut backs could put Road Widening on Hold.

If you were hoping to trade in your car for the region’s new rapid transit service in the next few years, you may want to hold on to your keys.

The budget unveiled by Ontario Finance Minister Dwight Duncan Thursday asks Metrolinx to delay $4 billion in transit spending during the next five years, meaning Viva’s bus lanes, including an extensive project on Newmarket’s Davis Drive, likely won’t open as soon as hoped.

Viva didn’t know about the funding delays until the budget announcement, but will soon meet with the province and Metrolinx, spokesperson Dale Albers said. The province and York Region will work together to deliver programs in a reasonable time frame, he said.

Mr. Albers emphasized the province’s prior commitments to transit and that no projects are cancelled. But with shovels nearly ready to go in the ground in Newmarket, Markham and Richmond Hill, the future is suddenly uncertain.

“It does’t seem sensible to halt the project this far along,” said Newmarket Regional Councillor John Taylor, who began making enquries as soon as he heard about the delay.

Engineering work for Davis Drive’s rapidways is complete and expropriations have proceeded to the point some buildings along the strip are boarded up.

Mr. Taylor said he was very concerned, but spoke with regional chairperson Bill Fisch Friday and is confident Mr. Ficsh and staff, who brought Viva so far already, will ensure things don’t grind to a halt.

“I’m hoping we’ll have a positive outcome. I wouldn’t want to see Davis Drive caught in limbo,” Mr. Taylor said.

The bus line would help free up congestion choking Davis for decades, Newmarket Mayor Tony Van Bynen said, adding Southlake hospital’s new cancer centre will bring even more vehicles to town.

Expropriations are also underway along Hwy. 7 East, so construction can begin this fall. Those lanes were set to open in 2013. Further phases, extending north along Yonge Street to Richmond Hill and through Newmarket and west along Hwy. 7 to Vaughan, were set for 2014 to 2015 openings.

Even further down the road were other Viva segments and plans to extend TTC’s light rail transit on Don Mills road and Jane Street into York Region.

It was almost exactly a year ago Premier Dalton McGuinty came to York celebrating $1.4 billion for Viva, fully funding the construction of the median lanes that allow buses to operate out of mixed traffic.

The premier was following through on the promise of the $11.5 billion Move Ontario 2020 plan unveiled during the 2007 election campaign. He hoped the federal government would step up with money, but that never happened and the original funds for transit projects across the GTA are almost entirely dispersed.

Now, the government is trying to hold off spending the more than one-third of funding already spoken for.

While Viva’s future is up in the air, things are surely more bleak for the unfunded Yonge subway extension, despite strong regional lobbying for the needed $3 billion.
It’s “basically dead”, Thornhill Conservative MPP Peter Shurman said of Move Ontario, but he and other local politicians formed a working group with residents to lobby for the subway and they are kicking around alternate funding ideas.

“Gridlock costs a fortune” in terms of money and quality of life for York residents, Mr. Shurman said.

Vaughan’s Spadina subway is unaffected but Toronto’s plans to construct LRT along Finch Avenue and Eglinton Avenue are also pushed back.

“It makes absolutely no economic sense, it makes no sense from a social policy perspective,” Toronto Mayor David Miller told reporters, describing the decision as “disgraceful” and “thick”.

Both Mr. Miller and the Toronto Board of Trade slammed the move as shortsighted given its job-creation potential.

“This is not a good day for regional transit,” board president and chief executive officer Carol Wilding said.

“Our infrastructure deficit has become the casualty of a fiscal deficit with shorter-term priorities sacrificing the fundamentals of long-term economic growth.”
The transit delays were one of several belt-tightening measures announced by Mr. Duncan, including a freeze on provincial salaries.

“Public servants make a valuable contribution to the health and well-being of this province. They are an important part of our well-educated workforce. That is why we will not propose mandatory days off. That is why we will honour existing collective agreements.”

About 700,000 unionized employees will not see a freeze, at least until their contracts come due. That means it’s business as usual for the unions while other Ontarians are busy making ends meet, Mr. Shurman said.

Mr. Duncan also touted previously announced programs, such as plans to spend $63.5 million on daycare, the introduction of full-day kindergarten in September and the shift to the HST in June.

The harmonized tax is expected bring $1.2 billion to the provincial treasury next year.

Storey from:

http://www.yorkregion.com/news/local/article/657189--transit-future-woes

For more information on the VIVANEXT Project and how it's planned to effect Davis Drive, click here

Hot Topic: Lots of Listings

President's Message:

March 16, 2010 -- The Toronto Real Estate Board (TREB) reported a strong result for existing home sales and average selling price in February. Last month, 7,291 transactions were reported through the Multiple Listing Service® (MLS®) within the TREB market area, representing a 77 per cent increase over the same month last year. The average price for these transactions was $431,509 – up 19 per cent compared to February 2009. The annual rates of growth reported for sales and average price were due to both increased demand for ownership housing driven by strengthening consumer confidence and the base year effect, which involves a comparison of economic recovery this year to a period of economic decline last year. While strong growth in existing home sales and average price was forecast to be strong in the first half of 2010, the big story last month was listings. New listings increased by almost 25 per cent compared to February 2009. After adjusting for the season and annualizing this figure, we found that new listings climbed back to levels not seen since the fall of 2008.

“Existing home owners have started to react positively to the strengthening market conditions we have seen since the half-way point of 2009,” said Jason Mercer, TREB’s Senior Manager of Market Analysis. “An increasing number of home owners have become confident that they will be able to list their home and receive offers in line with their asking price within a reasonable time period.”

In my experience, it has always been important to strike a balance between sales and listings in the market place. When the number of buyers increases rapidly relative to the supply of listings, like we saw in the second half of 2009, it becomes more difficult for would-be home buyers to find a home that meets their needs. These tight market conditions have resulted in strong year-over-year price increases. As the supply of listings increases moving forward, the annual rate of price growth will edge lower.

“It is important that home prices grow at a sustainable pace in the long run. The rate of price growth will often fluctuate quite a bit over a short period of time. The past twelve months has been a good example, with price declines this time last year improving to the current situation of double-digit rates of growth,” explained Mercer. “Over the long term we want to see home prices growing in line with broader economic indicators like GDP and disposable income. With more listings coming on stream this year, we will see sustainable rates of price growth.”

It is clear to me that the housing market in Toronto is performing as it should. Demand for ownership housing improved as interest rates declined and consumer confidence in economic recovery rebounded. Average home price growth picked up as market conditions tightened. In response to increased sales and average price, we are seeing an increasing number of new listings, which will result in more balanced market conditions associated with sustainable long-term price growth. I look forward to discussing GTA housing market trends in further detail with you next month.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

HST and how is will effect the Real Etstae Market

HST Transition Rules

The provincial government has provided rules/guidance on how it will transition to the implementation of the proposed Harmonized Sales Tax.

Background

The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).

- The HST is NOT YET IN EFFECT. The HST will come into effect beginning on July 1, 2010; however, note transition rules below.
- HST will not apply on the purchase price of re-sale homes.
- HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
- HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing

Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules

Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.


More Detail

Additional detail on the transition rules is available at the provincial government web site here or by calling the provincial government enquiry line at 1-800-337-7222.

Careful renos can increase home value

President's Message:

The Greater Toronto Area’s spring real estate market is just weeks away and many analysts anticipate that it will be a busy one.

It is expected that the number of properties available for sale will increase as homeowners react favourably to recent months’ activity. It’s also likely that the market will have more homebuyers, prompted to make a purchase before the added costs of the Harmonized Sales Tax take effect on July 1st.

If you’re planning on making a foray into the market this year, now could be the time to undertake improvements, which if carefully planned, can increase the value of your home considerably.

Most of us know that kitchens, bathrooms and a fresh coat of paint inside and out, offer the best return on investment. According to the Appraisal Institute of Canada, you can expect to get back 75 to 100 per cent of what you put into kitchens and bathrooms. Painting can return 50 to 100 per cent of your investment.

While these are typically low risk investments, a number of factors can influence the gains you achieve with other types of renovations. Location is one such consideration. The completion of a basement recreation room for example, can generally return 50 to 75 per cent of expenses, depending on the preferences of future buyers in your area. In a predominantly seniors community its value could be considerably limited.

It’s also important to consider your home’s most crucial needs. Window and door replacement may offer a return of 50 to 75 per cent, but if your existing units are broken, this home improvement should take priority on your project list. Where glaring needs are concerned, the value associated with your home’s overall impression outweighs specific project returns.

When deciding whether to proceed with functional renovations though, it’s also important to consider that significant government rebates are available for many energy efficiency improvements.

There are some improvements that we undertake simply for our own enjoyment, like a swimming pool, from which you can get back up to 40 per cent of your investment or landscaping, which is likely to offer a 25 to 50 per cent return. Despite the limited gains they may offer individually, these types of improvements can also make an important contribution to your property’s overall image.

Consider as well that not all of your renovations need to be sizable. Even minor improvements like new light fixtures, cabinet hardware or faucets can give your home a contemporary look.

For more information visit the Toronto Real Estate Board’s consumer website www.TorontoRealEstateBoard.com to find a REALTOR® who can advise you on wise improvements for your home.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

For more information on Estate Home Sales Solutions, Click here

February Market Graphs - GTA

Simple Steps to Energy Efficiency

February 26, 2010 -- When it comes to character, you just can’t beat the charm of an older home. Newly constructed homes however, come with their own unique assets, one of the most noteworthy of which is energy efficiency.

From the roof to the foundation, a number of innovative building practices often go into constructing today’s greenest homes.

Roof shingles for example, are now available in recycled materials. Environmentally friendly spray foam insulation, which can help prevent dampness, keep out pollutants and contribute to structural strength, is even partially made with recycled materials.

Roofs, walls and floors can be insulated as well with special structural panels that consist of two layers of board with insulating foam in between them. The forms that are used to mould a home’s poured concrete foundation can now also be found with insulating ability, and barriers that prevent dampness from rising into the foundation can be used at this stage of construction as well. Even exterior cladding is now insulated to offer greater energy efficiency.

If you prefer an older home though, there are many simple ways to make it more energy efficient and environmentally friendly.

Start with an Energy Star programmable thermostat that will save on heating and cooling costs when you’re not home. You can take this approach a step further by investing in a new high efficiency furnace or air conditioner. Adding insulation to the attic of your home will offer reduced energy costs for years to come as well.

A tank-less water heater will also save on energy costs by providing only the amount of heated water that you need rather than maintaining it in a cylinder.

Even making minor changes can have an impact, like choosing energy efficient light bulbs - Compact Fluorescent Lamps (CFLs) are good and Light Emitting Diodes (LEDs) are even better.

If you’re planning to make cosmetic changes to your home you can do your part for the environment by choosing wood flooring, and even carpet, made with recycled content. Look for low VOC paints and stains as well, which reduce the number of unstable, carbon-containing compounds that enter the air and react with other elements.

In the bathroom, you can keep more money in your pocket by installing low-flow faucets, showerheads and toilets.

Replacing old windows with low-E argon-filled units that have the Energy Star symbol can make a dramatic difference to your home’s energy efficiency as well.

Changing your old appliances with new Energy Star machines is also a great way to reduce energy consumption while enhancing the overall appeal of your home.

Beyond enjoying the aesthetics, cost savings and fulfillment associated with helping the environment, you can also consider getting an energy audit to take full advantage of a number of government rebates for energy-saving home improvements. Please visit www.TorontoRealEstateBoard.com to learn more about them.

Regardless of the approach you choose, remember that nothing can substitute for good-old fashioned conservation. Remember that the energy you save today may well be the energy that is needed tomorrow.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 29,000 REALTORS® in the Greater Toronto Area.

Tom Lebour is President of the Toronto Real Estate Board, a professional association that represents 28,000 REALTORS® in the Greater Toronto Area.

Department of Finance Mortgage Measures

The Honorable Jim Flaherty, Minister of Finance, today announced a number of measured steps to support the long-term stability of Canada's housing market and continue to encourage home ownership for Canadians.

"Canada's housing market is healthy, stable and supported by our country's solid economic fundamentals," said Minister Flaherty. "However, a key lesson of the global financial crisis is that early policy action can help prevent negative trends from developing."

The Government will therefore adjust the rules for government-backed insured mortgages as follows:

QUALIFYING AT A FIVE-YEAR RATE

Current interest rates are at record low levels, which has improved the affordability of housing for Canadians. It is important that Canadians borrow prudently and are able to manage their debt loads when interest rates rise.

Lender and mortgage insurers look at two key ratios when assessing the ability of a borrower to make payments on a mortgage loan:

Gross Debt Service (GDS) ratio—the ratio of the carrying costs of the home, including the mortgage payment, taxes and heating costs, to the borrower's income.
Total Debt Service (TDS) ratio—the ratio of the carrying costs of the home and all other debt payments to the borrower's total income.
Currently, the interest rate used to determine the mortgage payment for these calculations is either the rate fixed for the term of the mortgage or, in the case of a variable-rate mortgage and mortgages with terms of less than three years, the greater of the contract rate and the prevailing three-year fixed rate.

The adjustments to the mortgage framework will require mortgage insurers to ensure that borrowers qualify for their mortgage amount using the greater of the contract rate or the interest rate for a five-year fixed rate mortgage when calculating the GDS and TDS ratios.

This measure is intended to protect Canadians by providing them with additional flexibility to support mortgage payments at higher interest rates in the future.

LIMIT THE MAXIMUM REFINANCING AMOUNT TO 90 PER CENT OF THE LOAN-TO-VALUE RATIO

Borrowers seeking financial flexibility can currently refinance their mortgage and increase the amount they are borrowing on the security of their home up to a limit of 95 per cent of the value of the property. This type of refinancing lowers the borrower's equity in their home. The adjustments today will lower the maximum amount of the mortgage loan in a refinancing of a government-backed high ratio mortgage loan to 90 per cent of the value of the property, consistent with the principle that home ownership is a tool for savings.

DISCOURAGING SPECULATION BY REQUIRING A MINIMUM DOWN PAYMENT OF 20 PER CENT FOR NON-OWNER-OCCUPIED PROPERTIES

This measure will require a minimum down payment of 20 per cent for government-backed mortgage insurance on non-owner-occupied properties purchased for speculation. Currently, borrowers may purchase a residential property with a 5 per cent down payment. Today's change will require a 20 per cent down payment for small (i.e., 1- to 4-unit) non-owner-occupied residential rental properties. Borrowers purchasing owner-occupied residential properties which also include some rental units (e.g., borrowers purchasing a duplex to live in one unit and rent out the other) will still be able to access government-backed mortgage insurance with a 5 per cent down payment.

Moving to the new framework:

These adjustments to the mortgage insurance guarantee framework are intended to come into force on April 19, 2010. Exceptions would be allowed after April 19 where they are needed to satisfy a binding purchase and sale, financing, or refinancing agreement entered into before April 19, 2010.

"There's no clear evidence of a housing bubble, but we're taking proactive, prudent and cautious steps today to help prevent one. Our Government is acting to help prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it," said Minister Flaherty. "If some lenders aren't willing to act themselves, we will act. These measures demonstrate the Government is committed to taking action when necessary to support the long-term stability of a sector that is so vital to our economy and the financial well-being of Canadian families." The Honorable Jim Flaherty, Minister of Finance

My Take:

Qualifying at a Five Year rate: this is good for the stability of our Real Estate Market, but will discourage rapid growth in prices as those looking to enter into the market will find it a little more difficult to qualify. Those who can afford to buy will be the ones buying.

Refinancing Limit of 90% Loan-to-Value(LTV): I also see this as positive. In the past few years I have seen a number of people refinance to the point that they then owed more than their home is worth. Thus, in most cases, leading to forclosure by the lender. It is important for people to have equity in their home and by lowering the refinancing limit from 95% LTV to 90% LTV it will protect a lot of people from being forclosed on and maintaining equity on thier home.

20% minimum down payment for non-owner occuppied: I'm a little torn with this one as I have a goal of owning many rental investment properties, so this make it a little harder to grow a large portfolio since I will be required to have more money into the property. I see this really as a way for the government to protect their insurance premiums they recieve from CMHC. With more money down by speculators, and investors, it lessens the probabblility of the lenders who are financing these types of deals from having to make insurance claims when there is a deficit from what is owed and what a property is worth... I can see this part changing down the road to say 15% down required.