Abridged Tan•gazine February 2013

Page 1

Peng

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February 2013 Volume 01 Issue 01

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6949 Financial Drive, Mississauga ON L5N 8J4

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SALES REPRESENTATIVE & TEAM MEMBER

BROKER & TEAM LEADER

LARISSA SARAKAEVA

SALES REPRESENTATIVE & TEAM MEMBER


Tan.gazine NEWS

Housing Market Headed For Mild Correction, Royal LePage Warns David Paddon, Canadian Press January 08, 2013

The latest Royal LePage report on Canadian realestate shows average housing prices were up between 2% and 4% in the fourth quarter of 2012 compared with the same time last year. However, the same survey shows average prices for the three main categories of housing were down from the third quarter of 2012 — a period that included new mortgage rules that have discouraged many first-time buyers. The quarterly market update by the Torontobased real estate marketing firm forecasts a brief, mild dip in sales volume in the first half of this year, but not a major downturn. It says average prices for Canadian residential real-estate will rise a further 1% by the end of 2013, as some owners opt to delay selling their property until conditions improve. “Our sturdy domestic economy and encouraging employment trends have emboldened sellers, and some have opted to let market conditions adjust before listing,” said Phil Soper, Royal LePage’s president and chief executive. “Simply put, fewer home owners listed their properties in the second half of the year, which kept inventory levels lower, and supported home values.” The Toronto-based real-estate marketing firm notes that there are a wide range of conditions in cities across Canada. It says slower sales and a flattening of home prices in Vancouver and Toronto — Canada’s two largest and most-expensive real-estate markets — will have a significant impact and drag down the national averages this year. It says some markets, particularly in Alberta and Saskatchewan where the resource-oriented

economies have been vibrant, are poised for significant growth in 2013. The Royal LePage quarterly House Price Survey looks at three categories of housing — detached bungalows, standard two-storey and standard condominiums — in 16 local markets and calculates national averages. The latest survey, based on sales between October and December, showed that national average price for detached bungalows was $356,790 — up 3.6% from a year earlier but down from the thirdquarter average of $377.773. A similar pattern of year-over-year increases but quarter-to-quarter declines were evident in the other national average categories. Many observers have noted that tighter mortgage rules brought in last July have made it more difficult for first-time buyers to borrow money, since they must qualify for a 25-year payback period. That’s down from 30 years. The national average price for two-storey houses was $390,444 in the fourth quarter, up 4% from a year earlier but down from $403,747 in the third quarter. The national average price for condos was $239,374, up 2% from a year earlier but down from $243,607 in the third quarter.


Tan.gazine NEWS

Stopping The municipal land transfer tax

OREA - Ontario Real Estate Association January 14, 2013

Municipalities in Ontario are gearing up to force the province to grant them the authority to charge a municipal land transfer tax (LTT) on home buyers. Currently allowed only in Toronto, this tax may potentially spread to other regions of Ontario. It threatens to increase the cost of home ownership province-wide. According to a recent study by the C.D. Howe Institute, this tax has resulted in a 16 percent drop in the volume of residential home sales in Toronto. It has meant that home buyers pay an average $15,000 up front every time they move, due to the municipal tax over and above the provincial land transfer tax. The spread of this tax to other regions of Ontario will increase the cost of home ownership across the province. As a REALTOR速, this will affect your business. Extending the power to levy the municipal LTT to other municipalities in the province would lower home values by adding thousands of dollars to the cost of residential transactions.

In addition, the municipal LTT would price many low- and middle-income Ontarians out of the real estate market entirely. The Ontario Real Estate Association (OREA) believes the municipal LTT is unfair because it forces a small segment of taxpayers -- home buyers -- to fund municipal services designed to benefit all citizens. OREA is urging the Ontario government to exclude LTT from any legislation that expands municipal taxing authority and to revoke this tax in the city of Toronto. For more information on this and other lobby issues at OREA, visit the Government Relations section of www.orea.com. I encourage each and everyone who have read this article to contact your local politician representatives to express your disagreement and displeasure over this pending issue which will ultimately affects every homeowner, now and in the future. Stand up; Speak up for your rights!

Mississauga Civic Centre. Photograph: Ian Muttoo


Tan.gazine NEWS

Home Sales Pick Up Steam Toronto and Vancouver In January Susan Pigg, Toronto Star February 15, 2013

Home sales picked up steam in Canada’s two mostwatched cities in January, outpacing the rest of the country, according to figures from the Canadian Real Estate Association. Toronto saw month-over-month sales increases of 5.6 per cent, followed by Vancouver at 4.7 per cent, both markets that have seen considerable softening since tighter mortgage lending rules took effect last July. Prices held steady in Toronto in January over December, with the average house price coming in at just over $501,000. Vancouver saw a 3.5 per cent pickup after what had been a softening of prices. The average house in Vancouver sold for $746,585 in January compared to $721,028, according to CREA. “Things are becoming more interesting among local markets, with improving sales in Vancouver and

Toronto likely to come as something of a surprise to some,” said CREA president Wayne Moen in a statement released Friday. Year over year, however, sales were down 4.2 per cent in Toronto over January, 2012 which was an extraordinarily strong winter month for sales last year, partly because of unseasonably warm weather. National home sales were up 1.3 per cent in January from December, the first seasonally adjusted gain in five months, but down 5.2 per cent year-overyear. The notable exception was Calgary where sales soared by 20 per cent year over year. New listings were up in many major housing markets, led by the GTA, said CREA. While price gains slipped for most housing types in many major cities, detached houses still sold for about 4 per cent more, year over year, and even condos held steady with prices up 1.2 per cent.

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indulge in space A prestigious Credit Ridge property

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Family Room

Dining Room

Kitchen area

Right: Perfect food laboratory to master that tough recipe

Above: Restaurant setting with plenty of space to spare


Security Above: State of the art security systems

Right: Lounge setting living room

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Master bedroom Stairway

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6948 Financial Drive, Mississauga, ON L5N 8J4

PENG HOCK K TAN

Broker & Team m Leader

LARISSA SARAKAEVA LARIS Sales Re Representative & Team Member

Toll Free: 1-886-821-3200 2IͤFH Fax: 905-821-8777 KAI MIN

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Sales Representative & Team Member

Size Does Matter

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A beautifully renovated home featuring 2 full suites in basement with separate entrance, 186 ft deep private lot, minutes to major Hwys and amenities. Call Tan now @ 416-669-1748

Located along bustling Queen Street, Brampton, Ontario - Providing Home Audio and Car Audio system services, H[LVWLQJ SURͤWDEOH EXVLQHVV IRU ZHOO over 20 years! Owner will provide training! For detailed information Call Tan now @ 416-669-1748

$985,883

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Desirable Central Location

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Luxury TRIDEL built condo w/clear west view on open balcony! Overlooking city & lake! Blding. ammenities incl. internet lounge, theatre, spa, ELOOLDUGV ͤWQHVV KU FRQFLHUJH more! Close to Sq One, schools, transit & HWY 401/403, Call Tan now @ 416-669-1748

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Cozy Private Corner Unit

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Brand new 4 storey achituarally styled brick and stucco complex located in the Carefree Living At The Crosings! Close to all shopping, walkking distance of everything, Town of Lasalle has over 100 Acres of 3DUNODQG 3OD\JURXQGV 3RRO *ROͤQJ and more! Get in touch with Tan!x

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Located in sought after area. Prop. LQFO QHZO\ ͤQ EVPW ERDVWLQJ DSSUR[ 1500sf w/rec. room, 3 rms & 4pc washroom. Hrd.wood throughout main and 2nd flr, new roofs, furnace, A/C & select windows. Washroom for each rm on 2nd flr! See this property now! Call Tan now @ 416-669-1748

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Tan.gazine NEWS

Homeownership Not Abo Bob Aaron

February 15, 2013

Sometimes, even the experts get it wrong, or maybe not entirely right. In her new book, Money Rules, financial guru Gail Vaz Oxlade says that buying a home is not for everyone. Her No. 1 rule: Renting is not a waste of money. “Home ownership can be a big ol’ pain in the arse,â€? she writes. “There are moments of joy and pride that come with home ownership, but it’s not for everyone.â€? So far so good. Vaz Oxlade then sets out a list of people who should not own a home. In her world view, they are those people who: ‡ +DYHQ¡W FRPSOHWHG D UHDOLVWLF EXGJHW ‡ +DYH D YDULDEOH LQFRPH ‡ :RUN LQ DQ LQGXVWU\ ZKHUH HPSOR\PHQW LV VHDVRQDO or erratic. ‡ 'RQ¡W KDYH WKH WLPH VNLOOV GHVLUH RU FDVH WR PRQH\ with home maintenance. ‡ :LOO ZLSH RXW DOO WKHLU VDYLQJV ZLWK WKH SXUFKDVH ‡ 3HRSOH ZKR PRYH RIWHQ ‡ &DQ¡W DIIRUG WR RZQ LQ DQ DUHD LQ ZKLFK WKH\ ZRXOG like to live. ‡ $UH QRW ILQDQFLDOO\ UHVSRQVLEOH ‡ /RYH EHLQJ DEOH WR ZULWH D FKHTXH IRU UHQW DQG WKHQ not sweat the details. ‡ &DUU\LQJ DQ\ FRQVXPHU GHEW

Over the years, I have represented many thousands of home purchasers and can honestly say that the vast majority have successfully violated one or more of Vaz Oxlade’s rules, and some have even violated most of them. For most of these purchasers, homeownership has been a rewarding experience. /HW¡V ORRN DW WKH QXPEHUV %DVHG RQ 7RURQWR 5HDO (VWDWH %RDUG VWDWLVWLFV DYHUDJH 7RURQWR DUHD KRPH prices rose every year from 1967 ($24,078) to 1989 ($273,698), again in 1994, and from 1996 to 2012. There was a market slump in the early 1990s, but from 1997 to 2012, prices have gone up every year.

Typical prices: ‡ ‡ ‡ ‡ &OHDUO\ WKHQ WKRVH SHRSOH ZKR VDW LW RXW DQG ZDLWHG until they could meet Vaz Oxlade’s criteria have VXIIHUHG ILQDQFLDOO\ 0\ RZQ 1R UXOH LV 'RQ¡W ZDLW and don’t follow Vaz Oxlade’s rules.

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Tan.gazine NEWS

out Crunching Numbers I have many clients who have made more money from real estate in any given year than from their salaries, despite having failed to meet Vaz Oxlade’s criteria. ,Q DQ LQWHUYLHZ ODVW PRQWK RQ WKH &%& UDGLR program Ontario Today, Vaz Oxlade told host .DWKOHHQ 3HWW\ ´:H KDYH ERXJKW WKH EHOLHI WKDW LI you aren’t working towards owning your own home you are an underachieving slug.â€? (So much for empathy.) :KDW VKH PLVVHV DFFRUGLQJ WR 7RURQWR UHDOWRU %DUU\ /HERZ LV WKDW WKHUH DUH WZR W\SHV RI WHQDQWV tenants by choice and tenants by circumstance. /HERZ VD\V WKDW PRVW RI 9D] 2[ODGH¡V FRQFHSWV ZRUN best for tenants by choice. 6RPH UHQWHUV HDVLO\ TXDOLI\ IRU homeownership under Vaz Oxlade’s criteria, but choose to be tenants for many reasons. They may, for example, not want to deal with condo board politics, and would prefer to deal with a single property manager or landlord. Others could pay cash for their homes, but just don’t to be tied down, or have other uses for the funds. The bottom line is that the decision to buy or rent is a very personal one, and for many it has nothing to do with money. For those who have either dipped their toes

into the real estate market, or plunged in over their heads, real estate offers attractive features not found elsewhere, including: ‡ $ SULQFLSDO UHVLGHQFH LV WKH RQO\ &DQDGLDQ investment that remains totally free of capital gains tax. ‡ ´2UGLQDU\ &DQDGLDQVÂľ FDQ PDNH KXJH DPRXQWV RI money investing in their own homes or rental units. ‡ (YHQ D KRPHRZQHU ZKR ORVHV VD\ SHU FHQW RI the value of a home, will still recover the UHPDLQGHU $ WHQDQW JHWV EDFN QRWKLQJ For most people, home ownership is about more than GROODUV DQG EXGJHWV DQG OHDN\ IDXFHWV /HERZ KLW WKH nail on the head when he told me, “Homeownership is about the enjoyment of one’s life, of raising a family and having something that speaks to the world: This is mine!â€?

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