Changes in population from migration and immigration:
A total of 20,452 people were added to the province’s population as a result of net inter-provincial migration and international immigration in the first quarter of 2010. As has been the case in every quarter since the beginning of 2003, positive international immigration once again more than offset a net loss of people to other provinces.
Some 2,069 more people moved away from Ontario than moved to the province in the first quarter. Even so, this was a considerable improvement from the loss of more 5,000 people in the same period last year.
International immigration added 22,521 people to the province’s population in the first quarter of 2010, up 15 per cent from the same period in 2009.
Changes in population from movement within Canada:
Some 16,761 people moved to Ontario from elsewhere in Canada in the first quarter of 2010, edging down three-tenths of one per cent from the previous first quarter. Small increases in migration from British Columbia, Alberta, and Nova Scotia helped offset a decline in people coming from Quebec.
The number of people leaving for other provinces dropped 14 per cent from the first quarter of 2009 to 18,830. There was a significant decrease in the number of people leaving for Alberta, with over 2,500 fewer people moving to that province from Ontario.
The result was a net loss of 2,069 people from net inter-provincial migration. This is less than half the loss reported in the first quarter last year.
Changes in population from immigration:
International immigration added 22,521 people in the first quarter of 2010, up 15 per cent from the previous first quarter.
I wanted to take a moment to introduce you to a group that The Politis Brienza Team have been working with for the past several years on the real estate development front- Marchant Securities Inc. and Greybrook Capital. We have partnered with Greybrook for the past several years both personally investing our own capital as well as introducing our investment clients to these opportunities. We have been extremely successful both personally and professionally to date, in addition, our partnership with Greybrook has allowed us to provide our clients with tremendous value add services and investment opportunities not available anywhere else. Please take a moment and read the information below as I feel it would be of great interest to you.
Marchant Securities Inc. (MSI), a registrant of the Ontario Securities Commission (OSC) since 1975, is pleased to announce an ongoing joint venture partnership with Murray and Gary Goldman of Stafford Homes (www.staffordhomes.ca), part of the Goldman Group of companies, one of Toronto’s most successful residential developers for more than 50 years. In partnership with Greybrook Capital, MSI provides investment vehicles that allow individual investors the opportunity to participate in the value creation activities of Stafford Homes. Investments of this type are typically referred to as Real Estate Merchant banking and are dominated by financial institutions and pension funds. Individuals are usually excluded from these types of investments due to the amount of capital required to qualify for such an investment.
Marchant Securities Inc. is now offering individuals the unique opportunity to invest directly with a best in class residential developer on a 52 unit freehold townhomes development located in the Victoria Village area of Toronto adjacent to Eglinton and Victoria Park.
The Investment:
· The Greybrook Keystone Limited Partnership will joint venture with Stafford Homes in their ongoing development of a 52 unit townhome project comprised of 10 semi-detached and 42 free-hold townhomes located at 25 & 27 Hobson St.
- The development lands are fully zoned for this purpose
- Term of the investment is estimated to be 24 months
- Investors will receive a 9% preferred return on capital, payment of which will be deferred until the project is completed
- Pro forma projections anticipate a potential annualized return of 22%
- Stafford will conduct the pre-sale program, all construction related duties and provide all guarantees required by construction lender(s)
- Investor liability is limited to the amount of the investment
- Investor equity will sit in priority position
- Minimum Investment $150,000
- Total investment: $2,079,000
In 2006, Stafford Homes identified two parcels of land on Hobson Street which, while at the time were zoned industrial, were prime for residential redevelopment. Stafford purchased these two parcels measuring 2.91 acres and for the last three years has been committed to taking them through the costly and timely municipal zoning process. Stafford is currently finishing the construction of the sales center located on 1400 O’Connor Dr., which is projected to be up and running by July 30th 2010. With required zoning now in effect, we are pleased to introduce to you this joint venture investment with Stafford Homes. Stafford Homes will be responsible for the performance of all aspects of the development process including but not limited to the pre-sale program, construction financing, construction, unit closings and construction loan discharge.
Marchant Securities is offering real estate professionals like yourselves the opportunity to bring unique, high quality real estate opportunities to your investors- helping you differentiate yourself from the competition. MSI will pay a referral fee of 6% of the total investment directly to referring brokers. We would be happy to sit and discuss the details of the opportunity with yourselves or any interested parties at your convenience.
Marchant Securities Inc:
· With over four decades of experience, the principals of Marchant Securities Inc. have enabled Private Investors to participate in transactions identical to those that have typically been dominated by Institutional Investors
- We have developed expertise in real estate investments that range from equity investments in commercial and residential real estate and development to mezzanine financing and bridge lending
- The group has been involved in the creation, development, construction, management and syndication of over 36 projects totaling over 7,000 residential units. Approximately $450 million in equity has been deployed creating an aggregate value of approximately $1.15 billion at the respective project completion dates
June 16, 2010
Madhavi Acharya-Tom Yew
Business Reporter
Home sales and prices fell in May as would-be buyers felt the pinch of changing regulations and higher interest rates.The decline is a “departure from the normal seasonal pattern,” the Canadian Real Estate Association noted in its release Wednesday.
It’s likely that changes to mortgage regulations and rising interest rates pulled forward a number of sales into April that would have otherwise taken place at a later date. “May was the first full month in which sales activity was affected by these changes,” CREA president Georges Pahud said. “An accompanying decline in new listings and housing starts means these changes are also affecting the supply side, which will keep the market balanced and Canadian home prices stable.”
Across Canada, sales fell by 9.5 per cent in May compared to near-record levels of activity in April. While activity declined in more than 70 per cent of local markets, the lower national figure resulted largely from fewer sales in Toronto, Vancouver, and Ottawa, CREA said.
The average resale price fell 1.27 per cent to $340,566 from the record $344,968 reached in May. Still, the national average price of homes rose 8.5 per cent in May from a year ago, though this is a smaller increase compared to the past nine months.
The number of new listing also fell four per cent in May, compared to the previous month – the first decline in eight months and another sign of a cooling Canadian real estate market. “Supply and demand has become more balanced in a number of major markets,” said Gregory Klump, chief economist for the association. The amount of time it takes to sell a home is expected to rise in the coming months, he added. “The outlooks for the Canadian economy, employment, and mortgage market trends remain upbeat, so supply and demand will remain balanced on a national basis. Canada will avoid a U.S.-style home price correction,” Klump said.
Ali=> So, Is this a real decline? Three levels of government trying to get something out of the booming Real Estate market for themselves. Municipalities, specially the one in Toronto with higher land transfer tax and property tax. Province with all kinds of HST, Energy Efficiency Audit and so on, and the Federal Government with all sorts of monetary and financial tools.
I am thinking that Canada has been noticed by the world as a good destination for immigration in the last may be two decades, and recently investors have an eye on Canada due to economic stability specially after Global Financial melt-down. Canadian banks had stayed out of trouble, and it was not because of the policies of existing government, but governments long before this.
Most of the new immigrants end-up in the golden horse shoe area, and mostly GTA. More and more immigrants are coming with lots of money to invest in this country which is very rich with enormous natural resources, so, who can tell me that the prices that are lower than anywhere else in the industrial world, would not go up again and fast soon?
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December 16, 2009 -- 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 announced that it intends 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 provincial government has indicated that it intends to bring the HST 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.
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http://www.theglobeandmail.com/report-on-business/flaherty-warns-on-mortgage-rules/article1407223/
OTTAWA -- The federal government is ready to clamp down further on mortgage rules if the boom in the Canadian housing market turns into a bubble, says Finance Minister Jim Flaherty.
In an exclusive interview with Canwest News Service and Global National, Mr. Flaherty said the government is closely monitoring the red-hot housing market for signs that it is reaching "irrational" levels.
"The reality is we have low mortgage rates . . . so we can expect some upward pressure on housing," he said. "That's OK, as long as it doesn't become a bubble. We're watching that."
If necessary, the government is prepared to further tighten the conditions under which the Canada Mortgage Housing Corporation insures mortgages, the finance minister said.
In July 2008, amid the fallout from the subprime mortgage crisis in the United States, the Finance Department announced that CMHC would shorten the maximum amortization period that it will accept to 35 years from 40, as well as require a down payment of at least 5% of the value of the home. The new rules, which came into effect in October 2008, effectively made it more difficult for prospective homeowners to receive government-backed mortgages.
"If we have to, we'll do what we did last year and limit the rate of amortization further than we already did, and require higher down payments," said Mr. Flaherty.
His remarks come as some leading private-sector economists warn that the housing market might be getting ahead of itself amid a relatively modest recovery. In a recent report, Bay Street economist David Rosenberg estimated that housing prices are overvalued by as much as 15 to 35%. This week, the Canadian Real Estate Association reported that sales of existing homes spiked 73% year-over-year in November, while the national average sale price rose 19%.
"If being 15% to 35% overvalued isn't a bubble, then it's the next closest thing," said Mr. Rosenberg, chief economist for investment firm Gluskin Sheff.
In recent weeks, Bank of Canada governor Mark Carney has expressed concern about the amount of debt that Canadian households have been racking up since the central bank cut its benchmark lending rate to near zero. Mr. Flaherty also wants to remind Canadians that the easy money won't last forever.
"Interest rates are at historic lows. They are naturally going to go up," said Mr. Flaherty. "People have to make sure that the mortgage on their home that they've put on today will be affordable at higher interest rates in the future."
The discussion of a potential housing bubble shows how much the economic climate has improved since the end of 2008, when it was still unclear how the world would pull out of the global financial crisis.
Looking back, Mr. Flaherty said the turning point was a meeting of the G7 finance ministers and central bankers in October 2008, where, after "a lot of finger-pointing by the Europeans at the Americans," they agreed to backstop the world's financial system.
"We were in a situation, where the markets might not open on Monday, where banks were failing in Germany, in the United Kingdom, in the United States," the finance minister recalled. "It was quite scary,"
In January's federal budget, Mr. Flaherty announced the government would pump $61-billion in public funds into the economy over two years, the biggest stimulus package in Canadian history.
Mr. Flaherty once again predicted that next year's budget will consist largely of the second year of the stimulus plan.
"Some of the stimulus items can be tweaked, certainly, but Canadians ought not to expect any major new spending programs," he said. "It may be kind of a boring budget, but boring is just fine in 2010."
The Conservatives have repeatedly promised not to raise taxes or cut transfers to the provinces or individuals to eliminate the deficit, which is projected to hit $56-billion this fiscal year. Instead, the government plans to rely on economic growth and possibly spending restraint to make up the shortfall.
In a recent editorial, however, two former senior Finance officials, C. Scott Clark and Peter Devries, wrote that "any credible budget will have to include tax increases."
Mr. Flaherty disagrees. "The easiest thing in the world to do is raise taxes. What it does mean is you don't have to have discipline in government spending. And Canadians know that there's wasted government spending -- some degree of it."
More often I hear people say that they have a good investment in their homes and they do thier best to get rid of the mortgage and have it out-right as their beloved homes.
Ok to me, my home is a piggy-bank. Like a piggy-bank, I put in it little by little everymonth. And exactly like a piggy-bank, if one day I need all the money I saved in it, I would have no home anymore, I have to break the piggy-bank to access the whole money. Then with some of it buy another piggy-bank, may be.
So, while, my home is not a real investment, why do I have to own it out-right. Why shouldn't I take money out of my home, while I have the nergy to work and this time invest it in a place that brings me some positive cashflow? Such as another piece of real estate?
Just a thought! 
June 10, 2009 -TREB- The provincial government has announced that it intends 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 provincial government has indicated that it intends to bring the HST into effect beginning on July 1, 2010. Details regarding any implementation transition rules have not been provided by the provincial government.
Background
• HST will not apply on the purchase price of re-sale homes.
• With regard to newly constructed homes, the provincial government has indicated that it will provide a rebate to ensure that, on average, new homes under $400,000 would not be subject to an additional tax burden. Homes priced between $400,000 and $500,000 would be eligible for a portion of the rebate (detail not yet provided by government), and homes priced above $500,000 would be subject to the full HST.
• HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.
Additional information will be provided as it becomes available.
For first-time buyers with secure employment, the housing market may look rather more appealing now than it has in recent years, when they struggled with affordability.
"We know for Toronto, and for Ontario as a whole, there's been a pretty dramatic shift since the fourth quarter of last year, into a buyers' market," says Pascal Gauthier, economist at TD Economics. "Looking ahead to the next, say, 12 to 18 months, it is very difficult to believe that that is going to turn around, just given the economic backdrop."
While a continued buyers' market is good news for them, house hunters shouldn't expect to see a dramatic drop in prices.
"In Toronto, we're not seeing huge price declines," says Laurin Jeffrey, an agent with Century 21 Regal Realty, "but buyers are finding a lot more selection."
While last year, clients would find many properties had been sold before they had a chance to view them, "Now we're going through a list of 50, taking 20 that are good and getting out to see 10 top ones."
Mortgage broker Maria Dominelli advises clients to look very closely at their finances and lifestyle before stepping on to the property ladder.
"The first thing we want to determine is if home ownership is really right for the individual. They've got to look at coming up with the down payment ... [and] maintaining the home. It requires not only money but a commitment in time," says Ms. Dominelli, who works with Invis. "Make sure you do a check on that reality ... so you know the disadvantages and advantages of buying."
Mr. Jeffrey also urges clients to think about potential lifestyle changes that come with home ownership.
Helen Morris, National Post Published: Friday, April 03, 2009
"If all of a sudden you're now restricted to a weekend in Montreal and a couple of lattes, when you're used to having dinner out [and vacationing in] Cuba, well, you're not going to be very happy," says Mr. Jeffrey.
If first-time buyers decide they are psychologically ready to take the plunge, there are some new government policies that can help with the finances.
Under the recent federal budget, first-time buyers can qualify for a $750 tax credit to help with closing costs. In addition, they can now withdraw up to $25,000 from their RRSPs under the Home Buyers Plan to help with a down payment, up from the previous $20,000.
First-time buyers in Toronto buying properties of $400,000 or less will receive a maximum rebate of $3,725 on land transfer tax.
Ms. Dominelli says it is always crucial for purchasers to have a back-up financial plan, but especially now in these testing economic times.
"One of the strategies is for people to actually have their mortgages registered for a longer amortization [for lower payments on paper] but to actually make their payments as though they are in a shorter amortization," says Ms. Dominelli. "While you are working, you can afford it. If the sky falls in and you lose your job and need to bide some time, you can ask the lender to change the payments to the lower total again without having to go back and incur legal fees."
Mr. Jeffrey believes in the value of the real estate investment. If your job prospects are good, he says, "Relax, take a breath, be smart. If you don't need that big flat screen TV, don't buy it. But if you need a place to live, prices are down a bit, mortgage rates are stupidly low. It's not a bad time [to buy]."
The program will also create work for contractors. It pays to do your homework before you hire a contractor.
Make sure the contractor is licensed: it is your right to ask a prospective contractor to produce their license. If the contractor is reluctant to show it, you should be reluctant to hire him/her.
Get references: any good contractor will gladly supply you with a list of references — and pictures showing examples of work that they have done. That list should include up-to-date contact information including names, addresses, phone numbers, and details about the jobs done.
Get several quotes: they should be in writing and should spell out exactly the work you want done and how long it should take. The lowest quote may not necessarily be the best. If somebody comes in with a price far below the others, it could be due to cutting corners.
Make sure the contractor is insured: ask to see their certificate of insurance. Your contractor should have workers compensation and third-party liability insurance for all the people on the job and damage they may cause ($2 million is standard). If they don't, you could be on the hook if there's an accident.
Hello Everyone,
Did you know that you can receive a tax credit for renovations to your home under the Home Renovation Tax Credit in the 2009 Federal budget? It starts on expenditures over $1,000 and does not apply to anything over $10,000! On a $10,000 renovation project you can get $1,350 back or 13.5%!!
After all, with or without the tax credit, home renovations are expensive and hiring a good contractor is critical.
Below is an article from CBC news offering more insight on this valuable program.
The home Reno tax credit: what you can do
Last Updated: Thursday, January 29, 2009 | 3:04 PM ET
This was going to be a year of hunkering down and putting off fixing up the old homestead, what with economic turmoil gripping not just the country but the entire world.
But since the federal government revealed the Home Renovation Tax Credit in its budget on Jan. 27, 2009, you're starting to think that maybe you might be able to manage a couple of small jobs. After all, if you keep the renovation budget to $10,000, you'll get $1,350 back — a saving of 13.5 per cent.
The tax credit kicks in on expenditures over $1,000, and you won't get any tax relief for what you spend over $10,000. So your tax savings on a $20,000 job will still be $1,350 — or a saving of 6.75 per cent.
The variety of expenditures that qualify for the tax credit is wide. Among them:
- Renovating your kitchen, bathroom or basement.
- Painting your house.
- Installing new carpeting or flooring.
- Replacing your heating/air conditioning system.
- Upgrading the insulation in your home. Resurfacing your driveway or replacing your lawn with new sod.
Just about any job that improves your home or cottage — or any combination of jobs that improves either or both — qualifies for the credit. Buying furniture, a big-screen TV, cleaning your carpets, buying tools or performing regular maintenance on your home won't get you the tax credit, however.
The Home Renovation Tax Credit can be coupled with other government programs that put money back into your pocket when you renovate your home. For instance, making your home more energy-efficient can qualify you for grants of up to $5,000 under the ecoENERGY Retrofit Program. You will still be able to claim the Home Renovation Tax Credit. The same applies for eligible expenditures that are claimed under the Medical Expense Tax Credit.
While doing the work yourself will give you the most bang for your buck, jobs that you pay a contractor to do also qualify. Expenses such as labour, building permits, equipment rentals, professional services and incidentals are also eligible.
Municipalities regulate building permits, so you should check with your local officials before you begin your job. If your renovation involves structural changes to your home or electrical work, you will most likely need a permit.
One of the major goals of the program, which is expected to cost the government $3 billion, is to stimulate local economies. Most of the material you buy to fix up your home is likely made in Canada and sold at your local hardware store (although it's as likely to be a U.S.-owned big-box store as a Canadian-owned big-box outlet).
One tax credit per family
Unlike the Home Buyers' Plan, where each spouse can withdraw up to $25,000 from their RRSP to put toward a down payment on a first house, the Home Renovation Tax Credit is limited to one credit per family.
While you can make claims for work done at more than one residence you own, the maximum any family can get back is $1,350. But a family can share the credit.
You'll be able to claim the credit on your return for the 2009 tax year. All material has to be purchased and work has to be finished no later than Feb. 1, 2010.
Bank of Canada reduced its target overnight rate by 50 basis and the major banks followed the suit and reduced their prime rates by 0.5%. This move made it easier for those who can afford a house to move ahead and buy.
With the existing Buyer's market, and reduction of the Canadian Dollar, and cheaper borrowing cost, there are lots of opportunities out there to explore.
OK, we all now that US sub-prime made the financial institute all over the world to melt down. The Canadian Banks were among those who had impacted by this melt down the less.
The economic slow-down, made our CA$ to lose some ground to US$. As our currency is heavily supported with pour vast natural resources. But this is not going to last so long, we are going to experience a reduction of Canadian $ for a couple of more months before it starts its move toward the parity. So, at this rate or less, the afford-ability of Canadian Dollar, and stability of Housing and Money market in Canada, will help investor to position themselves in a right place for the coming Economic Expansion in a year or two.
The stock market is too liquid, and the expectation and feelings of the market in any second of the day will change the direction of Stock market.
The spectators in Real Estate market are there for a longer period and they know that they have to keep it for a longer time than day-traders in Stock Market.
So, by having a stable market and stable financial market, and the Interest Rates at its lowest, it is time to Buy-and-Hold in Real Estate.
We have a 250,000 new immigrant every year which most of them come with lots of money and about 40% of them will end-up in Greater Toronto Area.
If an investor from abroad, brings in money and exchange it, he receives a 20% discount right now, the market is almost 10%-15% down, and even at its pick it was much lower than any other major cities in the world, specially in Toronto. Then we have a Buyer market, which allows for another 5%-15% negotiation slack.
In 2-3 years, the prices will back on track of 6-10% increase annually, the Canadian Dollar will take back the lost ground to US$. So, why not invest in the 2nd largest country in the world?
It is not funny to see the Canadian government telling us everything is ok when they are going to fastest election period ever, and come back and say everything is ok when they introduced the budget and finally when getting slammed by the opposition parties, close down the parliment and finally wake up and say they need to do something before it is too late.
If Ottawa brings in a stimulus package when the government tables its new budget later in January, accelerated infrastructure spending could be an important component.
While unlikely to affect the residential component of the building trades, the new money could assist the flagging commercial, institutional and industrial construction sector.
That would be true especially if the government embarks on a program to expand universities, hospitals and other public institutions.
Such a strategy would get more people working in Canada's construction sector, which shed 44,000 in December, compared with November.
Who can trust this government?
Companies wanting to conserve cash rather than invest in new structures, along with slumping prospects for homeowners, hammered the residential and non-residential ends of the building sector.
As a result, fewer homes and big structures are getting built across Canada.
Canada Mortgage and Housing Corp. said housing starts — the point at which shovels go into the ground — were basically flat in January, compared with December, once adjusted for seasonal variations.
If you grossed up January's starts for 12 months, there were 177,300 new homes begun in the month, a marginal decline from 178,000 one month earlier.
Preliminary numbers also showed that Canadian builders started seven per cent fewer homes in 2008 than they did in 2007.
In the short term, the fewer inventory, may not translate to anything but in a mid to long run, it will increase the demand for existing and resale housing and will increase the prices again and then new homes projects will be again feasible.