Life in Oakville - by Lindsay Walls

What You Need to Know Before Buying a Home: A Report for First Time Buyers

Tue, 15 Dec 2009 15:33:25 -0800

What a difference a year can make. We started off 2009 with headlines predicting housing market crashes, rapidly declining sale prices and general gloom and doom stories. Now, in December we are seeing speculation of housing bubbles, stories of bidding wars and general speculation about how “hot” the market is. Buying a home is a stressful time, particularly as a first time buyer. Who should you believe? How do you know when it’s the right time to buy? Where do you start to look? Below are my thoughts on what you as a first time buyer should think about when buying your first home.

1. When You Get Into The Real Estate Market is Less Important Than Just Getting In It and Staying In It. In other words, the length of time you plan on staying in your home is more important than when you buy it. If you are like most first time buyers, you are likely planning on owning a home for the rest of your life. We can all make predictions but no one really knows what the market is going to do in 2, 4, 6 or even 12 months. Just look at 2009 real estate predictions versus actual results (VERY few people predicted the housing market to take off as it has). It is however fairly safe to assume that if you hold onto your home for several years, you will make money. Instead of timing what the market is going to do next month, focus on what it will do a few years out. If you believe the market is going to go up, then ignore short term price swings and go for it.

2. Plan for Future Life Changes. Typical first time buyers in their 20’s and 30’s generally have a number of life changes to look forward to: marriage, children, potential career changes, etc. While you can’t eliminate these unknowns you can plan for them when buying a home. Don’t ignore things such as local schools, access to major transit lines and the size of that 3rd bedroom. You just never know when these things will become important to you. Even if you plan on moving in a few years, it is always better to buy a home that can accommodate future life changes (just in case).

3. Don’t be Swayed by the Media. Media headlines are meant to invoke readership. The headlines don’t need to be false to play up the most shocking details ultimately spinning a story out of balance. To prove my point, here is a sample of Real Estate headlines appearing in Canadian papers in the first quarter of 2009:

• GTA Housing Sales and Prices Plunge (Globe and Mail)

• January Home Sales Plunge 50% (Toronto Star)

• Loss of Confidence Swamps House Market (Toronto Star)

The Toronto Real Estate Board reported that in January 2009, median sale prices were down 5.3% from a year earlier. The only thing that dropped 50% was the number of homes being sold. The truth is most people don’t care about sales volume but do care about home prices. So why wasn’t the focus of these headlines on the actual price drop? Clearly, reporting a “5.3% drop” isn’t nearly as eye-catching as a “50% plunge”. Ironically, the best time to buy in 2009 was when the doom and gloom headlines were at their peak. Those buyers who had the insight to look beyond the fear-filled stories typically bought their home at a good price and low mortgage rate. While I wouldn’t ignore the media all together, I certainly advise buyers to take it with a grain of salt. Every article has a bias (mine included). In the end, it is your money and your decision. Do not let others dissuade you from doing what you feel is best.

4. Consider Your Future Income Potential. Understanding what you can afford is important but so is factoring in your future income potential. If you are early in your career, it is not uncommon that your salary will appreciate considerably within a few years. Not everyone can count on a salary increase however if you are confident you will make more money in the future, you may want to consider stretching into a home that you can live in longer. Moving costs can wipe out any profits if you decide to sell in the first few years of home ownership. If you are lucky, your home will appreciate quickly but this is not something you should count on. You should anticipate living in a home for at least a few years before breaking even or realizing a profit on its sale.

5. Don’t Let the Past Paralyze Your Future. First time buyers tell me all the time, “I wish I had bought 2 years ago”. The truth is that in real estate, the earlier you bought, generally the more money you have made. What first time buyers need to realize is that a few years from now someone will likely be saying, “I wish I had bought in 2009”. Prices are high right now but what is more important is where you think they are going to be a few years from now. If you believe they will be significantly lower, than wait; if not, jump in.

6. Be Prepared to Respond to Changing Markets. The housing market is finicky (just look at the market fluctuations in 2009 alone). Real Estate Board statistics are great at showing market trends but they are backward looking reports that are not necessarily indicative of the future. Supply and demand change significantly from month to month due to seasonal, situational and economic shifts. The faster that you as a buyer react to the changes in the market, the better off you will be. There are times when buyers have to be more aggressive to get the home they want and other times when they can be more demanding on sellers. The only way to know what the market is doing right now is to get the advice of a realtor. We are the ones who see the market shifting before the MLS statistics come out. Finding a realtor who is in tune with the area you want to buy in is a powerful tool. Find an agent you trust, and get them working for you as early as possible.

7. Understand Your Financial Options. Don’t rely on on-line mortgage calculators and internet information. The best people to talk to about financing your home are the experts themselves. A good mortgage broker or financial lender will tell you exactly how much money you qualify for and more importantly, provide you with different payment options. Speaking with a mortgage broker early on in your buying process (even 6-12 months out) can be key in giving you the knowledge you need to make an informed financial decision and they give many buyers the peace of mind they need to move forward. If you want some names of people to speak with, let me know. I know some fantastic mortgage brokers that I am happy to recommend.

8. Your Home Is Unlike Other Assets. A home is a place to live, relax and create memories, it is not just an asset. I find that most people have some kind of emotional reaction to a home when they find “the one”. My only point here is to tell you not to settle. There are great homes out there at every price point. Don’t let fear, frustration or guilt make you settle for something less than stellar.

9. Have Faith That People Want to Help Not Hurt You. It is natural for people to be guarded by realtors and mortgage brokers. I get it. Like every profession, not everyone abides by the same skill level. I will say though that for the most part realtors exist to help, not hurt you. I have no desire to work with someone who doesn’t want my help but I am more than happy to work with those who do. There is only so much information you can get from looking at MLS and researching the internet so don’t feel guilty about getting an agent involved before you are ready to buy. Many first time buyers are surprised when I tell them that I start working with many of my clients 6-9 months before they actually buy anything. My role is to educate and empower. This is not something that is necessarily accomplished in 2 weeks. Don’t feel guilty as a first time buyer to get a realtor and mortgage broker involved at the start of your home search. When you surround yourself with knowledgeable people, the entire process is much easier.

2010 is shaping up to be another fascinating year for real estate in Oakville. Best of luck to all the first time buyers out there! For more advice, visit www.lindsaywalls.com or email me at lindsay@remaxaboutowne.com.

Regards,

Lindsay

The Real Reason You Should Sign A Buyer Representation Agreement

Fri, 27 Nov 2009 15:15:19 -0800

If you have spoken to a Realtor about buying a home, you should be familiar with the Buyer Representation Agreement. Like any contract, the Buyer Representation Agreement outlines commitments that your agent promises to make in exchange for commitments you promise to make. Under this Agreement, agents are committed to provide you with the following duties: LOYALTY, OBEDIENCE, DISCLOSURE, CONFIDENTIALITY, REASONABLE CARE AND DILIGENCE, and ACCOUNTING. In exchange, buyers commit to ensuring the agent is paid for services rendered (Note that in most cases, the payment is usually paid by the seller). Legally, realtors are obligated to discuss buyer agency with potential clients at the earliest opportunity.

When I first learned about Buyer Representation Agreements I wasn’t convinced they were really in the best interest of buyers. You can argue that realtors like Buyer Representation Agreements as they bind buyers to them and ensure they get paid regardless of the service they provide. I agree to a certain extent but have quickly determined that as a professional realtor, establishing a Buyer/Agent relationship is the only way I will do business. Here’s why…

As a realtor I meet a lot of people who are looking for information on the Oakville housing market. I receive several emails and phone calls and am happy to spend time discussing real estate issues with potential clients (really I am) but like everything else there is a limit to the amount of hours in my day. Despite what many people want to believe, real estate is much more than setting up appointments and opening up doors. I say this with the utmost honesty as someone who knows the pressures and stress of a corporate job. There is no way I would have chosen to switch careers if I thought the advice of a realtor could just as easily be learned through an MLS or Google search. No one understands the nuances of the local market, future development plans for an area, the art of negotiation, school issues and make-up of specific neighbourhoods like an intelligent, diligent local realtor.

I spend hours upon hours working for my clients and several more keeping up to date with current real estate and housing information. My first priority is to my clients and in order to provide a level of service that I am proud of, I limit my interactions to clients first and prospective clients second. To be brutally honest, I just don’t have time to dedicate the kind of service buyers deserve (sometimes for months at a time) without any kind of commitment of loyalty from them. For me, the Buyer’s Representation Agreement solidifies my commitment of excellence and priority status to you in exchange for your commitment of loyalty to me.

When explained this way, I find that most people have no issues signing the agreement, leading to a relationship built on trust and service. It is the best way I know how to do business. I question buyers who believe that they will somehow get better service or a better deal without using a committed Buyer’s agent. I simply do not understand how they think they will get first class service and advice without any kind of commitment (on either end). Like most things in life, you get out what you put in. If you believe realtors are transactional type people who simply book appointments and unlock doors then you can easily find one that will be willing to provide you with minimal service for minimal commitment. If you expect more out of your realtor, then take your time, find a realtor you trust, have them commit to you, and be willing to commit to them. If you do so, you will be impressed by the advice and expertise you gain from the experience.

Questions or comments? Visit www.lindsaywalls.com for additional information on the Oakville real estate market. Feel free to comment below, email me at lindsay@remaxaboutowne.com or call me at 905.338.9000.

Regards,

Lindsay

Read This Before You Buy From a Developer

Tue, 13 Oct 2009 11:16:56 -0700

My husband and I recently bought a new house. While we had no intention of buying from a developer, after many conversations and much investigation it was clearly the right choice for us. My wonderful husband Chris is used to me talking about houses and the real estate market non-stop so he was not surprised when I asked him one day if we could stop by a builder’s sales office on our way out of town to spend the day with our nephews. Truth be told, I think he was actually warming up to the idea that it was time to move although you would be hard pressed to catch him admitting it. My intentions were really just to understand the new phase being developed by the builder as I do with all the new developments in Oakville. I wasn’t serious about buying for ourselves and yet there we were 6 days later, standing in line overnight waiting to purchase a new home.

When we arrived at the sales office for the first time we were practically laughed at for being so naive as to think that the homes being advertised were still available (how silly of us!). We were promptly told that they were released a month earlier and already sold out for weeks. All I will say is that it was truly an interesting experience to be sitting on the client side of the fence. Even though I live and breathe the local market and knew all the reasons why this was a great investment, my emotions ran high throughout the whole experience. To be honest, if it wasn’t for my knowledge of real estate, I’m not sure I would have been prepared enough to actually purchase new. New home buyers tell me all the time that they wish they had done more research before they bought and I couldn’t agree more. Remember, that while the builder’s sales representatives are available to help, they ultimately represent the interests of the developer NOT you as a buyer. The only way to really know whether or not you are making a wise decision is to do your homework. Below is a list of steps that my husband and I undertook prior to the purchase of our home. As a realtor, I highly encourage anyone thinking of buying from a developer to do the same. Without further adieu, here they are...

Before You Buy From a Developer:

Compare the builder’s price to comparable homes in the resale market – how else are you able to determine whether or not the home you are about to purchase is a wise investment? The market has seen several years of steady growth so most new home buyers have enjoyed significant gains when they’ve sold but this upward trend isn’t a guarantee. New homes should ALWAYS be compared to resale homes to determine their value. Don’t just take the builder’s price for granted without doing your research first. Some new home values are much more attractive than others. The best way to compare homes is to look at recent comparables that have sold in similar areas.
Confirm the local schools, than expect them to change – Even if you are not planning on having children, it is important to understand your new home’s local school. The majority of new developments attract families with children and this can play a significant factor in resale. Remember that your local school boundaries are likely to change as your neighbourhood continues to experience rapid population growth. Do your homework to understand not only current but also expected future local schools. If you have school age children, the possibility is strong that they will have to switch schools due to changing boundaries so be prepared.
Choose your builder wisely – Understand that picking your builder is equally as important as picking your home’s location and layout. You want a builder who has a good track record of customer care both during and post build. I would look at JD Power and Associates New Home Builder Customer Satisfaction Survey in addition to speaking with friends and searching for new builder forums and chat rooms on-line.
Talk to people who own a home from the builder you are considering – I personally think this is an essential step. You will never get a truer picture of the quality of a builder than from the people that have already gone through the experience. I strongly encourage you to knock on some doors of older homes built by the same builder and ask the owners what they think of the quality of the home and their experience with the builder. If you aren’t sure which areas are built by the same builder, call a local realtor. I for one am happy to answer people’s questions.
Review the zoning and zoning applications of neighbouring areas – The future development plans of the areas surrounding the lot you are interested in is really important. If you don’t want to live next door to a warehouse, major throughway or strip mall, then it is important to review the zoning around your neighbourhood. That vast field next to your lot may not remain that way forever. You can check zoning by visiting the Town of Oakville’s Planning office.
Ask lots of questions – Don’t feel pressured to buy just because everyone else tells you it’s a great deal. Instead of just dropping by the sales office, book an appointment with one of the sales representatives for some one on one time and use this time to ask questions about the developer, development, floor plans, etc. Do not leave until you get answers to all your questions.
Visit homes still in the building phase - This isn’t possible for every development but if you should be lucky enough to purchase from a developer who has other homes still in the construction phase, try to visit the site after hours. Walk around the properties and pear through windows to check the quality of workmanship and take note of things such as electrical outlets and structural walls as well as the home’s flow and layout – basically all the things you can’t be sure of from a floor plan. My experience has been that you will often find other snoopy home buyers on the sites after hours that can all provide valuable tips about the builder and model you are interested in.
Factor In Upgrade Costs BEFORE you buy – Everyone knows that builders often have hefty mark-ups on upgrade costs however these costs vary significantly from builder to builder. A purchase price of $500,000 can easily turn into a final price of $600,000 from one builder and $550,000 from another. It all depends on what the builder includes as standard features and what they charge for each upgrade. If you can’t get your hands on a complete upgrade price list, at least ask your sales rep or design centre for price lists on popular upgrades (ie: staircases, cabinets, granite, etc). This will at least give you an idea of how much you will spend and how big the builder’s mark-up is.
Be ready to visit the site often and expect errors – there are literally thousands of components that go into building a home. As a former project manager, I know that not even the best run projects run perfectly. Mistakes should not be large and should not be commonplace but they do occur. Best to be prepared for some mistakes and check in with your builder and home while it’s under construction to make sure things are ticking along as planned. How a builder handles mistakes is very telling so ask other people who have bought through the builder how their issues were resolved.
Don’t expect a custom home – There is a huge difference between buying a common floorplan from a major builder and building a custom home. While there is nothing wrong with customizing certain aspects of your home, you must realize that to do so will 1) cost you money 2) result in a larger margin for error and 3) may not turn out the way you expect. My personal take is that it is okay to make some modifications to a home but if you need to change too many structural elements, you are probably better off picking a different floor plan altogether.
Understand that the early bird gets the worm – If you decide that the home is right for you, ask the builder’s sales rep when they expect people to start lining up. Our sales rep told us that people started to line up at 5 am for an 11am opening during the last phase they released. We showed up at 12:45am and were 4^th in line. It sounds crazy and it is but it is not uncommon in today’s market for people to start lining up 2 days in advance of a release of homes. Find out what is reasonable for the development you are interested in and be prepared to show up even earlier for choice lots and layouts.
Talk to a local realtor before you buy – realtors speak to home buyers for a living. There is no one better to advise you on layouts, lots, colour choices and features that are attractive to buyers. Why not take the time to review your thoughts with a local realtor for a second opinion? You don’t have to follow their advice but it’s better to know before you buy whether or not your home’s features will appeal to resale buyers. I believe most realtors will be happy to discuss your options with you if for no other reason than to build customer relationships and goodwill in the community.

Best of luck to those of you buying a new home. Chris and I are excited to see the progress on our own home and will keep you updated as things progress. If you have any questions or comments about buying new, please let me know. I can be reached at www.lindsaywalls.com, lindsay@remaxaboutowne.com or 905.338.9000.

All the best,

Lindsay

The Oakville Development Charge Fiasco – Issues Explained

Wed, 30 Sep 2009 14:26:17 -0700

Keeping up on the Development Charge debate being waged in Oakville? For those who have not yet heard, the Town of Oakville recently approved a 65% increase in the development charges used to fund infrastructure costs associated with growth. At the heart of the debate are two issues: 1) the town and region need to find a way to fund growth and 2) developers are concerned about the impact of a 65% increase on growth.

Publicly, both camps have been quite clear on the need for self-funded growth. In other words both sides recognize that growth should not come at the expense of existing tax payers. In a letter to prospective buyers sent out in June, Peter Gilgan, CEO of Mattamy Homes writes, “If there’s one message, it’s that we’re not asking any existing taxpayer to pay one red cent…to support any new development”. Oakville’s Mayor Rob Burton also commented in a recent Oakville Beaver article that “increasing development charges is essential to minimize the impacts of growth on our current taxpayers”. I’ve spoken to several people who have the opinion that the developers are just being greedy and wanting to “get away” with not paying their fair share of costs. Before blasting developers I decided to take the time to read through all the information I could find on the subject. After several hours of perusing documents posted on the Town of Oakville’s website, I think the jury’s still out on whether or not the 65% increase is justified but I do believe that developers were absolutely justified in questioning the recently implemented development increases.

In June, the Town of Oakville published a report entitled “Development Charges Background Study”. This 174 page study outlines the logic and rationale for the 65% increase in residential and 34% increase in non-residential development charges. The document raised a number of red flags which were then questioned by the developers. In no particular order, I have summarized below what I found to be the developer’s main issues with the study. Note that the issues outlined below are my interpretation of what I have read and may not be reflective of the opinion of all Oakville developers. I am simply basing my interpretation on what I have understood from the documents published on the matter. Some of these issues have been resolved and many have not. I have posted links to all my sources at the bottom of this article. I encourage everyone to consult these sources for further information on the issues at hand.

Issue 1: Methodology Used to Calculate Expenses

There are at least two ways to calculate development charges, the first is a “Net Population” calculation, the second a “Gross Population” calculation. In the most recent background study, the Town of Oakville moved from a “Net” to a "Gross” calculation resulting in significantly higher estimations for many service costs. Under the “Gross” method, development costs are based on population changes from new housing only; under the “Net” method, development charges are based on total population change. Current trends show that the number of people per house is on the decrease (fewer people having children, etc).

The developers are challenging the new “Gross” methodology under the law reasoning that as current population levels decrease, service levels actually increase per resident (same service level spread across fewer residents = improved service level per resident). Under the Development Charge Act, development charges can ONLY be based on current service levels and cannot be used to charge developers for improvements to the level of service currently offered elsewhere in the community.

Other towns and regions have also started using the “Gross” population method. I can see the logic of using both methodologies but think it’s important to note that this simple change has a significant impact on the value of the charge. While I haven’t seen any concrete information estimating the cost difference, if it weren’t significant, it wouldn’t be such a contentious issue. Perhaps it’s not a bad idea to let the courts decide which methodology is most appropriate.

ISSUE 2: Accuracy of Cost Assumptions

Immediately following the release of the background study, developers started corresponding with the town to understand the reasoning behind the dramatic cost assumption increases relative to the 2004 study. Again, bear in mind that under the Development Charges Act, all costs related to development must be used to maintain and NOT improve current service levels. Below is a graph from June’s background study showing which areas were most dramatically hit with higher cost assumptions.

Here are just some of the questions that developers had for the Town of Oakville regarding cost assumptions:

Land acquisition cost calculations
Cost assumptions of parks and recreational infrastructure
Justification of significant cost increases in building and vehicle assumptions (various developers claim the report includes a 135% increase in fire station building costs, 174% increase in Oakville arena building, 100% increase in fire service vehicles – all versus the previous study’s cost assumptions in 2004)
Understanding certain land valuation increases (average 375% increase in land value for Oakville libraries, 1214% increase in land value of centennial pool, 100% increase for major valley parkland)
Assumptions for road and road related costs including a 257% increase in the South Service Road project, 139% increase in the Sixth Line Project

It could very well be that all the cost assumptions are based on accurate, up to date information. Even so, is it wrong for developer’s to question the rationale for such significant increases? Certainly property values have increased in the last 5 years but even so, many of these increases are extraordinarily high. In this regard, I believe the developers were completely justified in understanding the town’s calculations. I would do the same thing if I were in their shoes.

ISSUE 3: Classification of Charges

This is clearly an interpretation issue. After reading through many of the developers comments on the background study, it appears that some developers don’t understand why certain charges are classified as development related. They question instead whether some of these costs are related to servicing existing residential services and potentially increases to existing service levels (both of which are contrary to the Development Charges Act). Just as it is unreasonable to expect current residents to foot the bill for growth, it is unreasonable to expect future residents to pay for existing services.

Here is a selection of comments I found on this matter:

In a previous study, 20% of a cost of a project at Third Line (Lakeshore to Rebecca) was allocated as a service for existing residents. Now this same project is classified as 100% attributable to growth and classified 100% as a developmental charge.
Another project at Fourth Line (Speers Road to Wyecroft) has been reclassified from 80% to 95% attributable to development
$20 million dollar project of North Service Road from Joshua Creek to Ford Drive assumes no benefit to existing residents
Additional Municipal parking spots in downtown Oakville were originally allocated as 90% growth related (only 10% attributable to existing residents). The rationale for this was questioned by several developers. I believe the town has since reviewed this figure and agreed to lower the allocation based on developer’s concerns so hopefully this is now a non-issue.
Background study includes $25 million in charges related to creating pedestrian overpasses on Dundas Street. Developers question whether this is in fact an improvement to existing service levels as overpasses are not found in other areas of Oakville

In the town’s defence, there could be other examples of projects reclassified in favour of the developers. The only one I came across was the town’s reconsideration of municipal parking charges in downtown Oakville which were only reduced after being questioned by developers.

OTHER ISSUES:

There are a myriad of other issues raised by various developers which I didn’t detailed in this article. A small sample of these issues include calculations for residential to commercial ratios, questions of when the development charge should be payable, allocation of road costs as municipal versus regional and the list goes on...

Still trying to wrap your head around the issues? Here is some background information...

Development charges are levied to recover costs associated with the construction of roads, water and sewer infrastructure that is needed to service new development (both residential and non-residential). Development charges are paid to the Region, the Town, GO Transit and local school boards
A development charge increase of 65% for residential and 34% for non-residential development was approved by the Town of Oakville on August 10^th, effective August 31, 2009.
A new single family residential unit in North Oakville will now have a charge of $21,682 compared to the previous charge of $13,327. South Oakville charges are now $22,018 compared to the previous charge of $14,102 (difference between North and South Oakville is an area specific charge of $336 for storm water management in South Oakville).
Oakville’s development charges are now the highest of any community in North America
Town of Oakville has noted that development charges will be used to fund the following activities (in addition to various other services and road infrastructure costs):
North Park Quad Arena, QE Park Community Centre, A new library branch, Two new fire stations, Additional buses, Kerr Street widening, Mid-town and QEW crossing, New North Oakville operations depot, Wyecroft Road expansion, New park development
In June 2009, the Town of Oakville released a 174 page Development Charge “Background Study” which outlines the rationale behind the new costs. It is from this study that most of the development charge questions have arisen. The previous Development Charge Study was conducted 5 years ago in 2004.
Interesting to note that the following decisions have been made in nearby municipalities:
- Municipality of Hamilton – decided to freeze development charges for a minimum of 12 months
- City of Toronto – freeze on development charges for 2 years
- City of Burlington – decreased residential development charges
- Town of Milton – raised development charges by a marginal amount

MY TAKE:

To be blunt, I think it’s easier to view developers as “bad”. It is clear that many people I’ve spoken to see them as greedy harmful corporations out to ruin the beautiful Oakville community and environment.

I whole heartedly disagree with this point of view. Yes, developers are out to make profit and yes the government is required to put the necessary checks and balances in place in order to preserve our community, services and environment. We may not like it but that is the way it has to be. Private and Public companies simply need to make profits in order to be sustainable and employ Canadians.

Love them or hate them, many of us live in homes that at some point were built by the very developers we criticize. These homes are ultimately where we create memories, live our lives and connect with our neighbours. Regardless of how you may feel, many of us would be homeless if it weren’t for the very homes these developers built. As such, I think it’s important to understand exactly what issues the developers had with the approved development charge increases. After looking at the information closer, I understand that this is clearly NOT a simple matter of greedy developers. There are thousands of people that are anxiously waiting to live in areas of Oakville yet to be developed. There were numerous discussions between developers, the Town of Oakville and the consulting firm of the background study that took place this summer. I don’t pretend to understand enough to judge if the development charges were justified but I do applaud the developers for speaking on behalf of the anticipated 72,0000 new residents and 47,000 new business opportunities that are expected in Oakville over the next 20 years.

I appreciate the hard stance the Town and Region are taking to ensure growth is sustainable and up to the standards Oakvillian’s expect and deserve. It’s hard to criticize governments that have historically made the hard decisions that have kept Oakville a charming and unique place to live. I spent a good portion of my day yesterday walking in Oakville trails. Afterwards, I drove in a new development of a neighbouring city, solidifying in my mind that Oakville communities are unmatched elsewhere. The Town of Oakville is holding its developers to a higher standard and the last thing I want is to dismiss their efforts. I am however concerned that the future growth Oakville needs (particularly employment growth), is being jeopardized as development costs jump higher and higher. Employment growth in particular is needed to significantly offset residential tax burdens. At some point, developers are going to take their business to more profitable and less politically charged communities. Have we reached this point yet? Probably not but I am concerned that we are tipping the scales too far against development at the expense of future opportunities.

Growth is a balancing act where developers, government, business, current and future residents should all come out ahead. I think this is possible but only if we respect the developers who play an important role in the process. We need them to create the communities so many people are anxiously awaiting to live in. As development charges ultimately get packaged into the price new home owners pay, questioning the significant rate increases was the ethically responsible thing to do. I applaud the developers for wanting to understand the town’s rationale and encourage all prospective new home owners to do the same thing.

If you have thoughts or comments on this issue, I would love to hear from you. Leave a comment below, visit my website at www.lindsaywalls.com, email me at lindsay@remaxaboutowne.com or call me at 905.338.9000.

Regards,

Lindsay

Power Plant To Be Built in Oakville – OPA Awards Contract to TransCanada Corporation

Wed, 30 Sep 2009 13:48:25 -0700

Yes it’s true. Today, the Oakville Power Authority (OPA) announced plans to build a gas fired power plant in Oakville. The power plant will specifically be located along Royal Windsor Drive, next to the Ford Motor Company’s Oakville manufacturing plant just southwest of Ford Drive and QEW. OPA awarded the power plant contract to TransCanada Corporation; the only company of the 4 bidder’s who plans to build on Oakville lands. The other 3 companies all proposed to build in the neighbouring Clarkson area of Mississauga.

Tens of thousands of Oakville and Mississauga residents have signed petitions to stop the 900 megawatt gas fired plant from being built in Oakville or Clarkson. In a recent press release by OPA, Colin Andersen, chief executive officer of the Ontario Power Authority had this to say, “This new plant will meet local needs for a reliable supply of electricity, strengthen Ontario’s overall system, while performing far above Ontario’s stringent air emission standards.”

Construction of the plant is expected mid 2010 with an operational date of January 2014. While Premier Dalton McGuinty says the plant is needed to supply the growing power needs of the GTA, local residents have been outraged for months over the prospect of it being in their backyard citing that the area is already environmentally overtaxed.

The contract for the plant may have been awarded but this battle is far from over. One thing is for certain - Oakville residents will not give in to the Provincial Government’s plan for a new plant so easily. I suspect the Ontario government is about to see a fight like they have never seen before....

If you have questions about this or any other topic related to Oakville real estate, please contact me at 905.338.9000, lindsay@remaxaboutowne.com or visit my website at www.lindsaywalls.com.

Regards,

Lindsay

Survey Says - 2009 Oakville Citizen Survey Results

Mon, 06 Jul 2009 15:10:32 -0700

A couple of months ago, Oakville town council reviewed the results of a report measuring the satisfaction and priorities of Oakville residents. Craig Worden, the Vice-President of Public Affairs at Pollara (the market research firm conducting the poll) had this to say about the 2009 Oakville Citizen survey results - "Based on experience this is among the most positive results I've every seen. It's really quite uncanny that we had to point to areas of improvement but those areas you actually had positive scores on".

This is an excellent survey to flip through, especially if you're curious about what people have to say about Oakville. To view a copy of the report, please click on this link 2009 Oakville Citizen Survey.

To learn more about issues affecting Oakville, please contact me at 905.338.9000, lindsay@remaxaboutowne.com or visit my website at www.lindsaywalls.com.

Regards,

Update on Southeast Oakville School Closures – Final Approvals Passed

Wed, 01 Jul 2009 18:02:34 -0700

In mid-June, Halton District School Board trustees confirmed the final ruling on the Southeast Oakville (Ward 3) public school closures. After months of debate and community input, the trustees voted in favour of an option put forth known as Hybrid 3B. If you’re like me, Hybrid 3B means nothing to you so I’ve summarized what this means below.

The following 3 schools will be closed as of September 2010: Brantwood, Chisholm and Linbrook. A new elementary school will be built in Clearview and the remaining schools of Maple Grove, EJ James and New Central will remain open.

Facts:

Maple Grove, EJ James and Clearview all qualify for a full-time Principal, Vice Principle and SERT (Special Education Resource Teacher). New Central will not qualify for a Vice Principal
School closure project is expected to result in a positive cash flow of roughly $3.9 million after proceeds from land disposition and construction costs are accounted for
Expected to reduce bussing requirements from 858 students to 565 students (34% drop)
Ideal elementary school size has been deemed 450 students
Total Southeast Oakville enrolment capacity is 1677 students. Projected enrolment in 2015 expected to be roughly 1470 students
Construction costs are required to accommodate student enrolment changes (and school supplies) at the new and existing schools

Interested in knowing exactly where your child will be attending? Click on this link to see the proposed school boundary maps for the area. Note that the Halton Board has a tendency to change boundaries based on enrolment projections so the boundaries may change between now and September 2010.

If you have questions about this or any other topic related to Oakville real estate, please contact me at 905.338.9000, lindsay@remaxaboutowne.com or visit my website at www.lindsaywalls.com.

Regards,

North Oakville - Proposed Tax Hikes Impact Development

Wed, 01 Jul 2009 17:53:21 -0700

Peter Gilgan, the owner of Mattamy Homes here in Oakville recently sent out an email regarding his company’s North Oakville development plans. For those of you who don’t know, Mattamy is the largest land owner in the yet to be developed area of North Oakville (North of Dundas Street).

At the heart of the email is Mattamy’s concern over a proposed increase in new development taxes. When a new home is built, the developer has to pay a development charge to both the region and local government in exchange for certain developmental services such as roads and utilities, park development, fire and rescue services, additional library and recreational services, etc. Ultimately, these development charges are passed down to new home buyers as reflected in the purchase price of their home.

Oakville’s current development tax is already significantly higher than other surrounding communities (see figures below). On July 15^th, Halton Regional Council is voting on a proposal to raise the development charges by $8,000 per lot to $55,200. To exacerbate the issue, a further $9,000 charge is being contemplated by Oakville Town Council, bringing the potential charge for a small detached lot in Oakville to $64,200.

Current Development Charges for small detached or semi-detached lots:

Oakville $47,200*

Mississauga $32,100

Aurora $37,100

Pickering $29,800

* Oakville’s current development charges are roughly 47% higher than Mississauga, 27% higher than Aurora and 58% higher than Pickering. The proposed increases to $55,200 and $64,200 will respectively bring charges in Oakville a whopping 72%-100% higher than our neighbours in Mississauga.

To be fair, I would expect Oakville to charge higher than average development costs as it also provides its residents with great services and a great community. Charges in excess of 50-100% do however make me question exactly how this money is being spent. I question whether or not the developers and new buyers are being forced to take the hit for shortfalls in government money no longer being passed down from the federal and provincial levels.

Development conversations have been going on for six long years now. Like many people, I am excited by the North Oakville development plan and am looking forward to see it move forward. Recent arguments over government funding and now development charges are however making me wonder if the benefits of careful planning are being outweighed by the costs of inertia. The longer these developments are delayed, the higher the cost of development to potential buyers. There have been 6 years of consideration given to understanding the effects of new development on the Town of Oakville. The question I want to know is whether or not anyone has considered the effects of NOT developing. Improvement of town services through an increased tax base being just one positive impact of new development.

We all want a great place to live but at some point, we have to stop the roadblocks and find a way to let development move forward. In my mind, squeezing the developers and in turn, squeezing the pockets of new residents is not a great approach. If you have thoughts on the matter, I would love to hear from you. You can contact me at 905.338.9000, lindsay@remaxaboutowne.com or visit my website at www.lindsaywalls.com.

Regards,

Slimy Salespeople Not Welcome Here

Wed, 24 Jun 2009 16:20:38 -0700

I had an epiphany a few days ago – in a car dealership of all places. My sister was looking for a new car and had asked me to come along with her to negotiate with the sale rep she met a few days earlier.

To protect the guilty, I will not mention the name of the dealership we went to however we were greeted with a warm welcome and immediately ushered into the salesperson’s office where things quickly fell apart. While the salesperson was very much interested in getting to figures, my sister was still trying to figure out if she liked the dealer’s cars and if so, which model to choose. I started asking some questions thinking that this would help her reach a decision. Questions along the lines of fuel efficiency, safety features, maintaining warranty protection, pricing structures – you get the picture. Apparently this was the wrong thing to do. The salesperson was convinced that a certain model was best suited for my sister and seemed offended that she would even have questions, questions that he wasn’t able to answer. The longer we sat there, the more he pushed; the more he pushed the less we listened. Perhaps it was just coincidence that there was an abundance of stock on the model he wanted her to buy; perhaps there really was a computer crash that prevented him from answering our questions but something in my gut (and my sister’s) just wasn’t buying it.

Much like car salespeople, realtors often get a bad rap for being pushy, uninformed, lazy, you name it. Let me be very clear though that my opinion of salespeople is not a negative one. I’ve come to appreciate the difficulty of sales roles and have had the privilege to work with some amazing people along the way. However, sitting across from this particular salesperson I was just a mad and frustrated consumer. I couldn’t figure out why this person was unwilling and/or unable to answer our questions. To make matters worse, I got the distinct feeling that he was trying to push something on my sister because it suited him with complete disregard for her needs and wants.

Reflecting on this experience, it occurred to me that there is a HUGE difference in how salespeople approach their roles. The salespeople I want to deal with are patient, knowledgeable, and listen to the needs and wants of their clients. Much like an educator, they equip me with the knowledge I need to make an informed decision. Conversely, there are those salespeople that come across as pushy, intimidating and self-serving. They are the people I like to think of as skilled at the hard sell.

The next time you meet a salesperson, ask yourself if they are trying to “SELL” you or if they are trying to “EDUCATE” you. You know yourself better than anyone else, including the salesperson you work with. A good salesperson knows this and works hard to give you the information you need to be comfortable making a decision for yourself. Next time you find yourself in a car dealership (or real estate office), look for the signs of a true educator and hang on tight when you do!

AS AN ASIDE: I walked into another dealership two days after the first salesperson debacle and had ALL my questions answered by a simply FANTASTIC sales person. My sister went back a day later armed with all the information she needed to make an informed decision and is now thrilled with her brand new car.

If you are looking for a non-slimy salesperson, I would love to hear from you! I can be reached at 905.338.9000 or lindsay@remaxaboutowne.com. Check out www.lindsaywalls.com for further information and opinions on the Oakville real estate market.

Regards,
Lindsay

The Naked Truth About Real Estate Agents - My Very Un-Savvy, Very Honest Message To Anyone Thinking About Buying or Selling

Fri, 01 May 2009 14:44:42 -0700

Here is a dirty little secret about the real estate industry. To be successful, agents have not 1 but 2 jobs. One job is to HELP PEOPLE BUY/SELL REAL ESTATE. This is the obvious one. What most people don’t realize is that this is really an agent’s second job. Our first and more difficult job is TO SELL OURSELVES. Think about it this way - if I can’t sell myself than I will never have any clients and no clients = no pay check. I love what I do but I can’t afford to work for free. While I am happy to provide people with information, the expectation is that by doing so you may one day turn into a client. My job is then and only then to provide you with services you require to buy or sell your home (job #2).

So why am I telling you all this? I think if I’m being honest, I would urge you to distinguish between a realtor’s two jobs. Ask yourself if having a realtor with glossy magazine ads, dozens of listings, and a fancy website helps sell YOUR HOME or helps sell THEM. Make no mistake about it, I’m not at all suggesting that realtors with big ad budgets aren’t effective at what they do but I don’t think that this alone makes for an effective realtor. Finding prospective clients is hard work and the giant advertising budgets used by many realtors helps them sell themselves to you. I used to work for a global consumer goods company. My job was to manage a cross functional team of people in launching new products into the marketplace. You could say that I know a thing or two about effective sales and marketing. What I learned from the experience is that successful businesses understand that no one function can work independently of another. In order to be successful all aspects of their business need to come together and be executed with brilliance.

When you are looking for a realtor I think you need to look for someone who demonstrates that they understand all aspects of the home buying and selling process and aren’t just effective at producing impressive ad campaigns. A glossy magazine spread is not going to sell your home alone but a home that is staged properly, priced fairly and promoted effectively will sell. When you pay a realtor for their services, you should be paying them for their knowledge, not just their ad budget. Effective advertising is after all only one component of a successful real estate transaction.

With all this said, this is my non-glossy, un-savvy list of criteria I would look for in an agent. Note that many of these items are of the non-advertising type...

- Understands the area where I am buying/selling and the types of properties I am looking at (townhomes, luxury properties, new home sales, etc)

- Is willing to dedicate the necessary time and service I require to buy/sell. Someone who will accommodate my schedule and need for information and someone who demonstrates patience throughout the sales process

- Will conduct in depth market analysis to understand the value of the property or properties I am looking to buy/sell AND is able and willing to explain their logic to me in depth if desired

- Is able to answer my questions and perhaps most importantly find the answers to the questions he/she does is not able to immediately answer

- Someone who respects my privacy and does not disclose information to other agents and potential buyers/sellers unless agreed to

- Someone who is a smart negotiator and explains their negotiating logic to me prior to entering any deals. A person who is able to guide me fully throughout the process but does not push me into making a decision

- Can provide me with recommendations for related experts such as mortgage consultants, lawyers, house inspectors, insurance agents, etc but does not push any one specifically on me

- Someone that I like to work with. If I am going to be spending so much time with my realtor, I want someone I actually like being around

My philosophy is pretty simple. I try to provide the kind of service to my clients that I would want to receive. My approach may not be for everyone and that is okay. I encourage all home sellers and buyers to find the person that most closely fits their needs. There are lots of great realtors out there that really do want to look out for your best interests; all it takes is a bit of research to find them. All the best to you in your home buying and selling endeavours! If you would like further information on the Oakville area or my services, please contact me at 905.338.9000 or email me at lindsay@remaxaboutowne.com

Regards,

Lindsay

Save our Schools! - Information on the Proposed Changes to Southeast Oakville Elementary Schools

Fri, 01 May 2009 13:55:32 -0700

If you have driven through Southeast Oakville at all in the past year, you have probably noticed the “SOS - Save our Schools” signs scattered across residents’ front lawns. While the slogan has a clever ring to it, the issue of Southeast Oakville public schools is a serious one for the Halton School Board and local residents alike. At the heart of the debate is the impact that proposed school closures and boundary changes will have on local students.

The Halton District School Board has been listening to residents’ concerns and recently released a multi-page letter to educate impacted homeowners, solicit feedback and ultimately bring progress to the school system. Clearly this is an issue affecting all existing residents as well as home buyers thinking of moving to the area. In an effort to clarify the situation to potential buyers, I have summarized the proposed changes below.

The expected school boundary changes affect all 7 existing public elementary schools in Southeast Oakville as well as 1 new public school which is planned to be opened in September 2010. Existing schools include Chisholm, New Central, Brantwood, Linbrook, Maple Grove, New Central, and E.J. James. The new school is proposed to be called Clearview public school.

From the school board’s perspective, changes are required to accomplish the following:

Enhance Services and facilities offered to students in the area
Respond to Changes in the Community to be consistent with current and projected student needs
Seek Broad Public Input prior to making any final decisions with regards to Ward 3 schools.

Many options have been proposed but there are 6 that have been shortlisted with the hopes that one will become final. In each option below, the schools not named are being slated for closure.

Option A1

Clearview – English & French – JK-8

New Central – English and French – JK-8

Maple Grove – English – JK-8

Option A2

Clearview – English & French – JK-8

Linbrook – English & French – JK-8

Maple Grove – English – JK-8

Option B1

Clearview – English – JK-8

EJ James – English – JK-8

Maple Grove – French – 1-8

Option B2

Clearview – English – JK-8

Maple Grove – English – JK-8

EJ James – French 1-8

Option C1

Clearview – English and French – JK-8

Maple Grove – English – JK-8

New Central – English – JK-8

EJ James – French 1-8

Option C2

Clearview – English and French – JK-8

Maple Grove – English – JK-8

Linbrook – English – JK-8

EJ James – French – 1-8

Note that these are the 6 options currently under review. The final decision could be one of these options or a variation thereof. If you are looking to buy in Southeast Oakville and planning to send your children to public school it is important to understand that the options mentioned above are currently undergoing what the board describes as a “consultation process”. Over the next couple months, the board has asked local residents to complete a survey indicating their preferred schooling option. They are also conducting a series of focus groups to collect input from the public. The board is saying that a decision will be made by June 2009 and implemented September 2010.

As someone who grew up in the area and attended 3 of the schools currently under review I have a few thoughts on the matter. The first is that all of these schools represent excellent education choices. Picking between Maple Grove versus Chisholm versus Linbrook is like picking between three different 5 star resorts. It’s a difficult decision to make especially when your personal preference likely hinges on how the changes affect your child personally. I applaud the communication underway between the school board and local residents, however hard it may be. It shows that Oakville is a caring community that is willing to get involved to ensure that the decisions affecting it are for the greatest good. Ultimately, I believe that the proposed changes represent a huge opportunity to improve the already great quality of education in the area. Fewer schools reduces complexity within the school system and ultimately frees up resources that when re-distributed effectively, can be used to improve the quality of education for local school children.

For further information on changes affecting Southeast Oakville public schools, please visit the Halton district school board at www.hdsb.ca and click on the link titled “Ward 3 Community Consultation”. To speak further about this or other issues concerning Oakville, please send me an email at lindsay@remaxaboutowne.com or call me at 905.338.9000. I am always happy to talk about issues affecting the community.

Regards,

Lindsay

Time to Review Your Mortgage…Bank Rates Cut a Further 0.5%

Tue, 03 Mar 2009 17:08:44 -0800

The Bank of Canada announced this morning that they would be lowering the overnight lending rate 1/2 a percentage point. The major banks followed suit reducing the prime rate from 3% to 2.5%. Since December 2007, the bank rates have been lowered a total of 4% points.

If you haven’t already, now is a great time to speak with your lendor or mortgage broker about the options available to you to lower your existing mortgage rate. It could potentially save you thousands of dollars in interest. I am meeting a number of home owners who are seeing the softer market and attractive lending rates as a great opportunity to either move into their first home or trade up to a larger home. If you are considering buying a home or refinancing your existing home a good lendor or mortgage broker is essential. Having trouble figuring out who’s who? If you contact me at 905.33... or lindsay@remaxaboutowne.com, I would be happy to recommend you to some great people in the lending industry.

Below is the excerpt from the Bank of Canada’s press release this morning:

“OTTAWA – The Bank of Canada today announced that it is lowering its target for the overnight rate by one-half of a percentage point to 1/2 per cent. The operating band for the overnight rate is correspondingly lowered, and the Bank Rate is now 3/4 per cent.

The outlook for the global economy has continued to deteriorate since the Bank’s January Monetary Policy Report Update, with weaker-than-expected activity in major economies. The nature of the U.S. recession, with very weak auto and housing sectors, is particularly challenging for Canada.

Stabilization of the global financial system remains a precondition for the global and Canadian economic recoveries. The timely implementation of ambitious plans in some major countries to address toxic assets and recapitalize financial institutions will be critical in this regard.

National accounts data for the fourth quarter of 2008 and other indicators of aggregate demand point to a sharper decline in Canadian economic activity and a larger output gap through the first half of 2009 than projected in January. Potential delays in stabilizing the global financial system, along with larger-than-anticipated confidence and wealth effects on domestic demand, could mean that the output gap will not begin to close until early 2010. These factors imply a slightly lower profile for core inflation than was projected in the January MPRU.

The effects of the recent aggressive monetary and fiscal policy actions in Canada and other major economies will begin to be felt in the second half of this year and will build through 2010. Once the global financial system stabilizes and global growth recovers, the underlying strength of the Canadian economy and financial sector should ensure a more rapid recovery in Canada than in most other industrialized economies.

The Bank’s decision to lower its policy rate by 50 basis points today brings the cumulative monetary policy easing to 400 basis points since December 2007. Consistent with returning total CPI inflation to 2 per cent, the target for the overnight rate can be expected to remain at this level or lower at least until there are clear signs that excess supply in the economy is being taken up.

Given the low level of the target for the overnight rate, the Bank is refining the approach it would take to provide additional monetary stimulus, if required, through credit and quantitative easing. In its April Monetary Policy Report, the Bank will outline a framework for the possible use of such measures.

The Bank will continue to monitor carefully economic and financial developments in judging to what extent further monetary stimulus will be required to achieve its 2 per cent inflation target over the medium term.”

For more details, visit the Bank of Canada’s website at www.bankofcanada.ca

All the best,

Lindsay

Make Your Home “FIT TO SELL” to Maximize Your Return on Investment

Wed, 25 Feb 2009 19:06:02 -0800

By now, most of us have probably seen enough HGTV to realize that preparing your home for sale or “home staging” is a critical part of the home selling process. While most buyers tell me they can see beyond cosmetic issues such as paint colours, decor and furniture placement, the reality is that homes that look good, inevitably sell faster and for top dollar. When you remove the emotional attachment to your home by decluttering, depersonalizing, and neutralizing, you are left with a space that buyers instantly connect with. All of a sudden a buyer starts mentally moving their own things in.

Hiring home staging consultants has always been part of the services I provide to my clients. I’ve seen the benefits first hand and can’t stress its importance enough. Many people gloss over the work involved prior to listing your home but if you want to maximize your return on investment it is absolutely critical that you spend the time and energy preparing your home BEFORE you list it. Remember that the selling process begins long before the “For Sale” sign hits your front lawn.

RE/MAX recently came out with an exciting new program called FIT TO SELL. This is a great tool that homeowners can use at their leisure to help them prepare their own home for sale. To learn more about the program visit the Fit to Sell website at www.fittosell.ca. I am also including the latest Fit to Sell press release below for more details.

All the best!

Lindsay

Opportunity Knocks For Home Buyers

Fri, 20 Feb 2009 16:11:04 -0800

The Chinese use two brush strokes to write the word ‘crisis’. One brush stroke stands for danger; the other for opportunity. In a crisis, be aware of the danger – but recognize the opportunity.

John F. Kennedy

For a few months now we’ve heard all about the economy. Opinions are being given everywhere we turn – on the radio, on our tv’s, in our living rooms, as we talk to our friends and family. There is no doubt that we are living in interesting economic times but as we hear more and more opinions on the subject, I’m starting to see a trend emerge with home buyers who are looking at the sluggish economy as a fantastic opportunity.

I continually meet first time home owners who are interested in understanding the market and all the incentives available to them. I am also meeting several buyers who are weighing the option of moving into something a little larger – an option not affordable to them until recently.

Quite simply, education is key when making wise investment decisions. For those thinking about making your first foray into real estate, or for those looking at using the softer market to move up, here is a list of incentives currently being offered:

1. Tax Credit for First Time Homebuyers

Benefit: The new federal budget proposed a $750 tax credit for first time home buyers to help with various closing costs (legal fees, disbursements, and land transfer tax)

How it works: The tax credit is based on an amount of $5,000 for first-time homebuyers who acquire a qualifying home after January 27, 2009. The credit for a taxation year will be calculated by reference to the lowest personal income tax rate for the year and is claimable for the taxation year in which the home is acquired.

2. Home Buyers RSP plan withdrawal limit increased to $25,000

Benefit: In order to provide first-time home buyers with additional access to their RRSP savings to purchase or build a home, the 2009 Federal Budget proposes to increase the Home Buyers Plan withdrawal amount from $20,000 to $25,000. The RRSP funds deducted can be used for ANYTHING as long as you buy a home. Use the funds to cover your down payment, pay closing costs, reduce debt, buy a new car, buy furniture or apply against moving costs.

How it Works: Two first-time home buyers purchasing a home jointly (e.g. a married or common-law couple) with sufficient RRSP funds in each of their names may now together withdraw up to $50,000 ($25,000 each) from their RRSP funds toward the purchase of a home in Canada. Amounts withdrawn must be repaid over a 15-year period, starting the second year following the year of the withdrawal, or included in the individual’s income if not repaid.

3. Land Transfer Tax Credit

Benefit: First time home buyers are also eligible for a land transfer tax rebate of up to $2000, based on the purchase price of your new home.

How it works: The amount of the refund claimed will, if granted, offset the land transfer tax payable. For example, a home costing $300,000 carries a land transfer tax of $2,975. In this case, your tax refund will be $2,000 and your net tax payable is $975.

4. Home Renovation Tax Credit

Benefit: The new federal budget proposes a new tax credit for home renovations of up to $1,350. This credit applies to all home owners, not just first time buyers. Home owners can now claim a 15% credit on eligible expenditures between $1,000-$10,000, making a maximum tax credit of $1,350.

How it works: Renovation costs for projects such as finishing a basement, putting in new flooring, and re-modelling a kitchen will be eligible for the credit, along with associated expenses such as building permits, professional services, equipment rentals, painting and incidental expenses. Routine repairs and maintenance will not qualify for the credit. Nor will the cost of purchasing furniture, appliances, audio-visual electronics or construction equipment.

5. Low mortgage rates

Benefit: The big Canadian banks have recently lowered their prime lending rate (the rate that banks give to their best and most credit-worthy customers) to a low 3%. Obtaining a great interest rate on your mortgage can save you thousands of dollars over the long term.

How it works: There are currently a wide number of financing options available to qualified buyers at terrific rates. Lending rates vary widely by financial institution and personal credit history. All home buyers should visit a credible mortgage broker or lender for mortgage approval prior to placing an offer on a home. These professionals are skilled at helping you find the lending options best suited to your needs.

6. Shift to more balanced markets

Benefit: The local real estate market has enjoyed years of rising home prices and quick sales. For several years, local demand for housing has outpaced supply which is often referred to as a “sellers market”. This resulted in steadily rising home prices and quick sales. As the economy softens, so too has the general demand for housing. The opportunity now exists for buyers to seek homes at a lower price and for better terms than they could have at the height of the market.

Note: Each home is unique. Buyers should expect that homes offering good value (great location, desired features, and reasonable asking prices) will sell quickly and sell at a fair price.

Ready to take advantage of today’s fantastic buying opportunities? I would love to hear from you. Contact me at 905.338.9000 or lindsay@remaxaboutowne.com for more information on the home buying process and find your dream home today!

Lindsay

Threat of Global Recession to Hinder Home Sales in Major Canadian Housing Markets

Wed, 03 Dec 2008 14:08:34 -0800

The following article was just released by RE/MAX Ontario-Atlantic Canada Inc...

Threat of global recession to hinder home sales in major Canadian housing markets in 2008 and 2009, says RE/MAX - Recovery linked to economic stability next year

Global economic uncertainty weighed heavily on residential real estate activity in most major Canadian centres during the latter half of 2008. Although the forecast for 2009 promises more of the same, most markets are expected to weather the storm, says RE/MAX.

Housing market performance will clearly be contingent on economic performance at a local, provincial, and national level in 2009. Issues affecting the overall economy are impacting housing markets across the country and the situation is not expected to be remedied until consumer confidence is restored. If inventory levels remain stable, pent-up demand kicks into gear, and lower interest rates stimulate home-buying activity, we could see a bounce back as early as spring.

The RE/MAX Housing Market Outlook for 2009 examined residential real estate trends in 22 markets across the country and found that average price held up remarkably well in 2008, despite 13 centres reporting double-digit declines in home sales. Solid gains earlier in the year likely served to prop-up housing values at year-end. The prognosis for housing activity in the first six to nine months of 2009 is somewhat static, given continued volatility in financial markets and the threat of recession, but as stability returns, housing markets are expected to recover.

Nationally, 440,000 homes are expected to change hands in 2008, down 15 per cent from record 2007 levels. Canadian housing values are expected to hover at $300,000, a nominal three per cent decline from last year's historic peak. By year-end 2009, unit sales should match 2008 levels, while average price is forecast to fall another two per cent to $293,000.

Major markets are evenly split in terms of housing performance in 2009, with 11 centres forecast to match or exceed 2008 home sales and 11 expected to slide from 2008 levels. The highest percentage increase in unit sales is anticipated in Saskatoon, where the number of homes sold is forecast to climb three per cent in 2009. Housing values are expected to hold the line in 2009, with St. John's, Montreal, Kingston, London, Winnipeg, Saskatoon, and Regina posting modest gains in average price in 2009.

Canada's real estate environment is considerably more complex than it has been in recent years. The landscape is definitely changing -- with most markets shifting into either balanced or buyer's territory. The shut out is over. Sellers no longer rule the roost. Opportunities exist for purchasers like never before, including lower interest rates, greater inventory levels, the luxury of time to make decisions, and the upper-hand at the negotiating table. Motivated vendors will need to take note of the new mindset and set their prices accordingly.

Canadian sellers are slowly adjusting to new realities. For most markets, 2008 started in balanced territory and moved into buyer's market conditions during the latter half of 2008. The year ahead will prove challenging, especially for vendors.

While the economy will dictate real estate performance next year, it's important to remember that demand still exists in the marketplace. In the midst of stock market turmoil, sold signs continue to appear on lawns across the country. With affordable lending rates and increased selection, first-time and move-up buyers with good credit may choose to play their investment strategy safe and purchase a home. The comfort of a tangible investment like real estate goes a long way in tough times.

I also have a 24 page report outlining home sales and market conditions for various markets across Canada. If you are interested in receiving this information directly to your inbox, please contact me at lindsay@remaxaboutowne.com or 905.338.9000.

Regards, Lindsay

North Oakville Development Standstill

Thu, 27 Nov 2008 13:25:38 -0800

Halton Regional Council is considering putting a freeze on 40,000 new homes slated for development in North Oakville. Why do you ask? The region believes they are carrying a disproportionate amount of infrastructure costs associated with the growing Oakville population (ie: new hospital requirements and expanding transportation needs). Halton region unanimously passed council to ammend a clause in the North Oakville development plan that will allow them to freeze water and sewer pipe installation, in turn freezing development in North Oakville.

You can expect some healthy debate on this topic in the coming months. Final development application approvals will be sought in Spring '09. Government has until this time to debate the issue and confirm government spending levels. If the region disagrees, they can prevent the installation of sewer and water pipes, ultimately delaying development in North Oakville.

For more information on this topic see the following article published in the Toronto Star: Showdown Looms in Halton http://www.thestar.com/news/gta/article/540177

Attention Oakville Commuters…Life May Get a Little Easier…

Tue, 25 Nov 2008 00:05:37 -0800

Commuting is a real issue for many Oakville homeowners. I myself spent years driving over 2 hours a day so I know first-hand the impact that commuting has on quality of life. If you live in the west end (Lakeshore Woods, Bronte Creek, West Oak Trails, etc) or are thinking of moving to the West end of the city, here is some good news.

GO Transit recently announced that they have purchased 10 acres of land by the Bronte GO Station which they will use to create an additional 800 parking spots. Development of the land will be in two phases. The first phase calls for 400 spots to be available sometime in 2010, the remaining 400 additional spots will be developed thereafter. The current capacity at the Bronte GO is 1849 spots.

Interested in knowing the reason behind all the construction work you pass by every day? Here are the details on a few of the major construction projects underway in Oakville:

Project: Expansion of a 3rd rail track line between GO Transit's Port Credit Station to Kerr Street.
Objective: Allow for future GO Train service increases for Oakville, Burlington and Mississauga. Rush Hour train service is currently maximized with the current two track system.
Timing: Started Spring 2007; expected completion Summer 2009

Project: GO Transit Platform Extension at Port Credit, Clarkson and Oakville Stations
Objective: Increase the number of cars per train to alleviate over-crowding and accommodate growing demand
Timing: Port Credit extension (Complete), Oakville Station (Expected completion Winter 2009), Clarkson Station (Expected completion late 2010)
For more information on GO Transit improvements visit their GO TRIP website at www.gotransit.com/gotrip.

Project: QEW lane widening from 6 to 8 lanes. The new 8 lane extension will start east of Trafalgar Road and run to Burloak Drive. The additional East and West bound lanes will be reserved for High Occupancy Vehicles (HOV) carrying more than one passenger. Approximately 165,000 drivers use this section of the highway daily.
Objective: Reduce congestion, enhance safety, support the local economy and promote carpooling.
Timing: Construction commenced Summer 2007; Expected completion time is Summer 2011.
For more information on the Ministry of Transportations Construction projects, visit their website at http://www.roadinfo.mto.gov.on.ca/

Project: Dundas Street Widening 4 to 6 lanes from Oak Park Blvd to West of Hwy 403
Objective: Decrease traffic congestion in the area
Timing: Start construction in 2009

After much discussion it is nice to see these large transit projects underway. It may not make your commute disappear but it is a whole lot easier to swallow when you are moving faster than 15km/hour.

Happy commuting!

Protecting Your Largest Asset During Economic Uncertainty

Tue, 25 Nov 2008 00:04:46 -0800

It is only natural to question your home investment during times of economic turbulence.

While newspapers and TV broadcasts report on national and global findings, real estate conditions vary from community to community. We are certainly not experiencing a sub-prime mortgage crisis similar to the U.S. but we also don't live in a bubble. So how exactly do you determine the impact on your own home? Simply put, you need to be armed with local real estate knowledge.

Like the rest of the GTA, Oakville has enjoyed a sellers market for several years with record housing prices, high turnover and quick sales. Many sellers found themselves in multiple offer situations. What we are now seeing is a return to a more balanced market meaning better buying opportunities, lower demand and longer turnaround times for homes listed for sale.

The softening economy is slowing down real estate sales but underlying market fundamentals remain strong. Historically, Oakville home values have weathered well even in recessionary times. Oakville's proximity to major urban centres within the Golden Horseshoe make it a desirable location for commuters. Combined with its reputation for great schools, community programs and community feel, Oakville will
remain a desirable place to live for many years to come.

Despite what many believe, Oakville home prices have actually increased on average by 8.18% in 2008. By comparison, in 2007 which is considered by most as an extremely strong year, the average Oakville home rose 4.72%.

The biggest difference in 2008 has been a 15% reduction in the level of housing inventory. Historically low interest rates and positive returns have encouraged many people to buy and sell real estate over the past several years. As the economy softens housing inventories in Oakville are returning to more historical levels.
If you are planning to buy or sell your home the best advice I have is to speak with a local real estate professional. As a RE/MAX sales representative, I live and breath the Oakville real estate market every day. I have access to local market statistics and will advise how best to prepare your home for sale, price your home for maximum dollar and attract qualified buyers. Simple steps make a big difference in the successful purchase or sale of property.

Even in softening markets, homes that are prepared properly, priced correctly and advertised effectively enjoy large returns and quick sales.

The selling process should be both a profitable and rewarding experience. I keep this in mind at all times, measuring my ultimate success on my clients' satisfaction. If you are interested in selling your home and would like a free market evaluation of your property, please contact me at 905.338.9000 or
lindsay@remaxaboutowne.com.

All the best,
Lindsay

Northward Bound - Shaping Oakville Development Plans

Tue, 25 Nov 2008 00:01:04 -0800

With great schools, safe neighbourhoods, diverse economic opportunities and a great standard of living, it is not surprising that Oakville's population is expected to grow approximately 40% in the next 15 years. The challenge for the Town of Oakville is to control the growth in a manner that maintains or increases Oakville's desirability. The recently approved North Oakville Secondary Plan was designed to do just this.

"North Oakville" is the largest (and one of the few remaining) undeveloped stretches of land in Oakville. It is bordered by the area North of Dundas Street, South of Hwy 407 West of Ninth Line and East of Sixteen Mile Creek. It is the largest development plan currently underway in the Province of Ontario.

After more than 5 years of planning, the Town of Oakville approved the North Oakville Secondary Plan in January 2008. Highlighted below are some key facts on the area:

The area will contain 1500 acres of green space which will create North Oakville's natural heritage system. To put it in perspective, North Oakville's green space will be more than twice the size of Manhattan's Central park and is larger in scale than Vancouver's Stanley Park. The community's goal is to be the cornerstone of the most environmentally sensitive new community in North America.
Trafalgar Road just North of Dundas Street will be developed as a trendy uptown development with restaurants, shops and boutiques similar in style to Oakville's downtown Lakeshore Road area.
Development is planned to encourage pedestrian traffic and provide easy access to public transportation. North East Oakville will be comprised of 14 unique neighbourhoods, each with a broad range of housing opportunities ranging from executive housing on large lots to high rise apartment and condominium buildings. An extensive walking trail will link the different neighbourhoods together.
Area is targeted to attract approximately 50,000 new residents and 25,000 new jobs over the development span of 15+ years. A business park located along Highway 407 will contain prestige office space.
"North Park", a state of the art sports park including an arena, soccer fields, cricket pitch, leash free dog zone, skateboard facility, splash pad, playground and other park amenities began construction this summer. It will be located just west of Neyagawa Blvd, North of Dundas Street. Phase 2, scheduled for development in 2015 will include a community centre and library centre. Phase 3, scheduled for development in 2018 will include outdoor sports fields.
Planning for a new state of the art Hospital at 3^rd Line and Dundas Road is well underway. Construction is anticipated to commence in 2010; occupancy is expected in 2013. A Master Plan is currently in development to confirm hospital size and services however it is expected to take into account future needs and population growth.
Mattamy Homes is the area's largest land owner. It is anticipated that the first new homes will be available in 2011/2012. Construction in the area is expected to commence in the next couple of years.
North Oakville East has been divided into two areas that will be known as "Joshua's Meadows" and "Glenorchy". A Plan for North Oakville West is currently under review by the Town of Oakville. This area will be known as "16 Hollow" and "407 West".

Everything that I have read and heard suggests that protecting Oakville's spirit and sense of community is at the very heart of North Oakville's development plans. I am comforted knowing that the Town of Oakville recognized the need to take their time to develop a plan that will benefit existing residents and attract new ones to the area. It is one of the many reasons I love practicing real estate in the area. For more information on the North Oakville Secondary Plan, visit the Town of Oakville's website at www.oakville.ca or clink on this link for direct access to the plan http://www.oakville.ca/Media_Files/planning08/Final_approved_North_Oakville_East_Secondary_Plan.pdf.

As always, I encourage your feedback. To leave your opinion or ask a question about North Oakville or other real estate opportunities, please contact me at lindsay@remaxaboutowne.com or 905.338.9000.

Reduce Energy, Reduce Costs, Sell Your Home Faster

Mon, 24 Nov 2008 23:57:53 -0800

Calculate the Energy Efficiency of Your Home ... and get an edge on your neighbour

Falling victim to rising energy costs? Thanks to a new energy assessment initiative, you can now find out exactly how energy efficient your home is. For a cost of $150 ($300 total cost less $150 Ontario Government Rebate), a licensed or independent energy advisor will perform a residential energy assessment to identify how your home uses energy and where it is being wasted. You will be given a report detailing where your energy dollars are being spent and what you can do to reduce costs. Your home will also receive an energy rating label comparing it to similar homes in your area. This service is brought to you by Natural Resources Canada, Office of Energy Efficiency.

Should you choose to make some or all of the recommended energy retrofits made by the assessor, a new energy label will be applied against your home and you could qualify for a grant of up to $5000 from the Government of Canada. If you are thinking of selling your home or starting a new renovation project, I highly encourage you to take advantage of this program.

You benefit from reduced energy costs and when the time comes to sell, having a lower energy rating label versus your neighbours is a great selling feature for prospective buyers. With rising energy costs and environmental awareness, creating an efficient home will also help create a saleable home.

Please click on the link below to learn more about this great program at the Office of Energy Efficiency of Natural Resources Canada http://oee.nrcan.gc.ca. As always, contact me at lindsay@remaxaboutowne.com or 905.338.9000 to discuss how to get the most of your buying/selling experiences.

Regards,