Muskoka Real Estate

Muskoka Real Estate Listings - Power of Sales

Sasha Dear (Royal LePage Lakes of Muskoka) — Thu, 05 Jan 2012 15:39:12 -0800

As we enter 2012, we are seeing alot more homes being sold by the bank.

Homes that have been repossessed by the lender because the owners failed to pay the mortgage are foreclosures, or power of sales. Thousands of homes end up in foreclosure every year. Many people lose their homes due to job loss, credit problems or unexpected expenses.

It is wise to be cautious when considering a foreclosure. It is important to have the house thoroughly inspected and to be sure that any liens, undisclosed mortgages or court judgments are cleared or at least disclosed.

When you are ready to make an investment into a foreclosure property, I can put my expert knowledge to work for you.

Muskoka has seen an increase in Power of Sale homes over the last few years. These Muskoka real estate listings are generally sought after by investors who wish to fix up and flip (resell) quickly, or first time home buyers who are prepared to buy a Muskoka property that needs a little tlc.

There are various elements to consider when looking for a Power of Sale home in Muskoka, so it is wise to have a detailed conversation with your Muskoka Real Estate Agent.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Frustrated Seller sent me this email...please read

Sasha Dear (Royal LePage Lakes of Muskoka) — Sun, 10 Jul 2011 19:12:34 -0700

I recently received an email from a frustrated home seller. He found my ‘Ask-An-Expert’ section on my Muskoka Real Estatewebsite when searching for advice on selling his Muskoka home.

He told me that he has his beautiful home listed with another Agent, and is wondering why it is taking so long to sell. He has had numerous viewings and open houses, and made a few price adjustments, but after nearly 2 yrs on the market, still no offer.

Here is his email to me, with supporting pictures. Please take a look at this and give your opinion...

“Dear Sasha,

I have been trying to sell my home for the past 2 years now! To say I am frustrated with the whole situation is an understatement. My Agent gave me some pointers and suggestions just before we listed, and I did what was asked of me. He suggested that we make the house more ‘child friendly’, as it was likely that the potential buyers would have young kids. He also told me that in order to promote the listing well on the internet, that we should draw focus on ‘features’ of the home in pictures.

My Agent also pointed out that we should try to promote the age of the house on the outside by giving it more character, while modernizing and upgrading the inside. Apparently, this is what potential buyers now look for when buying a home. I have included some pictures for you, with details of the work that I have put into the home....

To appeal to families with small kids, I thought they would appreciate knowing that their kids would not be able to lock themselves in the bathroom.

Also, as an added bonus, I installed a kid-size handrail at the main entrance.

For 'features' I tried to work with what I have.

In the home-office I simply just had to place the computer in the middle of the room in order to 'draw focus'.

I even came up with an idea of my own! To impress the guys who 'want-it-all' I installed a plug in the shower so that they can shave too!

To make the house look a little more up-to-date, I installed those wood and glass doors that everyone seems to be raving about......

And to add more 'character' to the outside, I made some improvements to the windows .....

I can honestly say, without prejudice, that I do not know where the problem is! Oh...I forgot to mention....

During the course of the listing being on the market, my wife and I had a terrible break-up. No matter what I did to help try to make our home more 'sellable', she just kept nagging me and telling me that I had no idea what I was doing! I'm sure you understand that there is only so much of that kind of talk that a man can take, so I made changes to the front door so that she was no longer able to live with me.

This has caused a few minor issues when buyers have wanted to come view the house inside, but I told my Agent that I would leave the window open for them.

I am BEGGING you to tell me what else I can possibly do to help sell my home!!! Thanks in advance for your time."

Disclaimer: the contents of this post is purely fictional, apart from the pictures that are very real!

I hope you enjoyed taking the current frustration with market conditions to a momentarily humorous level.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Cottage Sales Down in Bracebridge Muskoka

Sasha Dear (Royal LePage Lakes of Muskoka) — Wed, 06 Jul 2011 12:22:09 -0700

Last year January 1st 2010 to July 1st 2010 there were 20 waterfront cottage sales in Bracebridge.

This year January 1st 2011 to July 1st 2011 there have been 13 waterfront cottage sales in Bracebridge.

Thats a 35% drop in waterfront cottage sales for the Bracebridge area.

As of July 5th 2011 there are currently 45 waterfront cottages for sale in the Bracebridge area. Based on the fact that there were a total of 43 waterfront cottage sales for 2010, and the 35% drop in sales so far for 2011, this indicates that out of the 45 waterfront cottages that are currently for sale…only 15 of them will be sold in the remainder of 2011.

This is what we call a Buyers Market, when there are far more properties available than there are Buyers. This also means that as a Seller, you must become competitive with the how you present your cottage and be careful to set a realistic asking price.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Clarity on new Mortgage Rules Canada

Sasha Dear (Royal LePage Lakes of Muskoka) — Wed, 06 Jul 2011 12:04:21 -0700

Mortgage rules changed this year, causing some confusion for homebuyers and homeowners.

For homebuyers, the biggest change is a reduction in the amortization period - the amount of time after which, if all monthly payments are made on time and in full, the mortgage loan will be repaid.

Under the changes, the maximum amortization period was decreased to 30 years from 35 years for all new government-backed insured mortgages. A shorter period for repayment will mean that your mortgage payments will be greater. However, this shorter period means your mortgage will be paid off faster and you will save on interest.

Generally, if you are just setting up your mortgage, it's a good rule to go for a short amortization and not be tempted by the longest amortization possible. A longer-term obligation may seem appealing, as it will leave you with more cash in hand each month. However, if you seek out the shortest amortization schedule you can afford, you will pay down your mortgage faster and incur less in interest charges. Ask your Mortgage Broker for advice on what strategy would be best for you.

For existing homeowners, the recent regulations do not cause any change in your existing mortgage. However, the biggest change is in the amount you can borrow against your home for refinancing. The maximum amount Canadians can borrow in refinancing their mortgages has been reduced to 85 per cent of the value of their homes, down from 90 per cent.

This is the second time in two years that the refinance limit has been tightened. In April 2010, it was reduced from 95 per cent of the value of your home to 90 per cent, and, with the latest reduction, this means a ten-percentage-point reduction in the amount you can borrow against your home.

This will mean you can borrow less against your home for things such as investing for retirement or for renovations. It may also mean that you will have to revisit your long-term financial plan - or explore other financing routes. A qualified financial adviser may be able to help.

While the recent rules will make home financing more difficult in some circumstances, in theory these changes should make for lower debt levels over time and could provide consumers with an incentive for more prudent financial management.

Article provided in part by ScotiaBank

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Open Houses. Do They Work?

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 27 Jun 2011 10:51:03 -0700

If you are asking if an open house will help sell your home, then my answer is "unlikely".

Before the Internet boom (before the majority of people turned to the Internet to find their next home), people relied on printed MLS books, newspaper listings, Real Estate magazines, and driving around their desired neighbourhoods to find open houses. Back in those days (before 1995), open houses were an effective way to help sell a home. The people who entered the open house were actually ‘likely buyers' who were in the market to actively search for a home to purchase.

What we see nowadays though, is a trail of nosey neighbours and week-end tire-kickers who want to get decorating ideas or just want to compare your home with theirs so that they can imagine up a value for their own.

So why are open houses still held?

There is still a VERY slim chance that the person who enters the open house will in-fact buy it (based on the opinion of at least 50 Real Estate Agents questioned in the Toronto, Barrie and Muskoka areas, the response is about a 2% chance)
The Seller may not believe, or has not been educated about the way in which buyers now purchase a home, and the Agent holds it to satisfy the Sellers demands.
The Agent wants to draw in potential Buyer and Seller Clients, and this is a great way to meet new Clients.

The majority of Buyers, about 96%, now look at the Internet when searching for a home. Real Estate Agents look on the Internet within their own system, and email or call their Clients when suitable homes become available. The Real Estate Agents own system is the one that feeds the public realtor.ca website. Most real estate boards have now stopped issuing the printed MLS books.

In short, if your home or cottage looks like it may be suitable for someone, then they will make AN APPOINTMENT to come view your listing. Those are the type of people who you really want looking around your home!

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

iPhone App for Muskoka Real Estate

Sasha Dear (Royal LePage Lakes of Muskoka) — Thu, 23 Jun 2011 12:57:27 -0700

Available for FREE download from the iTunes Store. Just search for Muskoka and the MuskokaRealty App will display. This App gives you access to current real estate listings in Muskoka and surrounding areas. All information contained in this app is up-to-date in 'real time'.

What better way to search for real estate listings in Muskoka, or to be kept up to date on Muskoka news!

Statistical publications show a huge success in mobile internet applications. In fact, experts predict that by 2014, mobile internet users will far outweigh desktop users.

iPhone Applications still out-weigh any other systems apps, but Android is currently a strong competitor. The Muskoka Real estate App will soon be available for Android.

Go to the iTunes Store or get linked directly from Here! to view the Muskoka Real Estate App information.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Marketing Your Home For Sale

Sasha Dear (Royal LePage Lakes of Muskoka) — Thu, 23 Jun 2011 11:26:03 -0700

I went to a Home Exhibition. There were two exhibitors 'selling' the same product. One of them placed a fake glass of beer on their display. This exhibitor attracted at least 10 times more potential consumers to their display than their competitor. I am not suggesting that you place a glass of beer in your pictures when selling your home or cottage...but I do suggest you pick a Real Estate Salesperson who knows how to take marketing your listing to a higher level. Contact me for details ;)

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Muskoka River Cottage For Sale

Sasha Dear (Royal LePage Lakes of Muskoka) — Thu, 23 Jun 2011 11:18:04 -0700

Beautifully renovated cottage on extensively landscaped grounds with access to Lake Muskoka. Open concept kitchen/dining/living and 3 bedrooms. Refinished hardwood floors, new broadloom in bedrooms, roof shingles 2009, renovated kitchen and bathroom. Cottage built well, with good insulation and extra steel support beams. Spring fed well allows option to use year round. Freshly painted inside and out, and some newer windows. Includes a well pump house, large utility shed, dock shed. Can be sold `turn-key` if desired! Just move right in!Located on quiet inlet off the Muskoka River. Access for medium motorized boat at own dock. Boat to Lake Muskoka or just sit and enjoy the tranquil scenery. If you are looking for privacy, then this location is perfect! Click here for more pics

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Parry Sound Century Home on River

Sasha Dear (Royal LePage Lakes of Muskoka) — Thu, 23 Jun 2011 11:11:57 -0700

This Century home offers plenty of space for family and entertaining! Full of unique re-finished original features, you will enjoy a beautiful character home with modern living in mind. Ideally located close to downtown boutique shopping and amenities, this home sits on a deep lot with the peaceful Seguin River at back. New roof shingles 2010 plus new flooring in bedrooms, newer furnace and windows. Original hardwood floors refinished beautifully. Bonus Loft Room large enough for rec/play/study/living room. Large rear covered deck/porch overlooking fenced level yard and gentle slope to river. Move-in condition. Click here for more pics $259,900

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Find better ways to heat and cool your house

Sasha Dear (Royal LePage Lakes of Muskoka) — Wed, 30 Jun 2010 10:23:53 -0700

As much as half of the energy used in homes goes toward heating and cooling. The following are a few ways that energy bills can be reduced through adjustments to the heating and cooling systems:

Install a ceiling fan. Ceiling fans can be used in place of air conditioners, which require a large amount of energy. This depends on where you live, as some areas are extremely hot in summer months. Simply reducing the degree of coldness will help.

Periodically replace air filters in air conditioners and heaters. It can be hard to remember when this should be done. Set an alarm on your calander to remind you.

Set thermostats to an appropriate temperature. Specifically, they should be turned down at night and when no one is home. In most homes, about 2% of the heating bill will be saved for each degree that the thermostat is lowered for at least eight hours each day. Turning down the thermostat from 75° F to 70°F(24c to 21c), for example, saves about 10% on heating costs.

Install a programmable thermostat. A programmable thermostat saves money by allowing heating and cooling appliances to be automatically turned down during times that no one is home and at night. Programmable thermostats contain no mercury and, in some climate zones, can save up to $150 per year in energy costs.

Install a wood stove or a pellet stove. These are more efficient sources of heat than furnaces. Wood or pellet stoves can actually heat the house without the need for using the furnace in most cases.

At night, curtains drawn over windows will better insulate the room, especially if you have single pane windows.

Thankyou to Greg Thomson with Buyer's Choice Home Inspections in Muskoka for contributing towards this article on how to make our homes more energy efficient.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Private Island with lake house for sale

Sasha Dear (Royal LePage Lakes of Muskoka) — Wed, 23 Jun 2010 21:13:38 -0700

Potato Island (Island 71) in Georgian Bay consists of more than 38 acres and 4000 ft of usable waterfront. Part beach, part rock, part mixed forest, both deep and shallow water, ideal for boating and swimming. Island is accessible by private road, water, and float plane.

Located in South Muskoka, just 1.5 hours north of Toronto, close to golf course, trails, and only 5 minutes to major waterways.

Private Island Estate currently has a 5 bedroom, 4000sqft lake house, 2 x 600sqft sleeping cabins with 2 bedrooms each, 3 docks, and zoning permission for building up to a 10,000sqft home if desired.

Offered at $4,500,000 CAN

Contact me for detailed information.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Fix her up!

Sasha Dear (Royal LePage Lakes of Muskoka) — Wed, 16 Jun 2010 18:10:40 -0700

Looking for a great fixer-upper? This 5 bedroom home is being sold under power of sale in an "as is" condition. This one is priced right to fix up and flip! Located near Utterson, Muskoka, just 10 minutes outside of Bracebridge, and on a large treed lot.

Family house for sale in Utterson. Close to Bracebridge and ammentities. Large country lot. Handy man or woman needed! $127,900

Family room	Lower level	14'6 X 14'6
Bedroom	Lower level	12 X 7'8
Bath (# pieces 1-6)	Lower level	1 X 2 PC

Living room	Main level	16 X 12'2
Dining room	Main level	16 X 8'3
Kitchen	Main level	14'6 X 14'6
Master bedroom	Main level	16 X 10
Bedroom	Main level	10 X 10
Bedroom	Main level	10 X 9'10
Bedroom	Main level	15'8 X 11'8
Bath (# pieces 1-6)	Main level	1 X 4 PC

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Be Nice To The Locals

Sasha Dear (Royal LePage Lakes of Muskoka) — Tue, 25 May 2010 16:21:26 -0700

Planning your weekend away at the 'cottage' can be so much fun! You spend your work day thinking about it...and "can't wait till Friday" when you make the 2-3 hour journey north to the peace and tranquility of Muskoka surroundings. BBQ's, boat rides, bonfires and partying with friends and family!

You are nearly there! Just need to stop into the local store to buy supplies. OOOPPS! Somewhere between stepping out of your car and stepping into the store, your decency and respect disappears!

You are in such a rush to get to the cottage that you forget to...slow down...take in the surroundings...be nice!

At the check-out, a local woman is not performing her job to your liking. She is being chatty with the customer in front of you. She is moving slower than you desire. She does not understand that you are urgently trying to get to the cottage so that you can finally take things slower yourself.

You are so angered by her deliberate relaxed and friendly attitude that you tell her to "Hurry the hell up". You then turn to the customer in front of you and say "Can't you people do your shopping during the week, and leave the weekend shopping for us?"

Does this sound familiar? Is this YOU?

Do you not realize that...

These people are full time residents in an area that you are simply 'visiting'.
You should adjust your tempo to suit the surroundings.
These people are doing YOU a good turn by making their services available to you, as much as you are helping them survive. It's a two way thing, and not all about YOU
Rudeness is not acceptable anywhere at any time.
If you could...you too would probably chose to be a full time resident in the area that you love to spend your free time. You too would be one of those 'people'.

Are you so jealous of their day by day lifestyle (living where you can only vacation) that you feel it's ok to express it?

Or do you honestly believe that as soon as you leave 'the big city', common rules of society and social behaviour goes out the window?

Or perhaps you just think that 'people' who live 'up north' are mindless redneck idiots who are not worthy of respect?

This blog goes out to those of you who have, at one time or another, been rude to the locals. Please stop. I have heard so many of these stories from so many local business owners. They are not the problem...YOU ARE!

Make Summertime a great season for everyone! Thankyou!

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Please SLOW DOWN!

Sasha Dear (Royal LePage Lakes of Muskoka) — Sat, 22 May 2010 19:28:52 -0700

Standard issue maximum speed limit signs do not work. Flashing speed trap signs work on those with a conscience. Police speeding tickets work on so few. So here is my attempt to slow you down...

15 years ago, a small community was so perplexed with the amount of drivers who chose to speed through their neighborhood, that they put up large billboard type signs. It had the desired effect, and greatly reduced the amount of speeders.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Spring Cleaning au naturel

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 10 May 2010 19:09:03 -0700

Let Spring Cleaning Come Naturally

Did you know that your home can sparkle this spring without using any chemicals? Choose from a wide array of eco friendly cleaners on the market or simply make your own with household ingredients such as vinegar, baking soda, and lemon juice. Here are a few tips to help you become a natural when it comes to spring cleaning:

The Bathroom
Want to bring out a natural shine to your sinks, toilets, and tubs? Create a gentle scouring paste by mixing 4 tbsp baking soda with 1 tbsp water. Generously sprinkle either table salt or baking soda into the sink or tub and use the cut end of half a fresh lemon as a scrubby-pad. Rinse with hot water and your ceramics will be gleaming! Undiluted lemon juice can also be used to dissolve soap scum and hard water deposits.

The Kitchen
Vinegar, a natural antibacterial, has a high acid content which makes it an effective alternative to caustic cleaners for the kitchen. Mix together 1 part water to 1 part vinegar in a new spray bottle and you have a natural solution that will clean stovetops, appliances, countertops (except marble), and floors. For troublesome stains, add a touch of baking soda to the mix.

To help remove finger marks from stainless steel appliances use a microfibre cloth or try a dab of baby oil on a clean cloth. For microwaves, put a few slices of fresh lemon in an uncovered bowl of water and cook on high for about three minutes. Grease and dirt should wipe away easily.

Windows
Let the sunshine in by washing away winter's grime. Fill a bucket with 25 per cent vinegar and 75 per cent warm water. Put on rubber gloves and soak an old cotton towel in the solution. Rub on windows, and then scrunch up some old newspaper to buff up a shine. If there are any streaks, simply finish off with a dry cloth.

Fabrics and Carpets

Have a stubborn fabric stain? Dab white vinegar onto the stain followed by a mild soap solution such as all natural dishwashing liquid and water. Rinse with a clean damp cloth and blot with a dry towel. Salt can also be used to soak up fresh carpet stains such as red wine, coffee or ink. Simply pour salt on the wet stain, let dry, and then vacuum. Natural ingredients can not only get rid of stains, they'll help eliminate odours from fabrics too!

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

HST

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 10 May 2010 19:01:23 -0700

As of July 1st 2010 there will be a new tax in Ontario Canada. The HST is a combined GST and PST giving a 13% tax payable on certain products and services. For the Real Estate market, the following applies:

For new build homes

HST applies to the overall cost of home. Most builders have already applied this tax in their asking prices.

For resale homes

HST applies to services only. For example...Real Estate fees, lawyers fees.

The following is published Questions/Answers about HST which gives a detailed explaination.

Question 1 - What is the HST?

Answer

The Harmonized Sales Tax (HST) is the harmonized value-added tax that will replace the federal Goods and Services Tax (GST) and Provincial Sales Taxes (PSTs) in Ontario and British Columbia (BC) on July 1, 2010.

The HST will apply at a rate of 13% in Ontario and 12% in BC to taxable property (includes goods, intangible personal property such as licensed software, and real property) and services.

In other words, the PST will be eliminated and an 8% or 7% provincial rate will be added to the 5% GST. This combined tax at the rate of 13% in Ontario and 12% in BC will be called the HST.

Question 2 - Will HST apply to the same things as the GST?

Answer

In general, property (i.e., goods, intangible personal property such as software and real property) and services that are taxable for GST purposes will become taxable for HST purposes. REALTORS® services, sales of new homes and sales and leases of commercial property will be subject to the HST in Ontario and BC.

However, point of sale rebates will be available for the provincial portion of the harmonized tax on certain specified consumer goods. Although there is GST on these items, the provincial portion of the HST will not apply (i.e., you will not pay the Ontario or BC portion of the tax).

Question 3 - What is the difference between taxable, zero-rated and exempt sales?

Answer

Under the GST and HST, there are three different ways that property and services are treated: they are taxable, exempt or zero-rated.

a) Taxable

Most property (i.e., goods, intangible personal property such as software, and real property) and services are taxable, which means that HST is charged on the sale, lease or rental of those items.

Businesses, such as REALTORS®, are providing taxable services. They would be required to charge and collect HST on their services performed in Ontario or BC on or after July 1, 2010. GST/HST registered businesses that make taxable sales are able to recover the GST/HST they pay in the course of their taxable activities (also referred to as "commercial activities") by claiming input tax credits (also referred to as "ITCs").

Examples of taxable sales include new home sales, commercial real estate sales (and leases), and sales (and leases) of cars and furniture.

2 March 19, 2010

b) Zero-rated

Zero-rated sales are taxable, but at the rate of 0%.

GST/HST registered businesses making zero-rated sales can claim input tax credits to recover the GST/HST they pay in the course of making zero-rated sales.

Examples of zero-rated sales are basic groceries, prescription drugs, medical devices and exports.

c) Exempt

Certain specified sales are exempt from GST/HST. Businesses making exempt sales do not charge and collect GST/HST.

Unlike zero-rated sales, businesses making exempt sales cannot claim input tax credits to recover tax paid on inputs used in making these sales.

Examples of exempt sales include medical services, financial services, long-term residential rental accommodation, child-care services and educational services.

Question 4 - What are input tax credits?

Answer

Under a harmonized sales tax, GST/HST registered businesses are able to claim input tax credits for the HST they pay on costs relating to their taxable activities (also referred to as "commercial activities"). GST/HST registered REALTORS® will generally be entitled to input tax credits.

Under an HST system, businesses making taxable or zero-rated sales can deduct input tax credits from the total amount they collect from customers. The result is that these businesses do not end up paying unrecoverable HST.

If the business pays more in HST than it collects from its customers, it can claim a refund.

For example, a REALTOR® will pay HST on business costs including office lease payments, office supplies and equipment. The REALTOR® will also have to charge HST on commissions (Please refer to Question 5).

If the REALTOR® pays $100,000 in HST on the goods and services it uses to provide services and collects $250,000 in HST from its customers, it will remit $150,000 to the government. So, effectively, the REALTOR® recovers HST on its purchases.

For HST purposes, large businesses are restricted from claiming input tax credits for the provincial portion of the HST on certain purchases. For additional information on restricted input tax credits, please refer to Question 6.

3 March 19, 2010

B. Impact of the HST on REALTORS®

Question 5 - Does HST apply to REALTORS® services?

Answer

Yes. HST will generally apply to the same tax base as the current GST. Also, GST registered REALTORS® will be automatically registered for the HST. As a result, REALTORS® will apply HST on the fees for their services that are currently subject to GST.

GST/HST registered REALTORS® will need to take into account the province in which their services are performed and the timing of their services during the transitional period for purposes of determining whether GST or HST applies.

a) Place of Supply

REALTORS® services are considered to be "in relation to" real property for purposes of the GST/HST legislation.¹A supply of a service made in relation to real property is deemed to have been made in the province where the real property is located. For example, Ontario HST will apply to a REALTORS® commission for services in relation to a house sale in Ottawa, Ontario.

b) Transitional Rules

The transitional rules explain how HST will apply to transactions that straddle the start-up date. For purposes of the following discussion, it is assumed that a REALTORS® commission becomes due or is paid when the property is sold or leased.

The HST would generally apply to a REALTORS® services to the extent, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90% or more of the services are performed before July 1, 2010, the HST will not apply.

For example, a REALTORS® services are performed from June 1, 2010 to July 2, 2010 with the sale of the property closing on July 2, 2010. The REALTORS® commission becomes due at the time of closing. More than 90% of the REALTORS® services were performed before July 1, 2010. In these circumstances, the GST at the rate of 5% will apply to the REALTORS® services.

In another example, a REALTORS® services are performed from May 1, 2010 to July 31, 2010 with the sale of the property closing on July 31, 2010. The REALTORS® commission becomes due at that time. In this case, 2/3 of the services were performed from May 1, 2010 to June 30, 2010 and 1/3 of the services were performed from July 1, 2010 to July 31, 2010. The REALTOR® will charge GST on 2/3 of the amount charged for the services and HST on the remaining 1/3.
^{1
on March 11, 2010

4 March 19, 2010

Question 6 - Will REALTORS® recover the HST they pay on their costs?
Answer
Yes. GST/HST registered REALTORS® will generally be able to claim input tax credits for the HST paid or payable on their purchases for consumption or use in their taxable activities.
However, large businesses (with annual taxable sales exceeding $10 million) will be unable to claim input tax credits for the provincial portion of the HST relating to:
• energy (except where used to produce goods for sale);

• telecommunication services, except internet access and toll-free numbers;

• road vehicles weighing less than 3,000 kilograms and related fuel and certain repairs; and

• meals, beverages, and entertainment.
This restriction does not apply to public service bodies (i.e., schools, hospitals, public colleges, universities, municipalities, charities and non-profit organizations).
After the first five years of HST implementation, full input tax credits on taxable purchases made by large businesses will be phased in over three years. Accordingly:
Certain REALTORS®, with total annual revenues (including GST/HST) of $200,000 or less, may be using a simplified method to calculate their net tax payable; the Quick Method. There are special rules that may require REALTORS® using the Quick Method to self-assess the provincial component of the HST when prepaying for property or services after October 14, 2009 and before May 2010. REALTORS® using the Quick Method should be aware of these rules if any prepayments are made during this time period.
GST/HST registered REALTORS® in non-HST provinces, such as Alberta, Saskatchewan, Manitoba, Quebec and Prince Edward Island, will also be entitled to claim input tax credits for HST incurred on purchases in an HST province. However, the input tax credits would remain subject to the restrictions for large businesses.
•

in the sixth year, a business that had been subject to the restrictions would be able to claim a 25 per cent input tax credit on the restricted items;
•

in the seventh year, the business would be able to claim a 50 per cent input tax credit;
•

in the eighth year, the business would be able to claim a 75 per cent input tax credit; and
•

in the ninth year, the business would be able to claim full input tax credit s (only with respect to inputs used in its commercial activities).
Question 7 - Does HST apply to prepayments for property to be delivered or services to be performed on or after July 1, 2010?
Answer
Yes. A GST/HST registered supplier may be required to charge and collect HST on a prepayment that is due or paid on or after May 1, 2010 for property (e.g., an equipment sale) or services to be performed (e.g., legal services) on or after July 1, 2010.
5 March 19, 2010
If you are required to pay HST before July 1, 2010, you must track the HST payable in order to claim the provincial portion of the HST in your GST/HST Return for the reporting period that includes July 1, 2010. If you are a monthly filer, this means you would claim the provincial portion of the HST in your GST/HST return for July that is due at the end of August 2010.

Question 8 - Will REALTORS® be compensated for collecting and remitting the HST?
Answer
Businesses will not be compensated for collecting and remitting the HST. However, to support small businesses, Ontario will provide one-time transitional assistance to small business in the form of a transitional credit. REALTORS® with less than $2 million in annual revenue from taxable sales will be eligible for the Small Business Transition Credit of up to $1,000.
British Columbia is not providing similar assistance.

Question 9 - Who administers the HST and how do I report the HST?
Answer
The HST will be administered by the federal government in the same way that the federal government now administers the GST and the HST in other HST provinces. Specifically, the HST will be administered by the Canada Revenue Agency (CRA).
The HST collectible and HST payable in a reporting period are reported on your regular GST/HST Return. If the GST/HST collectible in a period exceeds the GST/HST payable in the reporting period, the net GST/HST would be remitted in the usual manner that you currently remit GST.
The CRA announced in a News Release and Backgrounder on January 4, 2010, entitled, "Government of Canada Announces New Electronic Filing Requirements for GST/HST Registrants" that GST/HST registrants who are subject to the input tax credit recapture requirement, businesses with over $1.5 million in sales and certain builders of new homes are required to file their GST/HST Returns electronically beginning July 1, 2010. Reference may also be made to CRA Notice 249, "Questions and Answers on the New Reporting Requirements for GST/HST Registrants."

Question 10 - What do REALTORS® need to begin thinking about to be ready for HST?
Answer
REALTORS® should begin to prepare now in order to be ready for the July 1, 2010 implementation date. For example, the following items may be affected by harmonization:
• the tax clauses of real estate listing agreements, co-operating broker/agent agreements and other sales and/or purchase agreements;

• sales and receivable systems;

• purchasing and payable systems;

• expense reports; and

• Quick Method GST/HST calculations.
6 March 19, 2010
REALTORS® should also consider a strategy for communicating with clients and future clients on the impact of harmonization. Finally, REALTORS® should plan for significant purchases during transition to reduce unrecoverable sales tax (e.g., deferring PST taxable purchases).

C. HST Application to Real Estate Transactions

Question 11 - What is the general impact of HST on real estate transactions?
Answer
The HST treatment of real estate transactions will generally follow the current GST treatment of real estate transactions.
Sales of new residential housing will be subject to HST and will qualify for GST, HST, and transitional rebates (subject to certain thresholds and maximum amounts). Sales and rentals of commercial real property will be subject to HST.
On the other hand, sales of used residential housing and long-term rentals of residential housing will be exempt for HST purposes.

Question 12 - How will the HST apply to leases and licenses of real property, other than long term residential rents during transition?
Answer
Ontario and BC released general transitional rules for HST. The transitional rules generally work in the same fashion for both provinces.
The HST will generally apply to a supply of real property by way of lease, license or similar arrangement to the extent, expressed as a percentage, the amount paid relates to a period (e.g., lease period) that occurs on or after July 1, 2010. However, periods that begin before July 2010 and end before July 31, 2010 will not be subject to HST.
For example, a lease payment is due on July 1, 2010 for the period July 1 to July 31, 2010. HST will be applicable on the entire lease payment.
In another case, a lease payment is payable on June 1, 2010 for the 3 month period of June 1 to August 31. In this case, GST will apply to the portion of the payment relating to June (i.e., one third) and HST will apply to the portion of the payment relating to July and August (i.e., two thirds).

Question 13 - How will the HST apply to sales of real property, other than residential housing, during the transitional period?
Answer
Ontario and BC released general transitional rules for HST. The transitional rules work in the same fashion for both provinces.
7 March 19, 2010
The HST will generally apply to a sale of real property (other than residential housing) if both ownership and possession are transferred on or after July 1, 2010.

Question 14 - How does the HST apply to sales of new residential housing during the transitional period?
Answer
On June 18, 2009 Ontario released transitional rules for the application of the Ontario HST to sales of residential housing. BC followed suit on July 23, 2009.
The HST in Ontario and BC will not apply to used residential housing. As a result, the following discussion applies to sales of new residential housing in Ontario and BC. The HST will generally apply to sales of new residential housing if both ownership and possession are transferred on or after July 1, 2010.
However, grand parenting is generally provided for sales of new residential housing where an agreement for the purchase and sale of the housing was entered into on or before June 18, 2009 in Ontario and on or before November 18, 2009 in BC. Generally, grand parented sales of new residential housing are not subject to the HST regardless of when ownership and possession pass. Builders of grand parented homes may be required to pay a Transitional Tax Adjustment.
Grand parenting would not apply to sales of traditional apartment buildings, duplexes, mobile homes and floating homes.
Where a purchaser of a grand parented home assigns the agreement to another purchaser and the assignee purchaser receives ownership and possession of the home after June 2010, the sale from the original builder to the assignee purchaser would be grand parented if:
• there is no novation of the agreement;

• the purchaser and builder are not associated; and

• the builder does not acquire any beneficial interest in the home.
Full or partial relief of the HST may also be available on a taxable resale of a grand parented home.

Question 15 - What is the transitional tax adjustment relating to sales of new housing?
Answer
For grand parented sales of newly constructed or substantially renovated single detached homes, semi-detached homes and attached homes in Ontario and BC, the builder would generally be required to pay a transitional tax adjustment where the home is completed in full or in part after June 2010. The transitional tax adjustment for these homes would be calculated on the total purchase price of the home, as established for GST purposes, based on the extent of construction or substantial renovation completed as of July 1, 2010, as follows:
• 100% of the transitional tax adjustment rate of 2%, where the home is less than 10% completed on July 1, 2010;
8 March 19, 2010
•

• 50% of the transitional tax adjustment rate of 2%, where the home is 25% or more and less than 50% completed on July 1, 2010;

• 25% of the transitional tax adjustment rate of 2%, where the home is 50% or more and less than 75% completed on July 1, 2010;

• 10% of the transitional tax adjustment rate of 2%, where the home is 75% or more and less than 90% completed on July 1, 2010; or

• 0% where the home is 90% or more completed on July 1, 2010.
75% of the transitional tax adjustment rate of 2%, where the home is 10% or more and less than 25% completed on July 1, 2010;
Question 16 - Will there be a HST rebate for new housing?
Answer
Yes. Purchasers of new homes in Ontario will be eligible for a rebate of 75% of the provincial component (i.e., 8%) of the HST paid to a maximum of $24,000. Sales of new homes above $400,000 will remain eligible for a maximum rebate of $24,000 (i.e., a rebate on the first $400,000 value).
Purchasers of new homes in BC will be eligible for a rebate of 5/7, or 71.43% of the provincial component (i.e., 7%) of the HST paid to a maximum of $26,250. Sales of new homes above $525,000 will remain eligible for a maximum rebate of $26,250 (i.e., a rebate on the first $525,000 value). The rebate will be available whether the new home is to be owner occupied or rented.
These rebates are in addition to the GST rebate that currently applies to sales of new housing.

Question 17 - In addition to the GST and HST rebates available to purchasers of new homes, are other rebates available?
Answer
Yes. The following describes two other rebate programs relating to real estate during the transitional period.
a) Ontario and BC Transitional New Housing Rebate
A Transitional New Housing Rebate would be available to individuals purchasing a new home or to builders who first rent a home, as the case may be, after June 2010. The rebate would only be available when the HST would apply. It is not available for grand parented homes. Generally, the rebate would be calculated as a proportion of the estimated embedded PST in the home, based on the degree of completion of the home as of July 1, 2010.
Eligible applicants would be permitted to calculate the estimated embedded PST by choosing one of the following two methods:
9 March 19, 2010
•

• Estimated PST content based on the selling price of the home, calculated at two per cent of the total price established for GST purposes ("selling price method").
Estimated PST content calculated at a prescribed amount per square metre of floor space in the home ("floor space method"); or
Ontario:
100% of the embedded PST rate of 2%, where the home is more than 90% completed on July 1, 2010;
British Columbia:
100% of the embedded PST rate of 2%, where the home is more than 90% completed on July 1, 2010;
10 March 19, 2010
A Provincial Sales Tax (PST) Inventory rebate is available in respect of the PST embedded in construction materials used in residential real property contracts that are subject to the HST. This rebate is available to contractors for the PST paid on construction materials that are purchased or produced for the contractor's own use, held in inventory at the end of the day on June 30, 2010 and used in a residential real property contract to which the HST applies.

Question 18 - How do the GST, HST, GST New Housing Rebate, HST New Housing Rebate, RST Transitional Adjustment, and/or RST Transitional Housing Rebate apply to sales of new homes in Ontario?
Answer
The following examples and tables set out the implications of the introduction of the HST on sales of new homes in Ontario, based on certain assumptions.
It is assumed that the sale price is on a tax-included basis. Each table includes the amount of GST and HST payable, the GST New Housing Rebate and the HST New Housing Rebate, as well as the RST Transitional Adjustment, and/or RST Transitional Housing Rebate. The rebates are assigned to the builder. Finally each table indicates the cash available to the builder after taxes and rebates.
The tables illustrate the GST/HST application depending on various prices. Also, the tables illustrate the GST/HST application depending on whether the agreement of purchase and sale was entered into before June 19, 2009 (grandparented) or on or after June 19, 2009 (not grandparented)
Further, examples 1 to 3 assume that the home is 50% to 74% completed at June 30, 2010.

Example 1: $300,000 selling price (GST/HST included)
Grandparented

Not Grandparented

GST/HST Payable

$14,535

$37,608

GST Rebate

$5,233

$5,207

HST Rebate

$0

$17,358

RST Transitional Housing Rebate

$0

$4,339

Total

$300,000

$300,000

Transitional Tax Adjustment (payable by builder)

$1,453

$0

Cash Payable to Builder

$289,245

$289,296}

•

• 90% of the embedded PST rate of 2%, where the home is 75% or more and less than 90% completed on July 1, 2010;

• 75% of the embedded PST rate of 2%, where the home is 50% or more and less than 75% completed on July 1, 2010;

• 50% of the embedded PST rate of 2%, where the home is 25% or more and less than 50% completed on July 1, 2010;

• 25% of the embedded PST rate of 2%, where the home is 10% or more and less than 25% completed on July 1, 2010; or

• 0% where the home is 10% or less completed on July 1, 2010.

Where the rebate calculation is based on the floor space method, application for a rebate can be made anytime on or after July 1, 2010. Where the rebate calculation is based on the selling price, an application for a refund on the day the HST was payable.

b) Ontario and BC Inventory Rebate for Contractors

•

• 75% of the embedded PST rate of 2%, where the home is 75% or more and less than 90% completed on July 1, 2010;

• 50% of the embedded PST rate of 2%, where the home is 50% or more and less than 75% completed on July 1, 2010;

• 25% of the embedded PST rate of 2%, where the home is 25% or more and less than 50% completed on July 1, 2010;

• 10% of the embedded PST rate of 2%, where the home is 10% or more and less than 25% completed on July 1, 2010; or

• 0% where the home is 10% or less completed on July 1, 2010.

The rebate would be calculated using the selling price method as follows:

The rebate would be calculated using the floor space method as follows:

• $45 per square meter of floor space in a home in Ontario and $60 per square meter of floor space in a home in BC.

The rebate would be calculated using the selling price method as follows:

Where the fair market value of the grand parented home as of July 1, 2010 is greater than the actual purchase price for the sale of the home, the purchase price for purposes of the transitional tax adjustment is deemed to be equal to the fair market value on July 1, 2010.

Confirmed in a telephone conversation with Excise and GST/HST Rulings Directorate, CRA

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H.S.T. Ontario 13% Taxation

Sasha Dear (Royal LePage Lakes of Muskoka) — Fri, 09 Apr 2010 10:02:07 -0700

Because Canadians are already being charged DOUBLE for utilities, cell services, majority of everyday products, car/truck parts.....and because Canadians are not being charged quite enough in taxes already...

The provinces of Ontario and British Columbia have agreed to implement the harmonized sales tax (HST), which would replace existing provincial sales taxes and the federal goods and services tax in those provinces beginning July 1, 2010 and would be administered by the Canada Revenue Agency. Legislation to enact the HST has been passed into law by the Governments of Canada and Ontario.

Legislation to enact the harmonized sales tax (HST) has been passed by the Governments of Canada and Ontario. The HST will be applied on most supplies of goods and services made in Ontario at a rate of 13%, consisting of the 5% federal portion and an 8% provincial portion.

Businesses in Ontario that are registered for the GST would be required to collect the HST and would report their HST according to their current GST filing frequency. Retailers and service-providers should begin to upgrade their point-of-sale, cost and accounting systems as early as possible to ensure that they meet the implementation date of July 1, 2010.

For additional information on Ontario's sales tax reform, visit the Ontario Ministry of Revenue Web site.

Have a question about this article, or anything about Muskoka Real Estate?

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H.S.T. Ontario 13% Taxation

Sasha Dear (Royal LePage Lakes of Muskoka) — Fri, 09 Apr 2010 10:01:22 -0700

For additional information on Ontario's sales tax reform, visit the Ontario Ministry of Revenue Web site.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Muskoka Lakes Real Estate Sales Feb 2010

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 12:41:10 -0800

Here is a chart showing Muskoka Lakes Real Estate sales for the month of February 2008, 2009, 2010. The chart shows residential, recreational, condo, and vacant lot sales for Muskoka Lakes.

You will notice that there are no condo sales in the Muskoka Lakes region for the past 3 years.

Muskoka Lakes Real Estate sales for February 2009 were at zero for residential, recreational, condo and vacant lots. Feb 2009 revealed a negative market for Real Estate sales in Muskoka Lakes area.

2010 shows a positive bounce back for February in residential, and especially Muskoka Lakes recreational and vacant lot sales.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Huntsville, Muskoka Real Estate Sales Feb 2010

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 12:30:23 -0800

This chart shows untsville Muskoka Real Estate sales for February 2008, 2009, 2010. The chart shows residential, recreational, condo and vacant lot Real Estate sales in Huntsville Muskoka.

Recreational and condo sales show no drastic change for the month of February over the past three years.

There has been a steady increase in Huntsville residential Real estate since 2008, and a steady decrease in February Real Estate sales for Huntsville vacant lots.

Overall, a balanced Real Estate market for Huntsville Muskoka.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Lake of Bays, Muskoka Real Estate Sales Feb 2010

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 12:22:46 -0800

Here is a chart showing Lake of Bays Muskoka Real Estate sales forb the month of February 2008, 2009, 2010. The chart shows Real estate sales in Lake of Bays Muskoka for residential, recreational, condo and vacant lots.

You will notice that condo sales for the month of February have remained consistant with zero interest to buy a condo in February in Lake of Bays Muskoka area. This may be due to lack of condo actives for that area. While recreational and vacant lot real estate sales in Lake of bays is down in 2010 compared to prevoius two years, Residential sales in Lake of bays Muskoka are up this year.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Haliburton, Muskoka Real Estate Sales Feb 2010

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 12:10:26 -0800

Here is a chart showing Haliburton Muskoka Real Estate sales for the month of February 2008, 2009, 2010.

The chart shows Haliburton Muskoka Real Estate sales for residential, recreational, codo and vacant lots.

You will notice that Condo sales in the Haliburton Muskoka area remain consistantly at zero with no apparent desire to purchase a condo in the month of February.

While the Haliburton Real Estate sales for residential and vacant lots have decreased since 2008, there seems to be an increased desire to purchase recreational property in 2010 compared to previous two years.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Gravenhurst, Muskoka Real Estate Sales Feb 2010

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 11:57:21 -0800

Here is a chart showing Gravenhurst Muskoka Real estate sales for February 2008, 2009, 2010.

You will notice that for the month of February, there has been a steady decline in Gravenhurst Muskoka Residential Real estate sales. Gravenhurst recreational sales have remained consistant, and a decline in Gravenhurst vacant lot sales since 2008. Gravenhurst Condo Real estate sales have bounced back since 2008.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Bracebridge Muskoka Real Estate Sales Update

Sasha Dear (Royal LePage Lakes of Muskoka) — Mon, 01 Mar 2010 11:49:24 -0800

Here is a chart showing Bracebridge Muskoka Real Estate sales for the month of February compared to 2008, 2009 and 2010.

You will notice that the Bracebridge Muskoka Real Estate Residential sales have remained consistant throughout the past 3 years, as with vacant lot sales for this month. Where condo sales have increased, recreational sales have dropped.

Overall, a steady real estate market shows in Bracebridge, with no drastic variances for the month of February over the past 3 years.

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Muskoka Real Estate Sales Prices 2008/2009

Sasha Dear (Royal LePage Lakes of Muskoka) — Tue, 02 Feb 2010 09:59:56 -0800

Below is a chart that shows all Muskoka Real estate sales for 2009 compared to Muskoka Real Estate sales in 2008. The price brackets are indicated on the left of the gragh, and the total number of units sold in Muskoka are indicated within the gragh.

You will notice that, apart from Real Estate sales that are under $100,000 there has been an increase in the Muskoka Real Estate sales value. This shows a positive bounce back in the Muskoka Real estate market compared to 2008. The most dramatic increase in sales was in the price range of $260,000 to $349,999. Overall, a good projection for the Muskoka Real Estate market in 2010!

Have a question about this article, or anything about Muskoka Real Estate?

email me and I will get back to you the same day. info@sashadear.ca

Example 1: $300,000 selling price (GST/HST included) Grandparented	Not Grandparented
GST/HST Payable	$14,535	$37,608
GST Rebate	$5,233	$5,207
HST Rebate	$0	$17,358
RST Transitional Housing Rebate	$0	$4,339
Total	$300,000	$300,000
Transitional Tax Adjustment (payable by builder)	$1,453	$0
Cash Payable to Builder	$289,245	$289,296