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Community Updates

Community Updates Community Updates
OUR NEIGHBOURHOOD MARKET UPDATE

OUR NEIGHBOURHOOD MARKET UPDATE

2018 started with big changes in real estate, from introducing the " Stress Test" in the mortgage world, to applying greater restriction on foreigner buyers, as well the incresed interest rate from bank of Canada. All combined reflected with buyers and sellers taking extra time before making any moves, in order to get a firmer grip on these new changes.

The REALTORS® Association of Hamilton-Burlington (RAHB) reported:

- The median price of freehold properties increased by 2.7 % in February over the same month of the previous year while the median price for condominium properties increased by 4.5 % compared to the same period.

 - The average price of freehold properties in was 3.6 % lower than in February 2017 ; the average sale price in the condominium market increased by 2.7 % compared to the same period.
 
- Prices in both the freehold and condominium markets have moderated from the year - over - year increases we saw through the last couple of years. Condo prices showed gains in both average prices, but the freehold market saw a dip in average sale price.
 
- The average number of days on market increased to 37 days from 22 days in the freehold market and in creased to 34 days from 21 days in the condominium market, compared to the same month last year .
 

While the days on market has increased substantially from last February, you have to remember that last February was a remarkably active month with record sales for the month. In fact, February 2017 sales were 27.7 per cent higher than the 10 - year average. This February, the average time it took to sell a listed property actually followed the normal pattern for the month – that is, it was lower than it was in January . With the sales - to - new - listings ratio still in the low end of seller’s market, Like most years, we are seeing the sprouting of the spring market that we usually see in February.

As for our neighbourhood, here are the activities that took place in the first 2 months of 2018:

CONDO APARTEMENT

JANUARY: We had 3 sales. Average days on the market (ADOM) 26. Average sale price (ASP) $ 402,967 

FEBRUARY: We had 5 sales. ADOM 75. ASP $ 464,100

TOWN HOUSES/SEMI

JANUARY: We had 8 sales. ADOM 22. ASP $ 535,631

FEBRUARY: We had 4 sales. ADOM 61. ASP $ 532,475

DETACHED 2 STORY

JANUARY: We had 1 sale. ADOM 91. ASP % 942,000

FEBRUARY: We had 1 sale. ADOM 11. ASP $ 775,000

DETACHED SIDESPLIT

JANUARY: We had 10 sales. ADOM 60. ASP $ 722,290

FABRUARY: We had 2 sales. ADOM 25. ASP $ 736,000

DETACHED BACKSPLIT

JANUARY: We had 0 sale.

FEBRUARY: We had 2 sales. ADOM 65. ASP $ 731,450

DETACHED RAISED RANCH

JANUARY: We had 3 sales. ADOM 67. ASP $ 753,300

FEBRUARY: We had 1 sale. ADOM 18. ASP $ 808,000

 

If you have any questions or concerns, or you would like a more indepth report on your property just call or email me today. I live in the neighbourhood, and it's my pleasure to assist in every way I can!

 

CAPITAL GAINS EXPEMPTION

CAPITAL GAINS EXPEMPTION

in 2017 The Federal government have imposed an obligation to report the sale of a principle residence on your following tax return. This is so even though no tax is payable on a principle residence.

If you purchase and sell principle residences within a relatively short period of time, Canada Revenue will probably audit you at some point in time to-claim that the principle residence exemption does not apply.

Canada Revenue can take the position that you are engaged in the business of buying and selling properties and the entire gain would be taxable. It might also be taxed as business income.

Failure to report the sale of a principle residence may result in penalties, fines and legislation actually gives Canada Revenue the right to disallow the capital gains exemption even though you may be entirely otherwise entitled to the exemption. 

Keeping you well informed is my everyday business.

Burlington public library offers light therapy!

Burlington public library offers light therapy!

A specialty lamps are used to help those suffer with seasonal affective disorder (SAD), a type of depression that coincides with the decrease in day light hours during the long cold winter.

The light therapy box mimics natural outdoor light, by delivering mega bright UV filtered light, to help boost mood and energy levels. 

Unlike the Fluorescent bulbs that can be tiring to sit under.

This is a great step to increase awareness on mental health, and increase access to things that align directly with it.

So if you find yourself more sluggish or irritable these days, you are invited to enjoy a daily dose of brightness at your local library!

Even when winter is just a memory, light therapy lamps are available to use year around at BPL, whenever you need a pick me up!

YOUR RETIREMENT SAVING PLAN

YOUR RETIREMENT SAVING PLAN

It's this time of year again! What will it be, RRSP ( registered retirement saving plan ) or TFSA ( tax free saving account )? 

One thing for sure, either one you chose, your future is already looking brighter.

To help you make the best decision, here are few important facts to consider and some tips to help you decide:

 

RRSP

 

-  Tax deductible: contributions reduce the personal income tax you pay.

  • Tax sheltered: investments income in an RRSP are not taxed
  • Tax deferred: money inside an RRRSP is not taxed until withdrawn

 

TFSA

 

  • Non tax deductible : contributions do not reduce your personal income tax.
  • Tax sheltered : investment income inside a TRSF is not taxed.
  • Tax free : money taken out of a TSFA are not taxed.

 

Three important questions to answer:

 

1-What’s your goal?

 

Saving for a short term goal? 

A TSFA may be better choice because withdraws are not taxed.

Buying your first home?

Consider saving your money in an RRSP to use the first -time-home- buyer plan ( HBO). Once your RRSP reaches $25,000.00 from your RRSP ( the limit you can withdraw under  the HBP tax free), redirect savings to a TFSA. This way you can withdraw from your RRSP and additional savings from the TFSA also tax free for your new home.

 

Remember: 

 

HBP withdraws need to be returned to your RRSP over a maximum of 15 years.

If your goal is long term, say saving for retirement, an RRSP is still a good option.

 

2 - Are you in a high or low tax bracket?

 

RRSP contributions lower the income you pay tax on. When your income goes up, so does your personal tax rate.

So if you’re in a higher tax bracket, consider putting your money into an RRSP to reduce taxes.

If you’re in a low tax bracket but think you will be earning more in the future, consider parking your money in a TSFA. In the meantime, carry forward your RRSP contribution room into the future when you get into a higher tax bracket. Then use your TFSA savings to make a sizeable RRSP contribution to reduce the tax you pay. 

When you increase your RRSP contribution amount, you can also boost your income tax refund, which can be used to pay off debt.

 

3 - will you get a big pension?

 

TFSA withdraws are not considered income and are not taxed as a result.

In retirement, if you have a high income, you may lose or become intelligible for some federal income benefits such as Old Age Security benefit ( OAS). 

To provide perspective, the OAS clawback threshold for 2017 is $74,788. 

Any income above this threshold reduces the benefits you can get.

If you expect a big pension, put some savings into a TFSA to keep your taxable income low so you don’t risk losing some government benefits.

 

MARKET TURNAROUND IN 2017

MARKET TURNAROUND IN 2017

The Realtors Association of Hamilton-Burlington reported, that even while sales were down from the previous year, the total $ volume of sales reached a new high and resulted in a 14.4 % increase in all property average sale price for the 2017 year.

The real estate market in 2017 was notable for the abrupt change through the spring.

The market went from a strong, prolonged seller's market, where the average time to sell a property was 14 days, to a more balanced market where buyers had more time to view and compare properties before putting in an offer to purhase and an opportunity to negotiate a fair price for both parties.

In the residential market, listings were uo 16.4 % compared to the previous year, and sales were down 6%.

In the overall residential market, the median sale price was up 15.3 % over the previous year, and the average price was up 14.6 %.

The median sale price for freehold properties was 15.7 % higher than 2016, while the median for condominium properties was 16.9 % higher.

From those highs, there were minor fluctuations up & down, but the general trend continued downward to the end of the year. Yet even with the median & avarage prices settling after the highs, they were still above 2016 levels by a good margin for the year.

One thing to always keep in mind is that the year end review of the real estate market should not be understood to be an indicator of what a particular property is worth.

Amarket has many and varying influences, so what might be average in one area is quiet different from what is average in another.

For a detailed, accurate and up to date market evaluation of your property, give me a call. 

 

 

 

 

Should You Rent Out Part of Your Home?

Should You Rent Out Part of Your Home?

Have you ever considered renting out a room to a student or renovating your basement into a self-contained rental apartment?
It’s a big decision. There are many pros and cons to consider.
On the pro side, renting can provide you with additional income. An extra few hundred dollars a month can go a long way towards paying down your mortgage or splurging on an exotic summer vacation.
Creating rentable living space in your home —
for example, an “in-law suite” featuring a kitchenette and bathroom — may also increase your property’s market value.
On the con side, you’ll have more costs and responsibilities as a landlord. For example, you might need to purchase extra insurance because basic home insurance policies typically do not cover rental units, even if you’re just renting out a room. You’ll also be responsible for dealing with repairs sometimes in the middle of the night.
Also, if you’re not careful about the renter you choose, you might end up with a “problem tenant”. For example, you could have a tenant who is consistently late on rent payments or simply stops paying. That can be stressful.
If you’re deciding whether or not to rent, be sure to check local laws and regulations. Many jurisdictions have very strict rules regarding renting out space in a residential property, and those rules change frequently. Make sure you get the latest information. For more assisstance you can call or email me.

EVENING MOONLIGHT SNOWSHOE HIKE!

EVENING MOONLIGHT SNOWSHOE HIKE!

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