Garry Marr, Financial Post
Don’t over do it this Christmas, if you want to sell your house, that is.
Royal LePage Real Estate Services says it’s time to start thinking about a smaller tree this year if you plan to list your home for sale over the holiday season. Those large, decorated trees can take over a room and make it appear smaller to potential customers.
The week between Christmas and New Year’s is a slow period for real estate transactions, meaning sellers need any advantage they can muster.
“When people are selling their houses at Christmas time, they are selling under some other stress. They are usually highly motived to sell,” says Dianne Usher, a vice-president with Royal LePage. “You’ve got the euphoria of the holiday season and, oops we have to sell. It’s a great time to buy.”
The real estate company is not being a total Scrooge about the season, it’s just calling for less of everything.
Among its other suggestions are avoiding too many lights and opting for white lights instead of multi-colored flashing bulbs to give your home a neutral glow.
Forget the stacks of presents under the tree too, they just give your home a cluttered look. And those holidays meals may smell great to you, but they are a strange odour to a potential buyer.
“You want to try to tone it down a bit. Take the personal aspect of your home out of it,” says Ms. Usher, adding Christmas marks your home more than usual. “It just adds too much of a distraction to the room.”
But should you have no Christmas decorations? Would that be a turn off to buyers?
“Not in major urban centres because we are so multicultural today,” says Ms. Usher, adding in some rural and suburban centres, a touch of Christmas can be important to selling.
Mary Helen Rosenberg, a partner in Stage To Sell, says the whole idea behind staging is to keep your home as neutral as possible, so it appeals to the widest audience of buyers.
“No, I wouldn’t get rid of the tree all together, but I wouldn’t overdo it with decorations, too,” Ms. Rosenberg says. “You can’t rob the family of traditions. I wouldn’t put the tree up Dec. 1 and take it down Jan. 20. I might close that window and keep it fairly short and allow the family to enjoy its regular traditions. If it’s serious and we need to sell your house, you bring the tree down a little earlier.”
Even the guys who grow the trees say it’s probably not a good idea to have a giant one in the middle of your living room during an open house.
“When it comes to selling a house, it is important to not fill the room with a large and wide tree loaded with decorations. The eyes of the buyer will look at how big a tree is and how small the room is, even if it’s in the basement,” said Lewis Downey, executive director of Canadian Christmas Tree Growers Association.
“I think you do need a tree though. It’s Christmas time and it’s natural to have a tree. If you don’t have a tree, it can have reverse effect and people may say, ‘What’s the matter, there’s no tree. They’re not happy to live there.’”
Thinking of buying or selling over the holidays? I'd be happy to help. http://www.firstchoicehomes.ca/
Helping you is what I do!
Monday, December 20, 2010
Friday, December 17, 2010
Analysts fret over housing, want to hear from Carney
MICHAEL BABAD
At least some economists want Bank of Canada Governor Mark Carney to elaborate today on his views on housing and household debt.
Having flagged the issue for months now, Mr. Carney speaks today to the Economic Club of Toronto on "Reflections on the Economic Outlook." Given Mr. Carney's repeated warnings on the high levels of household debts, economists Derek Holt and Gorica Djeric want the central bank chief to update markets on the outlook for housing.
"Our concerns have not gone away," the economists said in a research note. "We always argued that there would not be a U.S.-style housing bust principally because of work we've done on the vast differences between Canadian and U.S. mortgage and banking markets, but we still subscribe to the view that house prices face downside risks although the exact timing is uncertain."
Most economists don't expect a U.S.-style meltdown, but continued low interest rates, which Mr. Carney used to fight the recession, have helped lead to a continued build-up in personal debt.
And as The Globe and Mail's Tara Perkins reports today, the situation has become so worrisome that federal officials are studying the possibility of new measures to curb that increase. Many of the country's bankers support such a move, which could come in the next federal budget, Ms. Perkins writes.
The Scotia Capital economists noted that the home ownership rate in Canada is at a record high of about 70 per cent - that's a bit more than the peak in the United States. Home prices are also at record levels and the market is overvalued, while the debt-to-income ratio sits at 145 per cent, which is "not terribly lower than a properly defined U.S. comparison." The ratio of debt to assets, meanwhile, is the second-highest in the G7.
Real estate, they said, may be getting a temporary boost because fixed rates have been kept low as the Federal Reserve's low policy rate ties Mr. Carney's hands from going much higher.
"But the [Bank of Canada] is right to flag the risks of low rates for a long period," said Mr. Holt and Ms. Djeric. "In our view, low rates for a long time translate into concerns about transferring even greater volumes of homebuyers out of the future into the present. When that future comes, Canada's outperformance on GDP growth compared to the G7 average over the past decade that owed itself significantly to the unleashing of pent-up demand in housing and consumption from the 1990s into the past decade will have run its course and a softer demand environment for housing will be unleashed."
At least some economists want Bank of Canada Governor Mark Carney to elaborate today on his views on housing and household debt.
Having flagged the issue for months now, Mr. Carney speaks today to the Economic Club of Toronto on "Reflections on the Economic Outlook." Given Mr. Carney's repeated warnings on the high levels of household debts, economists Derek Holt and Gorica Djeric want the central bank chief to update markets on the outlook for housing.
"Our concerns have not gone away," the economists said in a research note. "We always argued that there would not be a U.S.-style housing bust principally because of work we've done on the vast differences between Canadian and U.S. mortgage and banking markets, but we still subscribe to the view that house prices face downside risks although the exact timing is uncertain."
Most economists don't expect a U.S.-style meltdown, but continued low interest rates, which Mr. Carney used to fight the recession, have helped lead to a continued build-up in personal debt.
And as The Globe and Mail's Tara Perkins reports today, the situation has become so worrisome that federal officials are studying the possibility of new measures to curb that increase. Many of the country's bankers support such a move, which could come in the next federal budget, Ms. Perkins writes.
The Scotia Capital economists noted that the home ownership rate in Canada is at a record high of about 70 per cent - that's a bit more than the peak in the United States. Home prices are also at record levels and the market is overvalued, while the debt-to-income ratio sits at 145 per cent, which is "not terribly lower than a properly defined U.S. comparison." The ratio of debt to assets, meanwhile, is the second-highest in the G7.
Real estate, they said, may be getting a temporary boost because fixed rates have been kept low as the Federal Reserve's low policy rate ties Mr. Carney's hands from going much higher.
"But the [Bank of Canada] is right to flag the risks of low rates for a long period," said Mr. Holt and Ms. Djeric. "In our view, low rates for a long time translate into concerns about transferring even greater volumes of homebuyers out of the future into the present. When that future comes, Canada's outperformance on GDP growth compared to the G7 average over the past decade that owed itself significantly to the unleashing of pent-up demand in housing and consumption from the 1990s into the past decade will have run its course and a softer demand environment for housing will be unleashed."
Thursday, December 16, 2010
Top 10 Things To Avoid When Selling Your Home Over The Holidays, According To Royal LePage
Vacation time and slower work schedules create an ideal time for open houses. However, as homes fill up with presents, decorations and visitors, sellers are often faced with the challenge of striking the right balance between cozy and crammed. Keeping your home tidy and sparingly-decorated doesn't mean sellers can't celebrate the season in style, but remember that buyers are looking for just the right amount of sparkle.
"Potential buyers expect that there may be some decorations, but when they arrive they are trying to envision how they would spend their day-to-day lives in the home," says Phil Soper, president and chief executive, Royal LePage Real Estate Services. "Keeping the holiday decorations to the right level will be easier if you remember the goal is to bring out the home's structural charm," Soper adds.
We know that potential buyers can be put off by a home that has too many personal items. So while trying to manage the Christmas clutter, sellers should also remove items that remind buyers that the home belongs to someone else. To assist sellers, Royal LePage compiled a top ten list of things to avoid when selling a home during the holiday season.
Too many lights: A home will dazzle more if lights are kept to a tasteful minimum. Sellers should opt for white lights instead of multi-coloured flashing bulbs to provide a more neutral glow to a home.
Forgetting to clear the snow: Snow can look beautiful on trees, but driveways and walkways should be cleared as soon as the flakes fall. Buyers should be able to move freely during an open house so it's important to remember all the outdoor paths and patios around your home.
No life or landscape: Give buyers a chance to imagine the potential in your landscape. Frost-resistant plants like flowering kale or miniature trees allow sellers to liven up walkways without taking away the buyer's ability to envision his or her dream outdoor spaces
Not cozy: Everyone appreciates a warm, cozy home - especially in the winter. Set the thermostat at a warm temperature for the whole day, and be mindful that some thermostats have low temperature pre-sets during the day when no one is at home. When the home is attended, fireplaces and candles could also be lit to create a comfortable environment throughout the day.
Engage the senses: Simmering a pot of cider with cinnamon during open houses or showings will create a warm and festive feeling.
Lingering odours: Be aware of those holiday dishes that may leave a strong odour. If possible, wait until showings are completed before cooking those traditional favorites -- potential buyers will appreciate a neutral environment.
Hiding a home's seasonal bests: Photos of the home's back and front yards, gardens and patios in spring and summer will show potential buyers what the house looks like when it is not buried under snow and when the leaves are still on trees.
Don't let the tree take over: A smaller Christmas tree, with minimal decorations, will create the appearance of more space. A huge tree, on the other hand, will make the room look smaller, and busy decorations can intensify clutter.
Presents should not be present: It is important to cut back on clutter when showing a home; hide the wrapped presents to keep them out of eyesight.
Too many decorations: Remember, when selling a home during the holidays, less is always more. Whimsical ornaments can be great accents during the holidays, but be mindful not to go overboard. When it doubt, remove it!
"Potential buyers expect that there may be some decorations, but when they arrive they are trying to envision how they would spend their day-to-day lives in the home," says Phil Soper, president and chief executive, Royal LePage Real Estate Services. "Keeping the holiday decorations to the right level will be easier if you remember the goal is to bring out the home's structural charm," Soper adds.
We know that potential buyers can be put off by a home that has too many personal items. So while trying to manage the Christmas clutter, sellers should also remove items that remind buyers that the home belongs to someone else. To assist sellers, Royal LePage compiled a top ten list of things to avoid when selling a home during the holiday season.
Too many lights: A home will dazzle more if lights are kept to a tasteful minimum. Sellers should opt for white lights instead of multi-coloured flashing bulbs to provide a more neutral glow to a home.
Forgetting to clear the snow: Snow can look beautiful on trees, but driveways and walkways should be cleared as soon as the flakes fall. Buyers should be able to move freely during an open house so it's important to remember all the outdoor paths and patios around your home.
No life or landscape: Give buyers a chance to imagine the potential in your landscape. Frost-resistant plants like flowering kale or miniature trees allow sellers to liven up walkways without taking away the buyer's ability to envision his or her dream outdoor spaces
Not cozy: Everyone appreciates a warm, cozy home - especially in the winter. Set the thermostat at a warm temperature for the whole day, and be mindful that some thermostats have low temperature pre-sets during the day when no one is at home. When the home is attended, fireplaces and candles could also be lit to create a comfortable environment throughout the day.
Engage the senses: Simmering a pot of cider with cinnamon during open houses or showings will create a warm and festive feeling.
Lingering odours: Be aware of those holiday dishes that may leave a strong odour. If possible, wait until showings are completed before cooking those traditional favorites -- potential buyers will appreciate a neutral environment.
Hiding a home's seasonal bests: Photos of the home's back and front yards, gardens and patios in spring and summer will show potential buyers what the house looks like when it is not buried under snow and when the leaves are still on trees.
Don't let the tree take over: A smaller Christmas tree, with minimal decorations, will create the appearance of more space. A huge tree, on the other hand, will make the room look smaller, and busy decorations can intensify clutter.
Presents should not be present: It is important to cut back on clutter when showing a home; hide the wrapped presents to keep them out of eyesight.
Too many decorations: Remember, when selling a home during the holidays, less is always more. Whimsical ornaments can be great accents during the holidays, but be mindful not to go overboard. When it doubt, remove it!
Tuesday, December 14, 2010
High taxes hamper real estate investment in Canada: Study
By Tony Wong
High taxes are an impediment to commercial real estate investors looking to invest in Canada, says a new global study.
“I think it’s clear that the system is broken and no one has the fortitude to step up to fix it,” said Gerry Divaris, vice president of Cushman & Wakefield property tax services.
Commercial property owners in Canada pay the highest taxes globally, according to a report by Luxemburg-based tax advisory service Taxand.
Taxes are a “massive” 53 per cent of commercial property rents, according to Taxand in the report released Monday.
The U.S. has the second highest tax rate at 41 per cent, but that’s still a healthy 12 points below Canada’s, according to Taxand.
“The alarmingly high total tax rate for Canada is largely the combined result of high levels of tax, “which includes income and real estate taxes, said Keith O’Donnell, head of real estate for Taxand.
Norway is in third place globally at 36 per cent. Finland charges the least tax on commercial rental income at a mere 8.99 per cent.
Divaris said investors are turned off by the high taxes in Canada. In the Toronto market, for example, annual property taxes are at 1 per cent while commercial properties are taxed at 4 per cent, said Divaris.
“Home owners are the sacred cow,” said Divaris. “And people are worried that they can’t afford to pay for their property if taxes go up. The problem is, if you chase away all the businesses, who will provide for those jobs that you will need to pay for your home in the first place?”
Divaris says the Taxand study is no surprise, since investors have been complaining loud and hard that Canada is an expensive place to do businesses.
“Fortunately we have a lot of other things going for us that make us an attractive place to do business, but taxes are not one of them.”
However, the Taxand study has attracted some backlash from the industry, including from their Canada-based associates at tax law firm Gowlings, who say the 53 per cent figure may be overstated.
“That figure may be high and we’ve asked for clarification on how they came at those numbers,” said David Stevens, a partner with Gowlings specializing in business law.
Vince Imerti, a partner with Gowlings national tax group, said clients may typically complain about high taxes, but Canadian corporate tax has actually been falling over the years.
One thing that may have skewed the figure upwards is that the city of Toronto has a second land transfer tax that is in addition to the provincial land transfer tax. That tax was approved in 2007.
“As far as I know, Toronto is unique among municipalities in Canada to have such a tax,” said Stevens.
Because federal and provincial governments have over the years downloaded more responsibility on municipalities, property taxes are virtually the only way they can get revenue, said Divaris.
The City of Toronto Act was supposed to address that issue by allowing Toronto to charge fees such as the unpopular $60 vehicle registration tax. Incoming mayor Rob Ford says he already plans to scrap it.
“The problem is, if you’re not able to raise money any other way, then commercial property owners will continue to get hit until someone figures out a way. Right now it’s just politically unpalatable.”
contact me for all your real estate needs
High taxes are an impediment to commercial real estate investors looking to invest in Canada, says a new global study.
“I think it’s clear that the system is broken and no one has the fortitude to step up to fix it,” said Gerry Divaris, vice president of Cushman & Wakefield property tax services.
Commercial property owners in Canada pay the highest taxes globally, according to a report by Luxemburg-based tax advisory service Taxand.
Taxes are a “massive” 53 per cent of commercial property rents, according to Taxand in the report released Monday.
The U.S. has the second highest tax rate at 41 per cent, but that’s still a healthy 12 points below Canada’s, according to Taxand.
“The alarmingly high total tax rate for Canada is largely the combined result of high levels of tax, “which includes income and real estate taxes, said Keith O’Donnell, head of real estate for Taxand.
Norway is in third place globally at 36 per cent. Finland charges the least tax on commercial rental income at a mere 8.99 per cent.
Divaris said investors are turned off by the high taxes in Canada. In the Toronto market, for example, annual property taxes are at 1 per cent while commercial properties are taxed at 4 per cent, said Divaris.
“Home owners are the sacred cow,” said Divaris. “And people are worried that they can’t afford to pay for their property if taxes go up. The problem is, if you chase away all the businesses, who will provide for those jobs that you will need to pay for your home in the first place?”
Divaris says the Taxand study is no surprise, since investors have been complaining loud and hard that Canada is an expensive place to do businesses.
“Fortunately we have a lot of other things going for us that make us an attractive place to do business, but taxes are not one of them.”
However, the Taxand study has attracted some backlash from the industry, including from their Canada-based associates at tax law firm Gowlings, who say the 53 per cent figure may be overstated.
“That figure may be high and we’ve asked for clarification on how they came at those numbers,” said David Stevens, a partner with Gowlings specializing in business law.
Vince Imerti, a partner with Gowlings national tax group, said clients may typically complain about high taxes, but Canadian corporate tax has actually been falling over the years.
One thing that may have skewed the figure upwards is that the city of Toronto has a second land transfer tax that is in addition to the provincial land transfer tax. That tax was approved in 2007.
“As far as I know, Toronto is unique among municipalities in Canada to have such a tax,” said Stevens.
Because federal and provincial governments have over the years downloaded more responsibility on municipalities, property taxes are virtually the only way they can get revenue, said Divaris.
The City of Toronto Act was supposed to address that issue by allowing Toronto to charge fees such as the unpopular $60 vehicle registration tax. Incoming mayor Rob Ford says he already plans to scrap it.
“The problem is, if you’re not able to raise money any other way, then commercial property owners will continue to get hit until someone figures out a way. Right now it’s just politically unpalatable.”
contact me for all your real estate needs
Thursday, December 9, 2010
Canadian new home prices rise again
09/12/2010 - CBC News
New home prices in October rose across Canada for the third month in a row, Statistics Canada said Thursday.
The agency's national new housing price index climbed 0.1 per cent in the month, down from the 0.2 per cent gain new home values increased in September. But October was still the third consecutive month in which the index headed north.
"The top contributors to the monthly increase ... were Toronto and Oshawa, as well as Vancouver," Statistics Canada said in a press release.
The index is designed to measure home prices for similar abodes and uses 1997 values as the base.
Thus, the index value for an average Canadian home in October stood at 158, or 58 per cent higher than the price of the same home in 1997.
Saskatoon experienced the biggest price jump, at 0.8 per cent in the month. Statistics Canada said rising labour costs in the city led to the higher new home prices.
Saskatchewan enjoyed the second lowest unemployment rate among provinces at 5.5 per cent in November, more than two percentage points below the national average of 7.6 per cent in the same month.
A low jobless rate indicates the potential for higher labour costs as companies hike wages to attract increasingly fewer available workers.
Interestingly, new home prices in Calgary dropped by 0.6 per cent in October despite the fact Alberta's unemployment decreased to six per cent from 6.2 per cent in September.
New home prices in October rose across Canada for the third month in a row, Statistics Canada said Thursday.
The agency's national new housing price index climbed 0.1 per cent in the month, down from the 0.2 per cent gain new home values increased in September. But October was still the third consecutive month in which the index headed north.
"The top contributors to the monthly increase ... were Toronto and Oshawa, as well as Vancouver," Statistics Canada said in a press release.
The index is designed to measure home prices for similar abodes and uses 1997 values as the base.
Thus, the index value for an average Canadian home in October stood at 158, or 58 per cent higher than the price of the same home in 1997.
Saskatoon experienced the biggest price jump, at 0.8 per cent in the month. Statistics Canada said rising labour costs in the city led to the higher new home prices.
Saskatchewan enjoyed the second lowest unemployment rate among provinces at 5.5 per cent in November, more than two percentage points below the national average of 7.6 per cent in the same month.
A low jobless rate indicates the potential for higher labour costs as companies hike wages to attract increasingly fewer available workers.
Interestingly, new home prices in Calgary dropped by 0.6 per cent in October despite the fact Alberta's unemployment decreased to six per cent from 6.2 per cent in September.
Subscribe to:
Comments (Atom)