basement bedroom
218 Howard Park Avenue

With recent economic uncertainty and job losses, coupled with rising house prices in some parts of the country, it's little wonder people are looking closer to home, or, more specifically, at their home, as a means to generate income. Turning a primary residence into a partial income property by adding a suite or basement apartment is a popular option for homeowners, but doing it right requires expert advice and a hefty investment.

One of the biggest draws is being able to supplement your mortgage payments. "We see it a lot with first-time buyers because it allows them to afford a bit more house," says real estate insider Jennifer Palacios, a member of the Julie Kinnear Team in Toronto. However, she stresses that projected income from a rental unit isn't factored in when applying for a mortgage and won't increase the amount for which you qualify.

"It's a convenient additional income for any homeowner," says Ivan Koval, president of ReliableConnections.com, a southern Ontario contractor referral service. He says the request for self-contained units in single-family homes has risen steadily since July 2000, when the City of Toronto's second suites bylaw came into effect.

Prior to this, there were plenty of basement apartments and such out there, but they weren't considered legal. The new bylaw allowed for second suites in all single-detached and semi-detached houses throughout the city, as long as they complied with certain conditions.

To read the whole article, click here.

You have few days more to make this year's first bike trips around or have a long walk along the waterfront; however you should plan it before the next weekend comes. David Phillips, senior climatologist with Environment Canada and Canadian weather guru, said “We're being seduced by Mother Nature, but if you're realistic about it, you really have to expect some more winter.”

There is a 60% chance of flurries at the end of this week, but it will not change the fact we are experiencing one of the driest winters in recent years. While average aggregated snow level is almost one meter, this winter recorded only 52 centimeters of snow so far. Naturally, such deviations from average give hard times to climatologists.

“It's almost like weather has taken a holiday. This is like the March Break for weather,” Mr. Phillips added.

It's normal to expect about 20% of overall winter snowfall to occur after the beginning of March. Well, Mother Nature will probably not be able to reach last years' standards, but you should have a snow shovel by hand anyway.

TREB just prepared a new issue of their regular Market Watch report, confirming a strong year ahead.

One look at the February 2010 sales results will help you to make a clear picture. With 7,291 items sold, there was 77% growth in sales compared to February 2009 and almost 50% growth compared to the January 2010 results. But everybody who read the mid-month report could expect it.

The average price went up 19% to $431,000. 12,726 new properties appeared on the market (24% more compared to the year before), rising thus the overall number of MLS listings to 14,514. However, it's still 32% less than in February 2009. But you don't have to be afraid that you may have problem selling your property – quite the opposite. We noticed record drop in terms of the Days on Market indicator – from 28 in January to 22 in February (and 45 the year before). This indicator hasn't been so low for months.

TREB President Tom Lebour commented: “Increases in existing home sales and average price were noted across the GTA in low-rise and high-rise hometypes. Similar rates of growth were experienced in the City of Toronto and surrounding 905 regions. This suggests that first time, move-up and down sizing buyers are all active in the existing home marketplace.”

However, slowly rising number of new listings suggests that the market will become more moderate later in 2010, when new listings should start to outstrip the sales growth.
 

Background

The provincial government has passed legislation to combine the eight percent Provincial Sales Tax with the five percent federal Goods and Services Tax, creating a 13 percent Harmonized Sales Tax (HST).

The HST will come into effect beginning on July 1, 2010; however, note transition rules below.

HST will not apply on the purchase price of re-sale homes.

HST would apply to services such as moving cost, legal fees, home inspection fees, and REALTOR® commissions.

HST will apply to the purchase price of newly constructed homes. However, the Province is proposing a rebate so that new homes across all price ranges would receive a 75 per cent rebate of the provincial portion of the single sales tax on the first $400,000. For new homes under $400,000, this would mean, on average, no additional tax amount compared to the current system.

Transitional Rules for New Housing

Generally, sales of new homes under written agreements of purchase and sale entered into on or before June 18, 2009 would not be subject to the provincial portion of the single sales tax, even if both ownership and possession are transferred on or after July 1, 2010.
The tax would also not apply to sales of new homes under written agreements of purchase and sale entered into after June 18, 2009 where ownership or possession is transferred before July 1, 2010.

Additional Transitional Rules

Where services straddle the HST implementation date of July 1, 2010, the tax charged for the service may have to be split between the pre-July 2010 and post-June 2010 periods. However, the HST will generally not apply to a service if all or substantially all (90% or more) of the service is performed before July 2010.
Four key timelines are important (see below). All are based on the earlier of the time the consideration is either due (In general, an amount is due on the date of the invoice or the day required to be paid pursuant to a written agreement), or is paid without having become due. If consideration is due or paid,
Before October 15, 2009, HST will generally not apply (however, see above transition rules for new housing).
From October 15, 2009 to April 30, 2010, certain business that are not entitled to recover all of their GST/HST paid as input tax credit may be required to self-assess the provincial component of the HST with respect to goods or services supplied after June 30, 2010.
From May 1, 2010 to June 30, 2010, HST will generally apply for services supplied after June 30, 2010.
After June 30, 2010, HST will generally apply. An exception to this rule would be where ownership of the property is transferred before July 2010 or the invoice relates to services provided before July 2010.
With regard to the lease or license of goods, including non-residential real property, HST will generally apply to lease intervals or payment periods on or after July 1, 2010 and the general rules noted above will apply. However, where a lease interval begins before July 2010 and ends before July 31, 2010, it is not subject to HST.
With regard to the sale of non-residential property, HST is due where both possession and ownership of non-residential property occurs on or after July 1, 2010.

Additional detail on the transition rules is available at the provincial government web site or by calling the provincial government enquiry line at 1-800-337-7222.

Dundas and Parliament

Published in Friday's Globe and Mail on Friday, February 19th, 2010.

248 Ontario Street, Cabbagetown

• 248 ONTARIO STREET, Toronto
• ASKING PRICE: $499,000
• SELLING PRICE: $565,565
• PREVIOUS SELLING PRICE: 385,000 (2003)
• TAXES: $$3,684 (2009)
• LOT SIZE: 18 by 96 feet
• DAYS ON THE MARKET: six
• LISTING AGENT: Julie Kinnear, Royal LePage Real Estate Services Ltd.

To the delight of potential buyers, this 1,718-square-foot residence in Cabbagetown offers the charm of a heritage home, yet the conveniences of an urban dwelling, agent Julie Kinnear says.

"It had a lot going for it," she says. "It's a little bit quirky."

About 116 years ago, this detached, two-storey structure was built with full sound barriers and separate foundations from adjacent properties. In the 1980s, a major renovation eliminated some drawbacks typically found in old Victorian homes.

For instance, the interior is flooded with sun from skylights, walkouts and large windows, such as the one along the staircase to the 589-square-foot basement.

Sliding glass doors brings natural light into the recreation room and office in the lower level, which was dug deeper by about three feet. "I think the basement was one of the big highlights because a lot of Victorians don't have any basements at all," the agent says.

The main floor is fairly open with a combined living/dining area with a wood-burning fireplace and hardwood floors below 10½-foot ceilings.

The kitchen was outfitted with a rare powder room, painted hardwood floors and appliances including a gas stove, plus a walkout to the interlocking patio and an oversized garage off the rear lane.

The second floor houses laundry facilities, an updated bathroom and three bedrooms. One is brightly lit with a skylight and sliding balcony doors.

Changes within the past decade include an upgraded furnace, central air and central vacuum systems, as well as some new windows, roofing and insulation.

"It's definitely a user-friendly house," Ms. Kinnear says.

Coxwell and Danforth

Published in Friday's Globe and Mail on Friday, February 19th, 2010.

159 Hanson Street

• 159 HANSON STREET, Toronto
• ASKING PRICE: $379,000
• SELLING PRICE: $425,000
• PREVIOUS SELLING PRICE: $187,500 (2001)
• TAXES: $2,400 (2009)
• LOT SIZE: 20 by 100 feet
• DAYS ON THE MARKET: six
• LISTING AGENT: Julie Kinnear, Royal LePage Real Estate Services Ltd.

This renovated, two-bedroom house generated the most traffic among the properties listed for sale on the real-estate website of Julie Kinnear.

So the agent was not entirely surprised when it fetched a handful of solid offers from young professionals looking to acquire a great deal of living space in an established east-end neighbourhood.

"It was very affordable for being detached and being two-storeys," says Ms. Kinnear. "There are a lot of semis and bungalows around it."

A previous owner created this 1,018-square-foot residence by adding a second floor to the bungalow that was first built there in the 1940s.

In the past few years, the last owner installed new roofing, windows, furnace and water main. The main floor was refinished with engineered hardwood floors and outfitted with a powder room - an element rare in this neighbourhood's homes. In addition, the living room was opened up to the floating staircase and work nook.

"You could move right on in and not have to worry about anything," says Ms. Kinnear. "In Toronto, you can't buy anything under $450,000 that's in good condition, or it's really hard [to do]."

The rear kitchen features pot lights, ceramic backsplashes and a walkout to a stone patio and private, south-facing backyard.

Upstairs, the main bathroom between the bedrooms was updated. The master bedroom faces south and has a wall of closets and new carpeting.

The 509-square-foot basement features above-grade windows in the open office space and the recreation room, which has a rear exit.

Parking is available on the road, though it is easy to walk to essential amenities. "It's a very pretty street in that neighbourhood," says Ms. Kinnear. "You're close to all kinds of good stuff, like good schools, parks and subway."

Just answer the following skill testing question for your chance to win!

One correct answer to the following skill-testing question will be drawn:

Contest closes on 15th March, 2010 at midnight

Julie Kinnear, a sales rep with Royal LePage in Toronto, also thinks of her vehicle as a mobile office. "A lot of our work is done in our cars, especially since we end up waiting between appointments and making calls or waiting in front of a house during an offer presentation. I spend on average between three to six hours per day in my vehicle." Julie Kinnear

Julie Kinnear

Kinnear likes to use her car time for productivity. "I am a big believer in 'sharpening the saw' and improving my skills as a Realtor. I listen to CDs or my iPod. I have downloaded many inspirational speakers - it keeps me motivated and energetic. I listen to other Realtors, conferences and business books on tape. When not driving I am on my BlackBerry replying to emails, returning phone calls, and looking up properties on MLS. I bought an adapter for the lighter in the car that turns the electrical outlet into a normal plug so my laptop can work with it if necessary. I also have a Bell turbo stick to receive high-speed Internet via wireless.”

A microcassette or digital recorder is a handy tool to keep in the car. Use it to record ideas without running off the road. If you have an assistant, you can use the device to dictate memos or letters for them.

Kinnear has some thoughts for sales reps on the road: "Avoid driving at rush hour. Plan your day so you can do all appointments on one side of the city at the same time. Plan your route and get a GPS."

The Hurt Locker review

We Will Help Guiding You Home
by Cory Doctorow

Here’s a quick note to let you know how we can help you or anyone you might introduce to us.

Annabel was referred to us and is a recent graduate with a great job. Now that she is working, Annabel was ready to stop throwing her money away on rent, and thought it was time to have her money work for her. The buying process was very new to Annabel, and she wasn’t sure where to start.

Annabel met Jen for an initial consultation to get a handle on her options. After answering some in depth, thought-provoking questions, she and Jen were able to narrow down exactly what Annabel was truly looking for. Annabel appreciated the custom “Julie Kinnear Team Buyer Manual” that we supplied during that first meeting, and was a useful resource for her.

To help guide her home we also introduced Annabel reliable and trusted mortgage brokers who calmed her fears of the dreaded mortgage! As we viewed various properties, we were able to give Annabel more and more information regarding the process. When it came time to bid on a property, we negotiated a good deal for her and continued to consult with Annabel regarding her next steps. Our clients are clients for life - we took pride in helping Annabel through the entire process, well after the day she moved in.

Buying a home for the first time can be daunting – there is a lot to think about and know. Let us guide you through the process…

The Julie Kinnear Team
Your Real Estate Consultants For Life

P.S. Who’s the next person you know who wants to stop paying rent? Be sure to give us a call to discuss how we can help them.