Mr. Carney compared our recession with the rest of developed countries and explained why Canada managed the downturn relatively well. There are two main reasons: "First, with a highly credible monetary policy and the strongest fiscal position in the G-7, Canadian policy-makers were able to respond swiftly and effectively with extraordinarily accommodative measures." And second: "Canada entered the recession with notable advantages, including a well-functioning financial system, strong corporate balance sheets, and relatively healthy household finances."

It's important to understand, that while the downturn was synchronized, the recovery has a different pace in different sectors across the university. Mr. Carney offered comprehensive outlook of business and labour market environment. The latter one was the most interesting part of the speech for us, especially with subsequent explanation of inflation.

Wage growth (which remained quite high even during the recession) now begins to decelerate and will ease the main inflation pressure. Inflation is supposed to return on 2% level in Q3 2011, so the Banks doesn't expect any inflation spree. However, Mr. Carney stressed the role of monetary stabilization duty of Bank of Canada: "To provide Canadians with confidence that their money will retain its purchasing power. That means keeping inflation low, stable, and predictable. Price stability lowers uncertainty, minimizes the costs of inflation, reduces the cost of capital, and creates an environment in which households and firms can invest and plan for the future."

When reading between the lines the thaw is coming – we will see the interest rate leaving the emergency level and coming up in the second half of 2010 and/or the first half of 2011. This is in a row with previous interest rate change predictions.

The whole speech can be accessed here.
 

Children who have moved before have usually acquired some wisdom in handling a change of community. But children who have never moved and have deep roots in their present homes may find leaving a more traumatic experience. In both cases, children may learn to see a move as a chance to make a brand new start.

Breaking the News

Let the youngsters know about the move at the earliest possible moment.

Realize first reactions of some young children involve fear of the unknown: “Where will I go to school?” “Will I have any friends?”

Teenagers, on the other hand, may greet the news with anger as they may envision their social lives going down the drain. “Move? But I’m going to be captain of the soccer team!” “What about my rock band?” They may have girlfriends or boyfriends they are reluctant to leave behind.

Take care to offer news about the move in as honest and positive a light as possible. The more you know about your new area, the easier it is to present alternatives positively.

Knowing your children’s interests, show them how they can continue doing what they like to do in the new neighbourhood. “The high school has one of the best soccer teams in the area!”

Share your own feelings about leaving and how you plan to transfer your activities – and even add to them. “Now’s my chance to try out golf since we’ll be so close to the new course.”

Finally, enlist their support by telling them how much you need their help.

When you visit the new place to look it over, take the children along. Seeing things for themselves will help them visualize ‘life after moving’ and will go a long way towards overcoming fear of the unknown.

Here are some suggestions to help children of all ages adapt:

• Remind kids of their past triumphs coping with disappointments – for example, when an injury prevented sports but led to the discovery of an instrument or a hobby

• Focus on the different (and better) things to look forward to

• Remind kids they’ve made so many friends in the past at places that were once scary and new, like dance or sports lessons, camp etc.

• Make contact with parents who have children in the same age bracket as your children. As you become involved in social & neighbourhood activities with the parents, the children will have an opportunity to meet and get to know each other.

• At family meetings, get your children to share their settling-in experiences.

• Getting the children off to a good start at school is important. Keep in touch with school staff and check their school work. Periodically talk with your kids about their feelings regarding school – looking for ways to turn negatives into positives. Help them to see the advantages of putting a little extra effort into schoolwork and make sure they get extra help wherever needed.

• Be especially ready to help your child through the first weeks: as a listener and encourager, as a homework consultant, and as a willing driver to events and friends’ houses. (Soon enough they’ll find ways to get around on their own).

• If they’re slow at making friends at school, help the children find friends outside school – for example, at the Y or within arts or volunteer groups. There are other kids out there who share your kids’ interests.

Latest real GDP reports (September +6.2%, October +3.7%, November +4.9%) confirmed the positive trend in our economy and BoC prediction of 3.3% growth for Q4 finally seems pretty real. We have to understand that current interest rate is an emergency rate, set to prevent critical failure and collapse. Now a low rate, not the emergency rate is needed.

Our country is in more favourable situation than our southern neighbour, or most of the European economies. Canadian households' credit situation is acceptably healthy (foreclosures were never a serious issue here) and boosting demand for natural resources from Asia (once again) will represent substantial additional income for Canadian economy.

The last but not least – Canadian real estate market is doing so well, that some fear it is a start of just another bubble. Indeed, I have to agree that extremely low interest rate is not healthy for the market in the long term (and I have to add that I disagree we witness another bubble now).

However, home buyers don't have to be afraid – low interest rate will be probably kept for several years more, making the housing affordable.

If you were following our Toronto real estate news section, you can probably remember how the market was completely frozen in the winter getting some life in the spring and finally turning into boosting numbers at the end of year. But the overall numbers were a bit lost in these turbulences, so we bring you result summaries for the whole 2009.

GTA realtors reported 87,308 sales; 17% percents more than in 2008. Similar numbers were reported in the years 2004-2006, only the record year of 2007 boasted with higher sales (93,193 homes sold). Even people who didn't participate were profiting because of the healthy real estate market. As Tom Lebour, president of TREB, said: "The strong residential real estate sector was a key contributor to overall economic recovery in Canada.”

Average price reached $395,460, four percent up when compared to 2008. This price jump can be credited mainly to the end of 2009, when item inflow onto MLS couldn't keep the pace with the boosting demand. However, Jason Mercer, TREB’s Senior Manager of Market Analysis notes: "A greater supply of listings in 2010 will see home prices grow at a sustainable pace."

In the 2010, GTA housing market will most probably sail in calmer waters, especially considering supply response and expected interest rate growth.

Keele and Annette

352 Quebec Avenue

Published in Friday's Globe and Mail Real Estate Section, JAN 29, 2010

• 352 QUEBEC AVENUE, TORONTO
• ASKING PRICE: $609,000
• SELLING PRICE: $605,000
• PREVIOUS SELLING PRICE: $515,000 (2005); $435,000 (2005); $275,000 (2001)
• TAXES$4,201 (2009)
• LOT SIZE: 20 by 120 feet
• DAYS ON THE MARKET: 14
• LISTING AGENT: Julie Kinnear, Royal LePage Real Estate Services Ltd.

This renovated three-storey duplex is located on a prime tree-lined street within steps of established schools and recreational facilities in the High Park community, and newer urban hot spots in the Junction.

"It's good value for a detached residence south of Annette Street," agent Julie Kinnear says. "You're still within walking distance to Bloor [Street], but also close to all those cool stores and independent places in the Junction."

The 2,187-square-foot house is currently separated into two units, including one on the main level and the other on the second and third floors.

"That one was set up ideally for this market where it's becoming more expensive to buy," Ms. Kinnear says. "You can buy it and rent it for a while. Then as you mature financially and your family grows, you would take over the whole house and convert it back into a single-family [home]."

Each unit is equipped with a bathroom, kitchen and laundry appliances and private outdoor space, as well as its own furnace, updated wiring and new boiler. "Everything was really well divided up for two units," Ms. Kinnear says. "That was the strength of it."

The main floor apartment contains a living room; a bedroom with a tandem office; a galley kitchen and a dining room with sliding doors to the deck, private backyard and garage.

The unit above contains two bedrooms on the third floor and principal rooms on the second floor, including a sunroom, living and dining rooms and kitchen.

The latter has a deck with a spiral staircase, which provides a second exit point. "It's a very good safety feature and also a convenient feature for the main floor [residents] so they didn't have a big eyesore," Ms. Kinnear adds.

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 February, 2010 at midnight

Some realtors feel that they simply chose a wrong career and start looking for other alternatives. Markham sales rep Phu Nhi Trac decided to make use of his knowledge gained during his real estate career and started a 'gardening' job in several dozens of rented houses. Soon, he turned this venture into country's largest illegal marijuana operation.

Trac's network of marijuana farms was discovered when a landlord, upset after being refused to check her property for several times, suddenly arrived at the rented house. It was completely empty, except of a bundle of hoses leading to the basement, which was turned into a weed jungle. "We were very, very upset, to put it mildly," said the owner on the interview. No wonder.

Police finally discovered a chain of 54 farms across GTA and seized 27,550 plants worth about $30 millions. Mr. Trac was a managing head of a small group (including another real estate agent), which used fake IDs to cheat more than fifty owners during years 2000-2002. And he was a skillful manager – he was well informed about the growing process, studied the market prices and even tried to find franchisees for his criminal activity.

Mr. Trac, who's real estate license with Living Realty until it was revoked last year, was sentenced to 14 years; with some terms to be served concurrently it means he will spend 5 years behind bars. Also his wallet will undergo hard times – he was fined over $1 million.

Eric Chan, ex-president of Living Realty, said Trac "never had any concern with his honesty and integrity and had won a major award for top producer of the branch office in the industrial commercial investment sector.”

Well, we have always advised you to take the process of choosing an agent seriously. Luckily, I can guarantee you that gardening is not a very common hobby of realtors in Toronto. And if you feel suspicious about our green lifestyle section, I recommend you to browse it carefully first…
 

Click here to view the just released new edition.  Catch up on some chit chat, the real estate market and all the fun goings on in the lives of The Julie Kinnear Team!

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See the video in our Roncesvalles Village real estate guide or right here:

The Government of Ontario has made a number of changes to the property assessment system that went into effect in the 2009 property tax year. These changes include the introduction of a four-year assessment update cycle and a phase-in of assessment increases.

Currently, the assessed value of properties in Ontario is based on a January 1, 2008 valuation date. MPAC’s last province-wide assessment update took place in 2008 and was based on a January 1, 2008 valuation date.

To provide an additional level of property tax stability and predictability, the market increases in assessed value between 2005 and 2008 will be phased-in over four years. The phase-in program does not apply to decreases in assessed value. Any market decrease in the value of a property is applied immediately and reflected on your most recent Property Assessment Notice.

The change in assessed values and the phased-in assessment values for the 2009 to 2012 property tax years are listed on the 2008 Notices. There is a difference between the 2008 Current Value Assessment (CVA) (the destination value) and the current year’s phase-in value.

The current year (which can be 2009, 2010, 2011 or 2012 taxation year) phase-in value is the assessed amount that the municipalities or the local tax authorities use to calculate the annual property taxes. An example of this is as follows:
Current year (2010) Phase-in CVA=$250,000
Total Municipal Tax Rate= 1 %
Total Municipal Tax burden = $250,000 x 1 %= $2,500.
The 2008 CVA is not used until 2012 since this is the destination value.
The municipalities/local taxing authorities set property tax rates and the province sets the education tax rate. MPAC’s assessed values are used to determine these taxes.

How MPAC Assesses Properties

MPAC’s mandated role is to accurately value and classify all Ontario properties in compliance with the Assessment Act and related regulations. To establish a property’s assessed value, MPAC analyzes property sales in a community to determine the CVA. This method is used by most assessment jurisdictions in Canada and throughout the world.

When assessing a residential property, they look at all of the key features that affect market value. Five major factors usually account for 85% of the value: location; lot dimensions; living area; age of the structure(s), adjusted for any major renovations or additions; and quality of construction. Examples of other features that may affect a property’s value include: number of bathrooms; fireplaces; finished basements; garages and pools. Site features can also increase or decrease the assessed value of your property such as traffic patterns; being situated on a corner lot; and proximity to a golf course, hydro corridor, railway or green space.
 

For more information on how MPAC assesses property, please visit their website at www.mpac.ca.