By Warren McNeil

For Budget 2009, the government of Canada has introduced some new tax credit programs designed specifically for first-time home buyers and home owners. Some of these will be of good benefit if you are a first-time home buyer who is in the market to buy a home or have plans to do some renovations.

Here is a breakdown of each of the programs:

First-Time Home Buyers’ Tax Credit

This tax credit will assist first time home buyers with closing costs relating to the purchase of a home. 15% credit will be applied to a $5000 limit and will provide up to $750 to assist in paying the closing costs associated with first time purchases completed after January 27, 2009.

Home Buyers’ Plan Withdrawal Limit

To provide additonal access to RRSP savings to purchase or build a home. They are increasing the withdrawal limit from $20,000 to $25,000.

The Home Renovation Tax Credit

• Valid from January 27, 2009 to February 1, 2010 persuant to agreements entered into after Jan 27, 2009
• 15% can be claimed on expeditures that exceed $1000 but less then $10,000 and will provide up to $1350 in tax relief
  

  Examples of HRTC Eligible and Ineligible Expenditures

  Eligible

  • Renovating a kitchen, bathroom, or basement
  • New carpet or hardwood floors
  • Building an addition, deck, fence or retaining wall
  • A new furnace or water heater
  • Painting the interior or exterior of a house
  • Resurfacing a driveway
  • Laying new sod

  Ineligible

  • Furniture and appliances (refrigerator, stove, couch)
  • Purchase of tools
  • Carpet cleaning
  • Maintenance contracts (furnace cleaning, snow removal, lawn care, pool cleaning, etc.)

Benefits of the HRTC—Example

• Sally and Ed are a couple who have recently purchased a house. To take advantage of the temporary HRTC, they decide to replace their old windows and improve the insulation in their home in 2009, instead of waiting, incurring $10,000 in expenditures. After taking into account the $1,000 minimum threshold, a 15-per-cent credit will be available on $9,000 in eligible expenditures, providing tax relief of $1,350.

Source: http://www.budget.gc.ca/2009/pamphlet-depliant/pamphlet-depliant2-eng.asp

I think many people will find these tax credits valuable. I personally like the first-time home buyers tax credit. This gives first-time home buyers one more reason to get into the market. Every bit counts! I am really hoping that the low interest rates stay around for a little while. Better yet, how about forever! 

Thanks for reading!

Warren & Melanie McNeil | Sales Representatives, Team McNeil | Re/Max Twin City Realty, Brokerage
( 519.579.4110 | * Click Here to Email | 8 www.clickthathouse.com, www.teammcneil.com/blog

By Warren McNeil

One of my favourite days of year is quickly approaching. That day is when the Elmira Syrup Festival takes place. This year it taking place on April 4. 2009.

See http://www.elmiramaplesyrup.com/

Every year there seems to be more people and food choices. I often eat my way up and down the street trying out all the different food options. I have to say that my favourite foods are the Lions Apple Fritters, buggy wheels, pancakes and back bacon on a bun.

It’s simply amazing how many people attend the festival. If you have never been, I highly recommend it.

Thanks for reading!

Warren & Melanie McNeil | Sales Representatives, Team McNeil | Re/Max Twin City Realty, Brokerage
( 519.579.4110 | * Click Here to Email | 8 www.clickthathouse.com, www.teammcneil.com/blog

By Warren McNeil

Somebody asked me to post something on our blog about the effect of the high unemployment rate in our area. Unfortunately, I am not a market analyst and I don’t have a crystal ball so it is very difficult for me to properly respond to this request. My guess is that the effects won’t be positive but it doesn’t take a rocket scientist to figure that out. The question is, how much of an effect will it have. Hopefully the people who are losing their jobs will be able to get new better jobs. In terms of how the local real estate market is right now I see a continued trend in move-up buyers and first time buyers getting into the market. The month-to-month stats show some promise, but year-over-year stats show that our numbers are down. Keep in mind, we’re comparing to some record years.

I don’t like to speculate about anything. I like to work with factual data. That’s why I like to study the board stats. The stats tell the real story.

Kitchener Waterloo Real Estate Board Statistics for February 2009

Like I said in previous posts, I am very optimistic that we will get through this and our market will be stronger then ever. All we have to do is just get through it.

“It always gets better!”

Thanks for reading!

Warren & Melanie McNeil | Sales Representatives, Team McNeil | Re/Max Twin City Realty, Brokerage
( 519.579.4110 | * Click Here to Email | 8 www.clickthathouse.com, www.teammcneil.com/blog

Mississauga, Ontario (March 11, 2009) – A report released today by RE/MAX confirms that entry-level purchasers are now the engine driving home-buying activity in almost every major centre in Canada.

The 2009 RE/MAX First-Time Buyers Report highlighting first-time buying activity in 32 residential housing markets across Canada found that improved affordability is prompting many first-time buyers to get off the fence, out of the rental, and into the market. While a sense of caution still prevails, more and more first-timers are finding it hard to pass up the chance to become homeowners in today’s buyer-centric real estate climate. Increased inventory and longer days on market coupled with the lowest lending rates ever are presenting opportunities that have not been seen in almost a decade.

“While the current economic crisis has caused some first-time buyers to either take it slowly or apply the brakes, home ownership remains a top priority for those who are able to take advantage of reduced carrying costs, rock bottom interest rates and lower house prices,” explains Michael Polzler, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada. “Affordability has greatly improved and buyers are firmly in the drivers’ seat in just about every market we surveyed. The new reality is that homeownership remains well within reach for most first-time buyers.”

In Waterloo Region we’re seeing a mix of first-time and move-up buyers. Move-up buyers are able to take advantage of better pricing for larger homes. Even though they might take a little less for their existing home. First-time homebuyers are being cautious because of the day-to-day negative media. However, they know that now is a good time to get into the market.

Thanks for reading!

Warren & Melanie McNeil | Sales Representatives, Team McNeil | Re/Max Twin City Realty, Brokerage
( 519.579.4110 | * Click Here to Email | 8 www.clickthathouse.com, www.teammcneil.com/blog

Here are board statistics for the Kitchener-Waterloo real estate board. Please note that the information here is only based on residential real estate. If you would like a more detailed report, please contact Melanie or Warren.  

Dec 2008-Jan 2009

(All Areas, Single-Detached)

(All Areas, Total Residential)

In addition to the above stats, there was a 44.7% increase in the total number of sales for all areas in all house types between February and the previous month (January).

There was a 7% increase in the total number of homes for sale in February compared to January so there is a bit more selection for buyers now.

Some more points to make note of:

·         In January the federal government announced it will invest $5.35 in The Digital Media Convergence Centre in downtown Kitchener with additional funding coming from several local high tech firms.

·         In January the Kitchener-Waterloo average price declined by less than the national average on a year-over-year basis.

·         In February City of Waterloo councillors approved the new Balsillie School of International Affairs in Uptown Waterloo.

·         Low lending rates

·         Waterloo Region’s diversified employment mix

Thanks for reading!

Warren & Melanie McNeil | Sales Representatives, Team McNeil | Re/Max Twin City Realty, Brokerage
( 519.579.4110 | * Click Here to Email | 8 www.clickthathouse.com, www.teammcneil.com/blog