Mortgages?

So why did the government introduce the 35/40 year amortization in the first place if they were going to take it back?

25 year amortization was fine and I don't believe anyone was asking for a longer period to pay off their mortgage. I am assuming change is good and we are now going back in the right direction or are we?

Even, I as an investor, like the 35/40 year amortization so that my rent I receive on a property allows me to break even OR make a profit. However, what it is doing is stopping progress.....why would we go backwards and not forwards?

Any comments email us at feedback@karenpaul.com

Merry Christmas

Santa is being good to us this Christmas in regards to mortgage rates!

Canadians were expecting an increase in mortgage rates this past week, however the variable rates are still available as low as 2.25%.

The long term fixed rates have gone up about 20 basis points......still very affordable for buyers.

Look at our next newsletter for a more in-depth look at mortgage rate!

We are looking forward to a very HOT market in January to kick off the New Year!

TECHNOLOGY.....

Recently The Karen Paul Team initiated QR codes as part of our advertising program on our signs, newspaper advertising, and feature sheets.

DID YOU KNOW? In Canada there are 21,455,000 cellphones in use which equates to .64 phones per person. Everyday there is a new survey telling us that there is an ever increasing number of people addicted to the cell phone usage.

Noteably one current survey from Handmark suggests that 40% of people are using mobile devices to follow New/Events.

MY POINT: Technology is moving at a very fast pace; every day we are relying more and more on our smartphones, Ipads, Blackberry's and Iphones.....therefore the logical move for the Karen Paul Team is to advertise your properties on these fast moving/ever up to date platforms.

DO YOU KNOW WHO THESE PEOPLE ARE?

Mark Zuckerberg
Jack Dorsey
Reid Hoffman

Social media is taking over.....click on the links above and follow me for up to date information on the market, trends, listings and more.

Getting to that magic and wonderful day, don't forget that little gift for someone who needs it the most.
Karen

Market Update

As fall shifts to winter our housing market becomes depleted in listings. Our Buyers are still searching for that perfect town home/detached or perhaps just an investment property.

For those who love statistics; it takes 31 days on average to sell a home; average price in Burlington is $340,000. Town homes have increased in value by 2% over the last year because of the ease of lifestyle.

The "GO" train has stepped up its service in Burlington with three stops; Aldershot, Fairview, Appleby. Transportation has become mindless to and from Southern Ontario.

New homes in this price range still sell with line ups on opening day and sold out in weeks. Those first time buyers want to desperately invest.

A touch of education from a woman that watches, reads, works and sells 24/7

ANYTIME IS THE RIGHT TIME!

A very common question is asked this time of year, "Is this the right time of year to list my home" the correct answer is "anytime of the year is the right time". Let me explain, the INTERNET has become our CATALOGUE for shopping, whether it be for cameras, trips, or HOMES. If a BUYER is browsing WWW.REALTOR.CA (Canadian Multiple Listing Service) just for fun, they may spot a home that is very affordable and send an email thru to their agent or the listing agent requesting a viewing. There is a 65% chance they may PURCHASE that property because they have seen and sold themselves even before the viewing. The stats on this occurring are very high as 96% of the BUYERS are shopping on the NET. And most times they are NOT even looking for a home.

Your home, with expert photos applied and virtual tours, becomes part of that CATALOGUE. It is just a matter of time. WHAT A WONDERFUL WORLD WE LIVE IN!!!

The festive season approaching, the shopping done, don't forget to donate that toy

HST & THE HOUSING MARKET

The July implementation of the harmonized sales tax (HST) in Ontario and British Columbia and the 2 percentage point rise in Nova Scotia’s existing HST has caused much volatility in consumer prices in those provinces. Perhaps the most interesting aspect of the HST, how¬ever, is its interplay with the housing market; while sales of existing homes are not directly taxed under the HST, some transactional services such as related financial and legal representation are and incorrect homebuyer perceptions have led to a false sense of urgency. The housing market, in which a yearlong recovery has already come and gone, has recently begun to trend downwards as the frontloading of home purchases and construction that occurred in 2009 and 2010 unwinds and housing demand dwindles. At the time, Canadians were taking advantage of record low interest rates and entering the market en masse which caused hous¬ing activity to surge. This was even further exacerbated by prospective homebuyers in BC and Ontario, Canada’s two largest housing markets, trying to close before the July 1st HST implementation. Indeed, since peaking in December 2009, existing home sales across Canada have declined by more than a fifth. Of particular note is that more than 90% of the weakening in nationwide sales has come just in the last four months between March and July. In turn, and likely on account of the HST, sales in BC and Ontario plummeted by almost 32% since March. To put a few actual numbers behind that, between those months, nationwide sales declined by 11,700 of which 71% came from BC and Ontario. So while it is difficult to separate the underlying trend from the effects of the HST announcement, it is clear that it did play a role. So where does the housing market go from here? Unfor¬tunately, the trend underlying the slowdown in home sales was merely exacerbated by the HST, not the cause of it. Slowing housing demand is more a reflection of past ero¬sions in affordability in conjunction with rising interest rates rather than a tax in just two provinces. Indeed, every single province, save for PEI, has recorded declining home sales this year, hence it is not just an issue for BC and Ontario. TD Economics expects continued contractions in nationwide home sales throughout the rest of this year and into 2011 which will eventually bleed into prices. On an annual basis, overall home sales are forecasted to contract by 11.6% next year, while prices are forecasted to decline by 3.0%.
• As published in the weekly bottom line, Francis Fong, Economist

FAQ ABOUT HST BUYING & SELLING

Transition Rules:
1. All services performed, due and payable prior to July 1st, 2010-only 5% GST would apply. (Example: Listing taken, offer accepted and transaction closed before to July 1st, 2010)

2. All services performed after June 30th,2010-only 13% HST would apply. (example:Listing taken, offer accepted and transaction closed after June 30th,2010)

3. 90/10 Rule-Services started prior to July 1,2010 and completed after June 30th,2010 - might be exempt from HST based on a transaction rule that states that if 90% or more of the work is completed prior to July 1st, 2010 then only 5% would apply. Conversely, if 10% or less of the services performed before July 1St, 2010, then only 13% will apply. ( A form must be completed for satisfaction of this 90/10 rule)

4. Blended GST/HST Rule - Services started prior to July 1st, 2010 and completed aftter June 30th,2010- that does not satisfy the 90/10 rule transitional rule for HST exemption will be subject to a combination of GST and HST in proportion to the work performed before and after July1st,2010.

BUYING A HOME & HST
There is no HST on a resale home or a preowned home
There is HST built into the price of NEW CONSTRUCTION

Keep watch for more informative real estate news!