Tag Archives: Cottage

Buyers Should Brace for an Unprecedented Real Estate Frenzy in Long Point

Buyers can expect mad competition for cottages to continue.During the course of marketing this cottage for sale the seller received multiple offers to choose from. Bidding wars are the new normal in today’s ultra competitive real estate market.

LONG POINT –  Buyers can expect the mad competition for cottages to continue with many selling for over-asking prices amid multiple offers.

In a seller’s market, the way to achieve the best price is to have the most exposure in the shortest amount of time. Erie’s Edge Real Estate Ltd. has the local knowledge and experience to position properties that will create a favourable response from today’s buyers. The result is often competing offers also known as “bidding wars.”

With the average price of a detached house hitting $1.3 million last month in Toronto, a significant uptick in buyers from the GTA looking to invest in property elsewhere are driving prices way up.

Additionally, millennials priced out of urban areas are opting for the cottage as recently featured in The Globe and Mail.    

Generating and presenting multiple offers is a complex process. A seller in receipt of competing offers has several possible options to consider. They are:

• Accept one and reject the others;

• Sign one back and reject the others;

• Reject all offers, sending them back to the buyers for improvement;

• Sign one back and hold on the other offer(s) pending a response from the buyer getting the sign back;

• Hold on to one or more offers while sending the other offer(s) back to the buyers for improvement: or

• Hold on to a couple copies of each offer, and send the other copies back to the buyers for improvement if they so desire.

Each of the above options has positive and negative consequences for the seller. If you’re thinking of selling and want our assistance in obtaining the most amount of money and navigating the complexities of the current real estate market we can be contacted at 519.586.7922 or www.LongPointBeach.com.

 

Your Real Estate Fix of the Week 04.12.18

From country retreats to charming vacation homes this week’s new listings are packed with potential! You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


Beautiful home in a charming town! Natural light spills through the windows and skylights at 14 Fairview Drive in Waterford brightening the spacious rooms. Bask in more natural light on the rear deck overlooking the fenced yard or on the cozy covered front balcony. The 3 bedrooms and large lower level with a walk-out will make the perfect home for your family!


A luxurious country ranch-style to call home. Sitting on a large lot with a farm land view, this beautiful brick home is just minutes from town.  You’ll find 3 bedrooms and sprawling living spaces at 500 Plank Road in Tillsonburg. It’s time for your family to retreat to this convenient country home.


Create the perfect space for your business in this unique building.  Nestled in an ideal downtown Simcoe location, this 2-level space comes with ample parking and endless possibilities. 


4 bedrooms, 3 bathrooms and a 2 car garage on a 1 acre beautifully landscaped lot. This spacious country bungalow is featuring some stunning updates, including an epic eat in maple kitchen. You’ll find this country dream home and it’s backyard workshop at 773420 Highway 59 in Norwich.


Relax, off the beaten path, at this charming vacation home. Spend your summer days on the warm wrap around porch, or looking out over the canal from your own backyard. The rustic kitchen, classic country character and spectacular views create the perfect place to escape. Located just a short walk from the breath taking Long Point beach at 27 West Point Road.


For more information on these or any listings please leave a comment, or give us a call 519-586-7922.

Your Real Estate Fix of the Week 04.05.18

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Refreshing views, inspiring cottage locations, and perfect income potential are what you’ll find with this weeks new listings! You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


This stunning lake house is offering an unobstructed waterfront view and channel convenience. You’ll fall in love with the bright open concept living area, vaulted ceilings and coastal staircase. 215 Ordnance Avenue in Turkey Point is absolutely a rare find. This is your chance to relax in to the charming and refreshing vacation home of your dreams.

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Feel those good cottage life vibes at 16 Walmsley Street in Turkey Point. This amazing open concept cottage with a spacious loft is just a short walk to the beach. Enjoy the luxurious vaulted ceiling, cozy fireplace and tons of natural light. Its time to make memories with your family at this beach town cottage retreat.

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Just steps from the sandy Long Point beach, bordering acres of crown land you’ll find this charming winterized vacation home! 300 Erie Boulevard in Long Point offers a fantastic flow, a cozy wood stove and wonderful bright spaces. Enjoy your days on the wide screened in porch taking in all that nature has to offer.

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A charming duplex with a wealth of potential.  141 Bidwell Street in central Tillsonburg has seen quite a few recent updates and is ready to show them off.  It’s so ready to be your perfect starter home or your opportunity to create additional income!

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For more information on these or any listings please leave a comment, or give us a call 519-586-7922.

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How Much Will I Owe in Capital Gains Tax if I Sell My Cottage?

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When you and your family decide that it is time to pack up the bug spray, sunscreen and bathing suits and list your family cottage you may have a lot of questions.  Like, who gets to keep the water wings? Where did your favourite blue bathing suit go? And, who wants to help use up the last of the fire wood and marshmallows?

There’s also a good chance that you’re going to have a few questions for your local REALTOR®.

Such as “What will I owe in capital gains tax if I sell my cottage?”
With the sale of any property, you are required to report it to the CRA and pay the applicable capital gains tax. This includes the sale of your beloved family cottage. The CRA does offer an exemption on this appreciation tax to principal residences, which could possibly apply to your cottage. Let me explain.
 
If you enjoy your cottage as your vacation home and it IS NOT  your principal residence then you would be required to pay the applicable capital gains tax at time of sale. How much exactly? The amount that you will owe depends on the appreciated value from the time you purchased the cottage 
 
For example,  if you purchased the cottage for $200,000 ten years ago and now plan to sell the cottage for $500,000 due to appreciation and improvements you’ve made over the years you would owe capital gains tax on $300,000 (the difference between sell price and purchase price).
 
On the other hand, if your cottage IS your primary residence then you may be exempt from paying any capital gains tax.
Although the sale of a principal residence still needs to be reported to the CRA it is exempt from being taxed on capital gains.
In some scenarios, your cottage may start off as your vacation home but become your primary residence after some time.  If this is the case, the tax owed on capital gains is based on the appreciation before it became your principal residence. 
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For example, you purchased the cottage for $200,000 ten years ago but moved in to the cottage as your primary residence after five years of ownership. At that point the cottage had appreciated in value to $250,000.  In the five years since you’d been living there, you completed improvements increasing its value further and intend to sell it now, another five years later, for $500,000.
 
In this scenario you would only owe capital gains tax on $50,000 (the value of the property at the time it became your principal residence less the original purchase price). You would be exempt from paying the capital gains tax on the additional $250,000 in appreciated value over the five years that the cottage was your principal residence.
 
Contrary to popular belief, capital gains are not taxed at your marginal tax rate. Only half (50%) of the capital gain on any given sale is taxed all at your marginal tax rate (which varies by province). On a capital gain of our example of $50,000 for instance, only half of that, or $25,000, would be taxable. For a Canadian in a 33% tax bracket for example, a $25,000 taxable capital gain would result in $8,250 taxes owing. The remaining $41,750 is the investors’ to keep.
 
If you’re thinking of selling your cottage we can help make sure you are asking the right questions and getting the answers that you need. You can reach out to us at 519.586.7922.

Your Real Estate Fix of the Week 1.25.18

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 We’ve got your real estate fix of the week and it’s filled with big dreams!  Build your dream home, find your dream cottage, or get that investment property you’ve been dreaming of. You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


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28 Old Vienna Road is offering an amazing investment opportunity in Tillsonburg. This property is in a prime location close to both shopping and trails. With R3 zoning, you can picture building your own multifamily complex in an ideal spot in trendy Tillsonburg.


This stunning sunny cottage is the perfect family get away. The sprawling green yard and spacious sunroom flow in to the cottages immaculate interior at 14 Clubhouse Road. This cozy cottage is exactly where you want to spend your summers, along the shores of Lake Erie in an spectacular beach town.

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171 Lynedoch Road is an impressive vacant lot waiting for you in the quaint hamlet of Lynedoch. This is your chance to build your dream home with a yard backing on to big creek in a quiet community. This one is rare and beautiful find!

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This beautiful beach front cottage in Long Point could be your dream come true! The modern design and vaulted ceilings at 59 Woodstock Ave are stunning.  But the epic lakefront view from both the open concept indoor living space and the amazing outdoor patio area just steps from the beach making this cottage an incredible retreat.

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If you’d like more information on these or any listings please leave a comment, or give us a call 519-586-7922.  Happy house hunting!

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Your Real Estate Fix of the Week 12.21.17

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A country retreat, a beach town cottage, an income property and a suburb bungalow.  Just like Santa’s sack, this week’s new listings have something for everyone! You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


Nature will be knocking on your back door at 229 Perney Road in Waterford.  This 4 bedroom country retreat is nestled on a private lot overlooking open fields just a few steps from the Heritage Trail. Nature is calling, you must go!

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This main street listing has great investment potential! 151 Main street in Delhi could be your chance to own an income property, or a space of your own.

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This incredible cottage at 14 Clubhouse Road in Turkey Point is the perfect place for your family get-away. Spend your summers along the shores of Lake Erie in this epic beach town. Enjoy your own large green yard, spacious sunroom, sunny back deck, rooms filled with natural light and all so close to the sandy beach.

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This cozy bungalow is waiting for you. 115 Richardson is located in a fantastic Port Dover neighbourhood close to downtown dining & shopping, schools, and grocery stores.  Did we mention that it’s also near the beach? Get your hands on this cozy keeper!

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If you’re thinking of selling, reach out to an Erie’s Edge REALTOR® today at 519-586-7922 to discuss wether the timing is right to sell now, or in the new year.

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Your Real Estate Fix of the Week 11.30.17

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Looking to move right in, retreat to the beach, renovate, rebuild or invest? You have to see these new listings that are boasting with epic views and great locations! You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


Big and Beautiful! This spacious open concept home is nestled on a quiet street at 46 Centre Street in Vienna. There is so much space to enjoy with a fully finished basement, 3+2 bedrooms, and an outstanding covered porch on an awesome lot just shy of an acre.

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Soak up your summers beach side in Long Point! The epic views of the lake can be taken in from both the open concept indoor living space and the amazing outdoor patio area at 59 Woodstock Ave. The vaulted ceilings and modern touches of this stunning beack front cottage are ready for you to enjoy.

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Picture your dream home on your own slice of country paradise! This stunning 1.1 acre lot at 605 Charlotteville East Quarter Line Road in Vittoria is ready for a renovation or a rebuild. The potential can’t be missed with the incredible location and views!

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Investing in a property? Might as well invest by the beach! This duplex at #4-21 Brock Street offers 2-1 bedroom apartments within walking distance to the beach, shops and restaurants in beautiful Port Burwell!

 


If you’re thinking of selling, reach out to an Erie’s Edge REALTOR® today at 519-586-7922 to discuss wether the timing is right to sell now, or in the new year.

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Your Real Estate Fix of the Week 09.28.17

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This week’s new listings are offering up lake life comforts and town life conveniences from Tillsonburg to Port Rowan to Long Point and Turkey Point. You can view all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


When the lake is calling… settle in to a home that’s walking distance from the Harbour! 24 Backus Drive in Port Rowan is walking distance to both the Harbour overlooking Long Point’s inner bay and downtown amenities.  However, you may not want to leave this bright, open concept home because the large back deck and wooden pergola is calling too!

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180 Quarter Town Line in Tillsonburg has in town conveniences with country vibes. It’s beaming with natural light through large windows and sits on a 1/2 acre lot. The large back deck with built in gazebo is the perfect place to forget that you’re in town and get lost in a stunning sunset.

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Large green yard, spacious sunroom, sunny back deck, filled with natural light and close to the sandy beach.  We know, we just described the perfect summer retreat! This incredible cottage at 14 Clubhouse Road in Turkey Point could be the perfect place for your family get away.

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Hey Boaters! This Boathouse is located on the Old Cut channel, Long Point’s widest and deepest channel offering the quickest access to Long Point Bay. Let’s get fishing!

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If you’d like more information on these or any of our listings please leave a comment, or give us a call 519-586-7922.  Happy house hunting!

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Your Real Estate Fix of the Week 08.31.17

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This week’s new listings are all about front porches, beach vibes and back decks! You can check out all of our listings on our website at www.eriesedge.com/for-sale. Click on the images below to view the detailed listings.


Nestled in a north-end Tillsonburg neighbourhood, 85 James is surrounded by nature. With mature trees and beautiful landscaping, the back deck could be your favourite spot to relax.  Although, the large open family room with vaulted ceilings and gas fireplace over-looking that beauty back yard… might take the cake.

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The cure for anything is a cottage at the beach! Lighten up in this naturally lit, open concept cottage with a wrap around porch in Turkey Point. Just a 2 minute walk from the beach, 25 Head street is a little piece of beach vacation heaven.

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Simply put, this home has character. This beautiful brick century house on a 1/2 acre property at 679 Concession 10 Townsend rd in Waterford evokes feelings of family, tradition and home. Period baseboards and trim, exposed brick and that beautiful country front porch create the perfect setting for your families story.

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If you’d like more information on these or any of our listings please leave a comment, or give us a call 519-586-7922.  Happy house hunting!

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5 Things To Know About Real Estate Deposits

From a seller’s perspective, a deposit is a sign of good faith that the buyer, who has contracted to purchase the property, will complete the transaction on the date specified in the contract.

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Here are some common questions I’m often asked about real estate deposits.

1.  When does a deposit have to be paid?

The standard agreement of purchase and sale states that the deposit must be submitted “herewith” or “within 24 hours of the acceptance of this Agreement”. Neither alternative is legislated but an accepted good practice.

The reason that buyers are encouraged to come up with the deposit immediately is to demonstrate to the seller commitment to complete the transaction. 

Sometimes a buyer may not be able to submit the deposit within 24 hours for good reason. For example, when a buyer lives out of the area in which the property is being purchased, it’s unlikely that even using courier the required deposit will be received within 24 hours. 

This happens quite often to me when selling cottages. Buyers often live two, three or more hours away from where they are interested in buying a cottage. Often times the decision to purchase a cottage is made a couple of days after viewing the cottage when the buyer has returned home from cottage country. The exchange of a deposit cheque cannot be completed in person unless the buyer decides to drive all the way back to provide the cheque. 

In such instances, I simply change the pre-printed 24 hour term in the agreement of purchase and sale to an additional 24 or 48 hours to allow the buyer time to courier or express post the deposit to my office. 

In today’s technological age the use of e-transfers for submission of deposits are becoming increasingly popular thereby making the standard 24 hour submission of deposit quite simple.

2.  Can the buyer get out of a deal by refusing to pay the deposit?

No. Once the agreement of purchase and sale has been accepted by both buyer and seller, a binding contract exists. Failure to deliver the deposit may be determined a breach of contract by the Buyer. 

I’ve heard it said that a good lawyer will be able to get a client out of a real estate contract should the buyer change his or her mind. This is not the case in my experience. Your REALTOR® should understand contract law and all of the complexities and legalities to making certain that real estate contracts are airtight once all conditions have been waived or fulfilled. 

Should a buyer wake up the morning after with a serious case of buyer’s remorse and refuses to pay the deposit, the seller can sell the property to another buyer. In the event that the seller gets less money than the initial buyer agreed to pay the seller can sue the buyer for the difference (plus legal fees).

3.  What happens to the deposit money once paid?

In most circumstances the deposit is held in trust by the seller’s real estate brokerage. When a deposit is held by the real estate brokerage in trust it is protected by insurance so that even if the brokerage goes bankrupt the buyer’s deposit is protected.

4.  What happens to the deposit money if the buyer is not able to fulfill conditions?

Most agreements of purchase and sale contain conditions such as allowing the buyer to arrange a mortgage, have a home inspection completed or have the septic system inspected to make sure that it is in proper working condition, for example.  

In the event that a buyer is unable to fulfill conditions within the specified time frame indicated in the contract, the deal becomes null and void. For instance, if a buyer is not satisfied with the results of a home inspection the buyer can choose not to proceed with the purchase and request the return of the deposit. However, if the seller suspects that the buyer did not act in good faith in trying to satisfy the condition, the seller may refuse to release the buyer’s deposit. In this circumstance the deposit must remain in the brokerage’s trust account until a court order indicates who is entitled to the deposit.

In the event that the Seller does release the Buyer from the transaction, which is the case more often than not, the Buyer’s deposit shall be returned in full.

5.  How large of a deposit is required when making an offer?

This is an initial decision of the buyer which must be agreed to by the seller (just like any other term or condition of an offer). 

If a buyer’s offer includes a deposit of $1,000 yet the seller doesn’t think it’s enough to illustrate the buyer’s commitment to complete the transaction, the seller might counter offer requesting an increased deposit. From a seller’s perspective, a deposit is a sign of good faith that the buyer, who has contracted to purchase the property, will complete the transaction on the date specified in the contract. As I noted at the beginning of this blog, a deposit from a buyer indicates to the seller a sign of commitment. Meaning that the buyer is committed to completing the transaction in good faith and on time.  

While there is no right answer or minimum amount required, the size of the deposit should be given very serious consideration by both buyer and seller. As a buyer, put yourself in the seller’s shoes for a minute. How much deposit money will give a sense of confidence that the buyer is committed to the transaction? To read more about how much of a deposit a buyer should submit with an offer, click here

The purchase and sale of real estate for most people is one of, if not the single largest financial transaction of their life. REALTORS® are able to provide you experienced guidance and counsel when it comes to navigating the complexities and legalities of real estate contracts.

If you have any questions about deposits or any other real estate matters, feel free to “leave a comment” below and we’ll get in touch.