Tag Archives: Home Owner

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 Easiest Move Ever

Moving is a BIG chore and it can become overwhelming!  To help our clients stay organized we’ve invested in a technology to provide you with your own online and personal moving concierge to handle all of the stressful and time consuming details of moving.

Welcome to your moving conciergeWhat is an online personal moving concierge? It is the easiest way to complete all of your move related tasks. It brings together everything that you need for your move in one simple dashboard so that you can stay organized and save time. We were so impressed with everything that it can do and how simple it is to use, we know you are going to love it!

Through your personal dashboard, you will be able to completely manage your move. Let’s assume you need to transfer your electricity provider before your move date.smart phone - moving made simple  In your dashboard, you’ll simply click “Move Your Utilities,” and select “Electricity.” Two clicks are all it takes, and your transaction will be completed securely and directly with your provider, so you never have to worry about sharing private information. And that’s just the tip of the iceberg!

How about notifying businesses of your new address? The average household has to notify 15 to 20 different businesses of their move. That’s painful. Through your dashboard you can change your addresses with hundreds of business and even order your new government I.D. cards.

From finding local moving companies, or finding local charities to pick up unwanted stuff, to taking steps to prepare your new home for your arrival your online personal moving concierge with Erie’s Edge Real Estate will make moving simple.

your easiest move ever2

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.

Why the New Mortgage “Stress Test” Will Stress Homebuyers Out

Why the New Mortgage “Stress Test” Will Stress Homebuyers Out
Huge changes to mortgage rules were announced earlier this week.
 
Yet another “stress test” will be applied to mortgages.  Currently, homebuyers who have carefully saved a downpayment of 20% or more aren’t required to purchase mortgage default insurance. Only mortgage consumers with down payments less than 20% require default insurance which costs anywhere from 2.80% to 4.00% of their mortgage amount.
 
However, new rules on mortgage lending take effect next year and result in a major decrease in affordability for responsible homebuyers.  Uninsured mortgages now require the minimum qualifying rate to be the greater of the five-year benchmark rate published by the Bank of Canada (presently 4.89%) or 2% (200 basis points) above the mortgage holder’s contracted mortgage rate.
 
So, what does this mean?  Let’s take a look at the numbers.
Bank of Canada Five-Year Benchmark Rate
The Bank of Canada’s current five-year benchmark is 4.89% which in this example is greater than the buyer’s mortgage rate plus 200 basis points.
 
A family with an annual income of $50,000, a 20% downpayment at a five-year fixed rate of 2.84% amortized over 25 years can currently purchase a home for $370,547.
 
Under new rules buyers will have to qualify at the five-year benchmark rate of 4.89% meaning that they will only be able to afford $301,095  A difference of $69,452.
2% Above Contracted Rate
 In a case where the mortgage rate, plus the 2% stress test is greater than the The Bank of Canada’s current five-year benchmark rate, here’s how the numbers add up.
 
A family with an annual income of $50,000, a 20% downpayment at a five-year fixed rate of 2.84% amortized over 25 years can currently purchase a home for $360,942.
 
Under new rules buyers will have to qualify at the five-year benchmark rate of 4.89% meaning that they will only be able to afford $295,350.  That’s a difference of $65,592.
If you’re in the market to buy a new home and would like to talk about these new mortgage rules and the current real estate market, we can be contacted at 519.586.7922 or stop by our office at 1019 Bay Street, Port Rowan.  All of our contact information is also available on our website at www.EriesEdge.com

Fall Maintenance for Your Home

 

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1. Make Exterior Repairs

Mice need only a tiny gap to be able to sneak into your house and raid your pantry and with colder weather coming, all of the little critters out there will be looking for warm places to make a home.  Fill small holes and cover any large gaps with heavy-duty hardware cloth to keep the wildlife outdoors.

2. Clean the Eavestrough

After leaves have fallen, clean out the gutters and downspouts, flush them with water, inspect joints, and tighten brackets if necessary.  Clogged gutters are one of the major causes of ice dams.  Replace old or damaged gutters with new ones that have built-in leaf guards.

3. Inspect the Roof

Make sure the roof is in good shape.  Inspect for missing and loose shingles. “Ice, rain, and woe combined with rapidly changing temperatures and humidity wreak havoc on roofs,” says Jay Butch, Director, Contractor programs for CertainTeed Roofing. “Your roof is your first defence in protecting your home.  It’s better to proactively deal with repairs in the fall than to discover a leaky roof during a snowstorm.

4. Ready the Heating System

Have your heating system checked by a licensed heating contractor.  Heating systems will use fuel more efficiently, last longer, and have fewer problems if properly serviced.  Get your wood stove and fireplace in working order.  Gary Webster, Creative Director of Travis Industries, suggests that you examine your wood stove or fireplace insert’s door gasket for a tight seal.

5. Reverse Ceiling Fans

Change the direction of you ceiling fan to create an upward draft that redistributes warm air from the ceiling.  Clean your humidifiers regularly during the heating season.  Bacteria and spores can develop in a dirty water tank resulting in unclean moisture misting out into your room.

6. Cover Air Conditioners

Vacuum internal part of air conditioners.  Remove units from windows or wrap the outside box with an approved tarp or plastic air conditioner cover to prevent rusting of vital parts.

7. Clean Yard Equipment

Prepare your yard equipment for storage.  This includes draining fuel from all gas-operated equipment such as lawn mowers, leave blowers, and chain saws. Check to see that all of your snow equipment is up and running before the first flurry falls.  Organize your snow clearing gear.  When snow arrives you’ll want to have shovels, roof rakes, and snow blowers where you can get to them.

8. Prepare Deck for Winter

Clean porch and deck furniture, and look for any needed repairs.  Cover and store outdoor furniture and barbecues in a protected area.  Make sure all soil is emptied from pots and planters. Dirt left in clay pots will freeze and cause the pots to crack.

9. Shut Off Outside Taps and Store Hoses

Protect your outdoor taps from freezing temperatures by shutting off water to them before the weather dips below freezing.  Drain hoses and store them indoors.

10. Clean Dryer Vents

Lint buildup in in dryer vents can make your dryer work less efficiently and even cause a fire.  Cool, dry weather increases static electricity, which can ignite lint that has built up, so now is a key time to get that lint out.  You can hire a duct cleaning specialist to clean the vents for you, or clean the vent yourself.  If you do it yourself:

  • Unplug your dryer
  • Shut off the gas if you have a gas dryer
  • Pull the dryer slightly away from the wall
  • Loosen the clamp holding the hose
  • Use a vacuum attachment or lint brush made for dryer hoses to clean out the hose and behind the dryer
  • Replace the hose, gently move the dryer to the wall (without crushing the hose) and plug it in.

FALL MAINTENANCE CHECKLIST