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Category Archives: Multiplex-Multi Residetial Investment

Instant price estimates for property. Is it impossible or possible?

10 Saturday Dec 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, current real estate affaiirs, Houses, Interest Rates, Leasing/Renting, Let's Talk Investing, Listing of the Day, Mortgage, Multiplex-Multi Residetial Investment, Neighbourhoods, New Canadian Immigrants, New Development/Week, Opinion, POWER OF SALE-FORECLOSURE PROPERTY, Pre-Construction, Re/Max, Real Estate info & ideas

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cma, comparative market analysis, Instant price estimates for property. Is it impossible or possible?, Market Evaluation, property


Instant price estimates for property. Is it impossible or possible?

 There are some online appraisal websites where if you click on the tab and enter an address it will ask a few questions and give you a value estimate. You are required re-read the cautions about the service as it does have some limitations. That being said, I have played with the tool, and it is not too scary as thought but if it is accurate? !!!

Some REALTORS do over the phone evaluations. And they claim to be exactly and precisely right. Although I will do them in certain areas that I am highly familiar with I always recommend allowing a proper market evaluation as some things you may not mention to the REALTOR may alter the value either up or down, and ultimately not seeing the property does not allow us to give you the best Market Value Evaluation. If you would like an instant price estimate look in your mail for a local & Licensed REALTOR who advertises over the phone market evaluations and call them. I however caution you that you would do yourself far better service to contact a reputable Licensed REALTOR and invite them to your home. Good Luck and have a great day.

I’ve been in the business for a time and never do estimates from my desk or home office. Sorry, I’m not Magician and a house can be from zero to a hero, I mean unpredictable on unseen. In essence, I do not offer “no service kind of service”. There is none in the world who can guess what your house is like, how much you have spent in upgrades over the home ownership period in comparison to your neighbour who still has green shag carpets from 1969 and war torn hardwood from dog nails etc. When you pay nothing, you generally get nothing. I will not sign an estimate if I do not have all the facts considered and reviewed personally.

If you do want a quick and very rough estimate of the value of your home, I would look to your assessed value for property tax purposes, the report you get every year from MPAC report. It will likely give you an idea if your property is worth $300,000 or $3 million. But if you want more insight then call a reputable realtor for a proper comparative market analysis (CMA). This analysis CMA will give you a better idea what your property would actually sell for in the current market conditions.

Many factors come into play for CMA – what is the overall real estate market like, what is the market like for your specific property, what condition is your property in and how does your property compare to similar homes currently listed right now, so it is called comparables. For example, if your neighbor with a fairly similar property accepts a low ball offer because he already bought the new home and he is anxious to sell this old one that is unfortunately going to affect the market value of your property. Most importantly this estimate is likely to be a range rather than a single number, like the estimate of price could be “from $410k to $430k”. Some properties are difficult to put an accurate price on and the sales price obtained could be within a large range. Other properties are in an area with many similar properties that have sold recently and are a little easier to put a price on within a fairly tight range agreeable to seller.

I spend a considerable amount of time on each comparative market evaluation that I do and I think my clients would agree that I provide useful information that would be difficult to obtain automatically or instantly. I think in this situation the phrase “If it is worth doing, it is worth doing right” is so true. I always research properties on-line and off-line before I actually visit the property to do a market evaluation. It is getting easier to find information online but there really is no substitute for seeing a property, its setting and comparable properties in person.

Hopefully the ‘instant’ Market Evaluation that you seek will not be used to determine the price to list your home. You can probably get one or two evaluations at no expense to you anyway from your local real estate brokerages. It may not be instant, but it will be customized for your unique home and not just made up ones & instead of based on last year’s statistics for all homes in the city.

I am sure you will agree with the personal talk we had thru this article, if you like to have your property evaluated you can contact me directly on cell and arrange appointment or contact me online to set an appointment of your property.

Email: vg_remax(AT)yahoo.ca , Direct: 647.267.6338, web: www.vijaygandhi.com

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Experienced and Savvy Investors Buy in December to March Winter Months

10 Saturday Dec 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, Business, condo assignment investments, Condos, current real estate affaiirs, Development, FAMILYLAW & REAL ESTATE, FSBO, Green Investment, H.S.T., Home Reno (adds The Value), Houses, Interest Rates, International, Leasing/Renting, Let's Talk Investing, Listing of the Day, Mortgage, Multiplex-Multi Residetial Investment, Neighbourhoods, New Canadian Immigrants, New Development/Week, Opinion, POWER OF SALE-FORECLOSURE PROPERTY, Pre-Construction, Re/Max, Real Estate info & ideas, Rental, Search, Stories!, Toronto Politics, TREB/OREA/CREA, Uncategorized, Unemployment, Videos-Pictures, VIP Condo

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Investors Buy in December to March Winter Months


Experienced and Savvy Investors Buy in December to March Winter Months

Why do a Large Number of Experienced and Savvy Investors Buy in December to March Winter Months?

For a few personal reasons, some people have no time limit (expiration of apartment lease, etc.)and so they really wait until they find something they love to do before purchasing like marrying, which can come at any time, including the snowy winter months as well.

Also, if a property has not sold over the busier season (spring and summer), owners as well as realtors tend to drop the asking price a little to attract more investors to the property. So sometimes, you can get a better deal on a property in the winter months as opposed to the months where the most investors are searching the housing market. Investors think that there is a possibility of better deal to be had….but, many times it is not so….you need right investor agent who can navigate thru this surfing and searching.
There is one good reason is that there are fewer sales and fewer investors in these months so some investors see that as a great time to get a deal. Some houses do not show up in the realtor search as it is in the batches on system for group of years like under 5yrs, under 10 years & so on, so those comes up as soon as the new year starts, also the possible search criteria also changed altogether.

If a seller has placed a conditional offer on a new home and theirs is still not sold by the winter, you may also have an easier time negotiating as they have deadlines to sell their home, so the Investor have an opportunity.

Each selling and purchasing decision is based on a variety of different motives. It’s often case by case and so does just like credit ratings its all depends on individuals.

Don’t be fooled though, some of the statistics I have seen have shown that December is also a good time to sell, and recent years you can verify mls.ca stats, winter months are not bad producing months as well, Because fewer inventories on the market mean less competition, and if investor is in need and do not want to wait despite realtor try to wait for new match property comes up in market. Sometimes good houses do not sell because the competition is fierce and even though they may be priced and war of price so hot, to-gather competitively, they fail to sell because if excess inventory levels. Over major portion of the houses listed in GTA last year in December sold. This made it the number: one month to sell if you want to have an edge on the market inventory if you think and plan properly and willing to take risk with good experience agent and with lots of ice over the head.

Some of my clients save up and buy this time of year. Most investors do not want to be bothered over the Christmas season but investors know that offers at this time of year are scarce at best. This is the time of year when those of us agents that represent investor investors are the busiest. Feel free to contact me if you wish to explore the investor market, there are a lot of great deals out there right now that my clients are snapping up! Would you like to wait or go depends on your choice.

Another good reason is that in winter months only serious sellers remain in the market just like serious investors and price the property accordingly well to sell and ready to make a deal before spring market competition starts. Negotiations take place well when both parties are motivated. An experienced Realtor can get you a great deal in winter.

Always hire the proper agent: www.vijaygandhi.com and save you a lot…

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South Unionville Square is a new condo project by Mady Development Corporation- Book Here your unit

11 Sunday Sep 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, Condos, Interest Rates, Let's Talk Investing, Multiplex-Multi Residetial Investment, POWER OF SALE-FORECLOSURE PROPERTY, Pre-Construction, Real Estate info & ideas

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South Unionville Square is a new condo project by Mady Development Corporation- Book Here your unit


South Unionville Square is a new condo project by Mady Development Corporation- Book Here your unit

September 11, 2011 by resalehomeandcondo

South Unionville Square is a new condo project by Mady Development Corporation currently under construction at 8323 Kennedy Road in Markham. The project is scheduled for completion in 2012. Available condos range in price from $190,000 to $377,000. The project has a total of 253 units.

 


DEVELOPMENT NAME : South Unionville Square
DEVELOPER(S) : Mady Development Corporation
PROJECT TYPE : Condominium
ADDRESS : 8323 Kennedy Road
NEIGHBOURHOOD/CITY : Markham
STATE/PROVINCE : Ontario
PROJECT WEBSITE : http://www.southunionvillesquare.com
E-MAIL : nancyhui@tradeworldrealty.com
SALES CENTRE HOURS : Saturday – Thursday: 12pm to 6pm
CONSTRUCTION STATUS : Construction
ESTIMATED COMPLETION : 2012
SELLING STATUS : Selling
TOTAL NUMBER OF UNITS : 253 units
NUMBER OF STOREYS : 12 storeys
UNIT SIZES : From 520 to 920 Square Feet
CEILING HEIGHTS : From 9’0″ to 10’0″ Feet
SALES COMPANY : Tradeworld Realty Inc., Brokerage
ARCHITECT(S) : Turner Fleischer Architects Inc.
INTERIOR DESIGNER(S) : Gordana Car Interior Design Studio

 

PRICES(AVAILABLE UNITS) : From $190,000 To $377,000
MONTHLY MAINTENANCE : $0.42 Per Square Foot Per Month

 

SIGN UP NOW FOR ACCESS and PRICELIST for BOOKING!!!

 

The Residences Floor Plans
One Bedroom

  • Lily, 1 Bedroom, 622 sq.ft.
  • Tulip, 1 Bedroom, 578 sq.ft.
  • Iris, 1 Bedroom, 671 sq.ft.
  • Jasmine, 1 Bedroom, 648 sq.ft.
  • Pansy, 1 Bedroom, 615 sq.ft.
  • Daisy, 1 Bedroom, 664 sq.ft.

Two Bedroom

  • Bamboo, 2 Bedroom + Terrace, 1,072 sq.ft.
  • Crocus, 2 Bedroom, 810 sq.ft.
One Bedroom + Den

  • Gardenia, 1 Bedroom + Den, 650 sq.ft.
  • Violet, 1 Bedroom + Den, 699 sq.ft.
  • Buttercup, 1 Bedroom + Den, 710 sq.ft.
  • Marigold, 1 Bedroom + Den, 767 sq.ft.
  • Magnolia, 1 Bedroom + Den, 778 sq.ft.
  • Golden Rod, 1 Bedroom + Den, 706 sq.ft.
  • Mimosa, 1 Bedroom + Den, 752 sq.ft.
  • Poppy, 1 Bedroom + Den, 765 sq.ft.

for booking and registration contact thru:

http://www.vijaygandhi.com/index.php?p=258

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Bellaria Residences, Tower 4, Booking started, Vip Broker Event on Sep 6, Dont Miss it !!

01 Thursday Sep 2011

Posted by gtarealtyagent in condo assignment investments, Condos, current real estate affaiirs, Development, Let's Talk Investing, Multiplex-Multi Residetial Investment, Pre-Construction, Real Estate info & ideas

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Bellaria Residences, Booking started, Dont Miss it !!, Tower 4, Vip Broker Event on Sep 6


Bellaria Residences, Tower 4, Booking started, Vip Broker Event on Sep 6, Dont Miss it !!

September 1, 2011 by resalehomeandcondo

NEW: download the information package containing the Price List, Bellaria-floorplans and Bellaria-Worksheet-for site

Best Location to live or invest in Vaughan, Ont
Major Mackanzie and Jane and Rutherford block


LAUNCHING ON Sep 06, 2011

Please e-mail the completed worksheet to vg_remax@yahoo.ca  or
Fax it directly to the builder at: 905 471 7441

***The Sales are now Open to VIP agents ONLY!***

Register Online now to receive more information and an opportunity to preview and purchase before we launch to the general public.
Contact one of our Real Estate Sales Representative Vijay Gandhi  if you have any questions.

Bellaria-Worksheet-for site

Bellaria-floorplans AND PRICELIST CALL NOW OR

REGISTER YOURSELF AND GET VIP DISCOUNTS.

By registering with us you will have Access to Prices and Floor Plans, Also you will be informed for upcoming new projects.

www.vijaygandhi.com | www.gtarealtyagent.com | www.condosupermarket.com

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Monthly Real Estate and Mortgage Stats Report

06 Wednesday Apr 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, Business, condo assignment investments, Condos, current real estate affaiirs, Development, FAMILYLAW & REAL ESTATE, FSBO, Green Investment, H.S.T., Home Reno (adds The Value), Houses, Interest Rates, International, Leasing/Renting, Let's Talk Investing, Listing of the Day, Mortgage, Multiplex-Multi Residetial Investment, Neighbourhoods, New Development/Week, Opinion, POWER OF SALE-FORECLOSURE PROPERTY, Pre-Construction, Re/Max, Real Estate info & ideas, TREB/OREA/CREA, VIP Condo

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Monthly Real Estate and Mortgage Stats Report


Bank of Canada Interest Rate

January 18, 2011
1.00 %
March 1, 2011
1.00 %
April 12, 2011
Next meeting date

Source: Bank of Canada


Bank Prime Lending Rate

January 19, 2011
3.00 %
March 2, 2011
3.00 %
April 13, 2011
Next meeting date

Source: Bank of Canada

Conventional Mortgage – 5 Year Rate*

February 9, 2011
5.44 %
February 23, 2011
5.44 %
March 28, 2011
5.34 %

Source: Bank of Canada
*Determinant for high ratio mortgage variable qualifying rate


US Federal Reserve Board Discount Rate

January 26, 2011
0.00 % – 0.25 %
March 15, 2011
0.00 % – 0.25 %
April 27, 2011
Next meeting date

Source: US Federal Reserve


Exchange Rate $CDN($US)

February 23, 2011
1.0115
March 16, 2011
1.0083
March 31, 2011
1.0314

Source: Bank of Canada


Government of Canada Bonds

Bond Type February 23, 2011 March 16, 2011 March 30, 2011
1 year Treasury Bill
1.36 % 1.24 % 1.35 %
3 year Benchmark
Bond Yield
2.15 % 1.87 % 2.13 %
5 year Benchmark
Bond Yield
2.61 % 2.44 % 2.71 %
10 year Benchmark
Bond Yield
3.32 % 3.13 % 3.29 %

Source: Bank of Canada


Total New Housing Starts (Seasonally adjusted and annualized)

Province December
2010
December
2009
January
2011
January
2010
February
2011
February
2010
Newfoundland/Labrador
3,200
4,200
3,900
3,600
2,700
3,600
PEI
1,100
1,300
800
600
500
400
Nova Scotia
2,700
2,900
4,500
2,800
3,800
5,400
New Brunswick
3,100
3,600
3,500
5,200
1,800
2,400
Quebec
47,800
51,600
48,600
55,100
44,600
47,800
Ontario
46,400
56,300
51,500
55,500
65,800
70,100
Manitoba
6,500
3,400
3,900
5,100
4,700
4,900
Saskatchewan
7,500
4,500
6,200
6,400
8,800
4,600
Alberta
21,000
27,800
19,600
23,500
21,900
27,300
British Columbia
30,000
22,200
28,100
27,600
27,300
30,100
CANADA
169,300
177,800
170,600
185,400
181,900
196,600

Source: CMHC Housing Now – March 2011 and March 2010. This seasonally adjusted data goes through stages of revision at different times of the year.


Average MLS® Resale Price for Local Markets

City February 2011 February 2010
Halifax
$ 261,638
$ 251,072
Saint John
$ 175,371
$ 168,735
Quebec
$ 244,326
$ 227,461
Montreal
$ 300,471
$ 287,151
Ottawa
$ 337,797
$ 318,894
Toronto
$ 454,470
$ 431,509
Hamilton/Burlington
$ 331,741
$ 314,656
Winnipeg
$ 228,180
$ 215,230
Saskatoon
$ 287,202
$ 291,054
Regina
$ 272,609
$ 263,753
Calgary
$ 400,879
$ 389,388
Edmonton
$ 311,674
$ 316,927
Vancouver
$ 791,604
$ 662,741
Victoria
$ 490,970
$ 481,246


April Stats Chart 1
Source: CREA

This blog communication is for public awareness and public responsibility, for client and customer benefit and best intrest in mind.

Vijay Gandhi is an Re/max Real Estate Sales Rep. &  independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.

 


Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today!We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!
*condition apply/sub. to availability

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

Please, forward my name, phone number & e-mail address to your friends, relatives, clients…

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Mortgage Advertising in this Digital Age- Accurate or Misleading

09 Wednesday Mar 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, Business, condo assignment investments, Condos, current real estate affaiirs, Houses, Interest Rates, Let's Talk Investing, Mortgage, Multiplex-Multi Residetial Investment, Opinion, Real Estate info & ideas, Stories!, Uncategorized

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Accurate or Misleading, Mortgage Advertising in this Digital Age


Mortgage Advertising in this Digital Age- Accurate or Misleading

With mortgage advisors increasingly using the web to advertise their services, it’s becoming more and more important to ensure the information being posted is accurate and not misleading.

This applies to all kinds of mortgage-related advertising, be it rates, promotions or specific services being offered.

Advertising by mortgage professionals is governed largely by:

  • The Competition Act
    • Civil cases involving false or misleading advertising can carry up to a $750,000 fine for an individual on a first order, and up to a $1 million fine for each subsequent order. Corporations could face fines up to $10 million on a first order, and $15 for subsequent offences.
    • Criminal cases, where intent is proven beyond a reasonable doubt, carry unlimited fines set by the court and/or 14 years in prison on an indictment. A summary conviction carries a maximum $200,000 fine and/or one year in prison.
  • The Canadian Code of Advertising Standards
    • The three clauses of the CCAC that apply to broker advertising are #1 (Accuracy and Clarity), #3 (Price Claims) and #4 (Bait and Switch).
  • The Canadian Association of Accredited Mortgage Professionals’ Code of Ethics
    • Rule 8 of the CAAMP Code of Ethics: All Members shall apply, set and maintain standards of honesty, truth, accuracy, fairness and propriety in advertising and shall comply with the Canadian Code of Advertising Standards, as established from time to time by Advertising Standards Canada.
  • Provincial laws related to the mortgage broker industry and consumer protection.
    • In Ontario, for example: Mortgage Brokerages, Lenders and Administrators Act, 2006 (point 27), as well as the Financial Services Commission of Ontario.
    • In Alberta, the Real Estate Council of Alberta specifically outlines rules with regards to false advertising, and more specifically a page dedicated to internet advertising.
    • In B.C., the Mortgage Brokers Act prohibits brokers from making “false, misleading or deceptive statements in any kind of advertising”. Section 14 of the Mortgage Brokers Act reads: “Examples of misleading advertising include providing sample monthly repayment figures for mortgage loans requiring no repayment of principal without identifying that the payments represent only the interest, or advertising payment amounts for mortgage loans with unusually long amortization periods that do not specify the amortization period. Advertisements containing repayment figures should contain an indication of the amortization period used to determine the repayment figure. Likewise advertisements for interest only mortgages should specify that the repayments do not include any principal amounts.”

This may come as a surprise to some, but mortgage advisors are governed by the same advertising rules that apply to large corporations in Canada. The onus is on the professional, to ensure any representation you make to the public in any media is accurate and not misleading in any way, including special offers on rates.

False or misleading advertisers face perhaps the biggest compliance risk under the Competition Bureau’s Competition act.

The advertising rules in the Competition Act are of general application, meaning they apply to mortgage professionals and anyone else. The Bureau has the power to investigate cases on its own accord, or based on complaints from consumers or fellow brokers.

Any broker involved in advertising their business or rates, be it online or via more traditional advertising methods, should take note that laws were recently stiffened and resulted in fines increasing, in some instances 100-fold. This seems outlandish, but a company alleged to have made false or misleading advertising could be investigated by the Competition Tribunal, culminating in a hearing before the Competition Tribunal or courts and a fine of up to $10 million for a first order, and $15 million for each subsequent order. For individuals, the fines can reach $750,000 for a first offence and $1 million for each subsequent order.

“Making a false or misleading representation, whether as a broker or any other advertiser, has very serious consequences”. “Whether you meant the misrepresentation or not, if it’s out there you’re subject to that risk.”

If it’s proven that you made a misrepresentation to the public “knowingly” or even “recklessly”, the case becomes criminal and in a worst case scenario you could be open to heavy fines at the discretion of the criminal court, jail time and even a class action lawsuit for damage arising from the misrepresentation.

“If a competitor or a consumer has a real issue with false or misleading advertising, a complaint to the Competition Bureau with a request that it investigate is one option”. But it’s certainly not the only recourse.

Across the country there are a number of provincial laws that provide protection against false and misleading advertising. The Ontario Consumer Protection Act is one example, which has a complaints and investigation process. Maximum fines for non-compliance reach up to $250,000. The Act also provides for directors or officers of companies convicted of an offence (who failed to take reasonable care to prevent the company from committing the offence) to be liable for fines of up to $50,000 and/or imprisonment for a term of not more than two years less a day.

Trade associations on the other hand, such as the Canadian Association of Accredited Mortgage Professionals, do set out guidelines and advertising standards but have much less power of enforcement.

In terms of official complaints that have been made to CAAMP regarding inaccurate or questionable advertising practices, there have only been eight out of the roughly 130 complaints filed last year. That was confirmed by CAAMP’s Vice-President of Education and Professional Affairs, who also serves as the organization’s ethics investigator.

As per him complaints about false or misleading mortgage rates from CAAMP members, for example, is not something that he has had to deal with on a regular basis.

One such complaint came from someone accusing another mortgage broker of advertising rates that the complainant believed to be too low and unattainable. It turned out the mortgage broker had given up part of his commission to lower the rate @#$%..

While there have been several complaints related to brokers offering rates that appeared too low (like the one above), brokers will sometimes use points they accumulate or even part of their finders fees in order to buy down the rate.but point is that do they disclose to their clients????

“Essentially the broker can substitute the rate the borrower is paying.”

Most advertising-related ethics complaints are dealt with by way of a simple warning and a settlement is reached before further actions have to be taken.

If an individual is accused of outright lying, it would first have to be proven before the issue can be brought to the ethics chair, who then makes a recommendation on how to proceed. If serious, the complaint could end up before an ethics hearing, which is heard before three individuals from CAAMP’s National Ethics Committee.

But again, with more than 12,000 members and only 130 complaints last year, CAAMP official said the industry can boast a fairly good track record. “I think people are realizing they need to be careful when it comes to their advertising,”

“I think it’s generally an annoyance with other agents” that tend to generate complaints. “Generally advertising that tends to be unprofessional annoys other agents.”

For consumers looking for a channel to file complaints against mortgage advisors, Advertising Standards Canada would likely be their first choice.

“If a customer felt aggrieved, it’s a simple and logical place to go,” he said. While ASC has no power to impose fines, or force a company to pull or change their deceptive advertising, that if an advertiser fails to voluntarily comply with the decision of an ASC Council, ASC will, among other things, advise the exhibiting media (e.g. broadcasters and newspapers) of the advertiser’s failure to cooperate and request the media no longer runs the advertising in question.

Asked if there is an exception mortgage advisors can fall back on in the case of unintentionally posting false rates or failing to keep their rates updated, “Intention really has nothing to do with whether there has been a contravention of the false or misleading advertising provisions of the Competition Act, only whether the Competition Bureau proceeds down the civil or criminal track.”

And, of course, in determining the size of your possible fine $$$$$$$$$!

Have A Question? Submit Your Question Below

And We’ll Get Back To You Right Away

Housing market stabilizing: CMHC

Click here to see the Active Listings currently for sale in key Toronto GTA neighborhoods.  If you see anything of interest and would like further information or to arrange a private viewing, please call or e-mail us and we’d be glad to provide our unparalleled service to you.

This blog communication is for public awareness and public responsibility, for client and customer benefit and best intrest in mind.

Vijay Gandhi is a Re/max Real Estate sales Personnel & Independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.


Have you considered a 50/50 Mortgage?

As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today! We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:
vijaygandhi.com , icxforsale.com & torontomortgagetrends.com
Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. to availability
Contact us:

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/

“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.
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Buying a Home: Electrical Current Safe. Safety 1st .

23 Sunday Jan 2011

Posted by gtarealtyagent in current real estate affaiirs, FAMILYLAW & REAL ESTATE, FSBO, Home Reno (adds The Value), Houses, Let's Talk Investing, Multiplex-Multi Residetial Investment, POWER OF SALE-FORECLOSURE PROPERTY, Real Estate info & ideas

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Electrical Current Safe, Electrical Safety Authority, Hiring a Contractor, Safety 1st .


Sunday, January 23, 2011

Buying a Home: Electrical Current Safe. Safety 1st .

Buying a Home: Electrical Current Safe. Safety 1st .

Buying a home is one of the largest investments that we can make, and you want to minimize any surprises.

It is recommended that a record search be conducted with the Electrical Safety Authority to ensure that no outstanding work orders exist on the property that you are considering purchasing. Your lawyer can request a record search to check if ESA has any recorded outstanding defects on the property, or open notifications.

If you are not sure the wiring meets Ontario Electrical Safety Code requirements, you can request that the owner arrange for a general inspection as part of the terms and conditions of purchase. The general inspection will identify if there are any electrical defects that need to be corrected. The existing owner will be responsible for correcting any defects – or can negotiate with the potential purchaser to assume responsibility.

In addition, it is recommended that you ask the previous owner for copies of “Certificates of Inspection” for any electrical installations/modifications that have been conducted since the original construction of the home.

Home Electrical Safety Test – DIY
do it your self and score your test- evaluation>>>>FREE DOWNLOAD

What you should know about Knob & Tube

Knob and Tube Wiring in Residential Installations

What you should know about aluminum wiring

Aluminum Wiring in Residential Installations

Finding an Authorized Contractor

To find the Authorized contractor nearest you

If you are looking for a listing of Licensed Contractors in Ontario, please click here for the ECRAESA listing of Licensed Contractors.
The Authorized Contractor Program was developed by ESA to recognize those Licensed Electrical Contractors and HVAC Installers who consistently perform Ontario Electrical Safety Code compliant work.
The Biological, Chemical and Mold Testing Report, ESA Cover Sheet, ESA Requirements Checklist and Structural Report (if required) may be submitted by:
E-mail: hygiene.reports@electricalsafety.on.ca
Fax: 1-905-712-7845
Mail: ESA, 400 Sheldon Drive, Unit 1, Cambridge ON N1T 2H9

Grow House Report Cover Sheet ESA Requirements for Inspection of a Site for Reconnection After a Grow House or Meth Lab Operation

Following are links to Professional Listings of persons or agencies that may conduct the required testing in compliance with ESA’s Health and Safety requirements. It is the responsibility of the facility owner to confirm that ESA requirements can be met prior to engaging the services of a person or agency.

CRBOH – Canadian Registration Board Occupational Hygienists Directory of Consultants in Occupational and Environmental Health and Safety – 2007 Public Database Search for Persons Certified for the Practice of Industrial Hygiene by the American Board of Industrial Hygiene

Certificates of Inspection

  • The Electrical Safety Authority is encouraging the public to request copies of the “Certificate of Inspection” for all electrical work done in their homes/businesses. The General Inspection provides the end-use customer with a record that all electrical work in their home/business complies with the requirements defined in the Ontario Electrical Safety Code.
  • The Certificate of Inspection is sent to the permit applicant — ask your contractor for a copy of the Certificate.
This blog communication is for public awareness and public responsibility, for client and customer benefit and best intrest in mind.

Source of Information : http://www.esasafe.com/GeneralPublic/index.php
Vijay Gandhi is an Re/max Real Estate sales Personnel &  independent mortgage planner- industry insider & CENTUM Agent. If you are purchasing, refinancing or renewing your mortgage, contact Vijay or apply for a Mortgage Check-up to obtain the best available rates and terms.

Have you considered a 50/50 Mortgage?
As always, if you have questions about the 50/50 mortgage product and whether it’s right for you, or other mortgage-related questions, I’m here to help!

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today!We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:
vijaygandhi.com , icxforsale.com & torontomortgagetrends.com
Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. to availability
Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*
Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/

“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.
Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Profit, Capital Gains and Losses from the Sale of Real Estate

08 Saturday Jan 2011

Posted by gtarealtyagent in BANK SALE P.O.S. - TAX SALE, Business, condo assignment investments, Condos, current real estate affaiirs, FAMILYLAW & REAL ESTATE, FSBO, Houses, Interest Rates, International, Leasing/Renting, Let's Talk Investing, Mortgage, Multiplex-Multi Residetial Investment, Opinion, POWER OF SALE-FORECLOSURE PROPERTY, Pre-Construction, Re/Max, Real Estate info & ideas, VIP Condo

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Capital Property, Conversion of Real Estate, Farmland and Inherited Land, Income Tax, Inventory and Vice Versa, Sale of Real Estate


Profit, Capital Gains and Losses from the Sale of Real Estate 


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(Income Tax Interpretation Bulletin)

Profit, Capital Gains and Losses from the Sale of Real Estate, Including Farmland and Inherited Land and Conversion of Real Estate from Capital Property to Inventory and Vice Versa

NO: IT-218R

DATE: September 16, 1986

SUBJECT: INCOME TAX ACT
Profit, Capital Gains and Losses from the Sale of Real Estate, Including Farmland and Inherited Land and Conversion of Real Estate from Capital Property to Inventory and Vice Versa

REFERENCE: Section 9 (also subsections 13(7), 45(1) and 248(1), paragraphs 13(21)(c), 54(a), (c), (f) and (g), subparagraph 40(2)(g)(iii) and Regulations 1101(1) and 1102(1)(b))

This bulletin cancels and replaces IT-197R dated August 20, 1979 and IT-218 dated May 26, 1975 and applies with respect to taxation years commencing after the date of its issue. Please note that the comments in IT-102R concerning real property and its conversion from capital property to inventory and vice versa continue to apply to taxation years commencing on or before the date of issue of this bulletin.

1. A gain arising on the sale of real estate will be considered to be business income, property income or a capital gain. This bulletin does not deal with gains arising on the sale of real estate that is or was designated as a principal residence because such gains are dealt with in IT-120R3.

2. The word “business” is defined in subsection 248(1) so as to include, inter alia, an adventure or concern in the nature of trade. This definition can cause an isolated transaction involving real estate to be considered a business transaction. As a business, any gain or loss which arises therefrom is, by virtue of section 9, required to be included in computing income or loss, as the case may be.

3. There is no provision in the Income Tax Act which describes the circumstances in which gains from the sale of real estate are to be determined as being either income or capital. However, in making such determinations, the courts have considered factors such as those listed below: (The list is not intended to be exclusive of any other factor.)

(a) the taxpayer’s intention with respect to the real estate at the time of its purchase;

(b) feasibility of the taxpayer’s intention;

(c) geographical location and zoned use of the real estate acquired;

(d) extent to which intention carried out by the taxpayer;

(e) evidence that the taxpayer’s intention changed after purchase of the real estate;

(f) the nature of the business, profession, calling or trade of the taxpayer and associates;

(g) the extent to which borrowed money was used to finance the real estate acquisition and the terms of the financing, if any, arranged;

(h) the length of time throughout which the real estate was held by the taxpayer;

(i) the existence of persons other than the taxpayer who share interests in the real estate;

(j) the nature of the occupation of the other persons referred to in (i) above as well as their stated intentions and courses of conduct;

(k) factors which motivated the sale of the real estate;

(l) evidence that the taxpayer and/or associates had dealt extensively in real estate.

4. None of the factors listed in 3 above is conclusive in itself for the purpose of determining that a gain arising on the sale of real estate constitutes income or a capital gain. The relevance of any factor to such a determination will vary with the facts of each case.

5. A taxpayer’s intention at the time of purchase of real estate is relevant in determining whether a gain on its sale will be treated as business income or as a capital gain. It is possible for a taxpayer to have an alternate or secondary intention, at the time of acquiring real estate, of reselling it at a profit if the main or primary intention is thwarted. If this secondary intention is carried out any gain realized on the sale usually will be taxed as business income.

6. The more closely a taxpayer’s business or occupation (e.g. a builder, a real estate agent) is related to real estate transactions, the more likely it is that any gain realized by the taxpayer from such a transaction will be considered to be business income rather than a capital gain (see 3(f) and (j) above).

7. The objects as stated in the charter of a corporation often offer little assistance in determining the intention of the corporation when real estate is acquired and later sold. Consequently, in any case where a corporation claims a capital gain in respect of real estate the corporate intention relative to the acquisition and sale thereof will be examined and determined by reference to factors such as those described in 3 above. In some cases (e.g., closely-held corporations) the corporate intention may be indistinguishable from that of its officers, directors and/or shareholders and in such cases their intentions, as based on their past and present conduct with respect to real estate, will accordingly be attributed to the corporation.

8. Passive members of a partnership or syndicate will be in no different position with regard to the taxability of real estate profits than that of the active members. The actions and intentions of the active members will be imputed to the passive members.

9. When the sale of shares in a corporation by a taxpayer is merely an alternative method of realizing profits from the sale of real estate, the profits from the sale of those shares will be taxed as if the real estate itself had been sold.

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Conversion of Real Estate from Capital Property to Inventory

10. Real estate that is held by its owner as capital property may be used by its owner as personal-use property (see definition in paragraph 54(f)) or it may be used for the purpose of gaining or producing income from a business or property. A sale of real estate that is capital property in the vendor’s hands will, as a general rule, give rise to a capital gain or loss, as the case may be, to the vendor (except in the case of a loss on the sale of personal-use property which is nil by virtue of the limitations of subparagraph 40(2)(g)(iii)). However, where real estate is converted from capital property to inventory as discussed in 12 and 13 below, the results will be as follows:

(a) for real estate that is personal-use property its conversion to inventory will constitute a change in use for the purposes of subsections 13(7) and 45(1) with the attendant deemed disposition and acquisition as explained in 11 below; and

(b) for real estate that is used for the purpose of gaining or producing income from a business or property, its conversion to inventory will not constitute a change in use (see also 11 below) and the proceeds from its ultimate sale will be treated in accordance with 15 below.

11. In accordance with the rules in subsections 13(7) and 45(1) property is deemed to have been disposed of for proceeds equal to its fair market value at the time when it undergoes a change in use and to have been reacquired immediately after that time for an amount equal to those same proceeds. The Department considers that the changes in use as described by subsections 13(7) and 45(1) do not include a transfer of property from one income-earning function to another such function of the same taxpayer. Accordingly, it is the Department’s position that subsections 13(7) and 45(1) do not apply where real estate that is used by its owner for the purpose of gaining or producing income from a business or property (e.g., an office building or rental property) is converted by its owner to inventory. The use (by sale) of inventory is still an income-earning function. The same rationale will apply when inventory is converted to capital property provided the property is, immediately after conversion, used by its owner for the purpose of gaining or producing income from a business or property. The comments in 12 to 19 below are predicated on the proposition that subsections 13(7) and 45(1) have no application for the reasons stated above.

12. Vacant land that is capital property used by its owner for the purpose of gaining or producing income will be considered to have been converted to inventory at the earlier of

(a) the time when the owner commences or causes the commencement of improvements thereto with a view to selling it, and

(b) the time of making application to the relevant authority for approval of a plan to subdivide the land into lots for sale, provided that the taxpayer proceeds with the development of the subdivision.

See 23 and 24 below for comments concerning farmland and inherited land.

13. The units in a multi-unit residential apartment, or an office, warehouse storage building or any similar structure that is held as capital property by the owner will be considered to have been converted to inventory at the time when application is made to the relevant authority for approval to change the title to any such building to strata title, provided that the owner proceeds with the sale of the units. See also 18 below.

14. Where the relevant authority rejects an application referred to in 12 or 13 above, and the owner thereafter sells the property en bloc, the sale will ordinarily be treated as a sale of capital property if it would have been so treated had the property been sold before the application was made.

15. Where real estate that is used for the purpose of gaining or producing income from a business or property is converted from capital property to inventory, the action of conversion does not constitute a disposition within the meaning of paragraphs 13(21)(c) and 54(c). It is, however, recognized that the ultimate sale of real estate that was so converted may give rise to a gain or loss on capital account, a gain or loss on income account or a gain or loss that is partly capital and partly income. Accordingly, where such real estate has been converted to inventory, capital gains or losses, if any, will be calculated on the basis that a notional disposition of such property occurred on the date of conversion. The amount of such a notionally determined capital gain or loss in respect of the real estate will be the difference between its adjusted cost base, as defined in paragraph 54(a), (subject to the ITAR rules for property held on December 31, 1971) and its fair market value on the date of conversion. These notional capital gains or losses will be considered to give rise to taxable capital gains or allowable capital losses for the taxation year during which the actual sale of the real estate occurs and will be required to be so reported in that same year. The amount of any income gain or loss arising on actual sale of the converted real estate will be determined in accordance with generally accepted accounting principles on the basis that its initial inventory value is its fair market value on the date of conversion. See 16 to 19 below where the use of these procedures is illustrated by examples.

16. The following examples illustrate the use of the procedures set out in 15 above for non-depreciable capital property.

A B C D
Assumptions:
Property is land Cost of property when acquired (1) $ 1,000 $10,000 $10,000 $10,000
V day value (2) $10,000
Fair market value at date of conversion (3) $15,000 $15,000 $ 8,000 $ 7,500
Cost of additions made after conversion (4) $ 4,000 $ 4,000 $ 4,000 $ 4,000
Proceeds of sale (5) $20,000 $12,000 $ 6,000 $20,000
Notional capital gain
A(3)-(2) $ 5,000
B(3)-(1) $ 5,000
Notional capital loss
C(1)-(3) $(2,000)
D (1)-(3) $(2,500)
Income gain
A (5)-(3)-(4) $ 1,000
D (5)-(3)-(4) $ 8,500
Income loss
B (3) + (4) – (5) $(7,000)
C (3) + (4) – (5) $(6,000)
Effect for tax purposes in year of actual sale of property:
Taxable capital gain or (allowable capital loss) $ 2,500 $ 2,500 $(1,000) $(1,250)
Income gain or (loss) 1,000 (7,000) (6,000) 8,500
3,500 $(4,500) $(7,000) 7,250

17. Where only part of a parcel of land is converted to inventory (e.g., one-half of the parcel is developed for sale as residential building lots), for the purpose of computing business income on the subsequent sale of the converted land the cost of the converted part is considered to be equal to its fair market value at the date of conversion. Similarly, where in a taxation year only part of the converted land is sold, the cost (for the purpose of computing income) of the part sold is the portion of the fair market value at the date of conversion of all the converted land as may reasonably be attributable to that part. The capital gain or loss, if any, on the sale of part or all of the converted land will be computed in accordance with 15 and 16 above.

18. The Act provides rules governing the treatment of proceeds arising on the disposition of depreciable capital property but it does not envisage the possibility that such property may be converted to inventory before its disposition. Accordingly, where, in situations such as those described in 13 above, depreciable real estate is converted to inventory, it is the Department’s position that

(a) the initial cost of the real estate for inventory valuation purposes will be its fair market value as at the time of conversion, and

(b) the ultimate sale of the real estate may give rise to results similar to those described in 15 above.

The classes of property described in Part XI and Schedule II of the Income Tax Regulations are, by virtue of paragraph 1102(1)(b) thereof, deemed not to include property that is described in a taxpayer’s inventory. Accordingly, where depreciable property (e.g., an apartment building) is converted to inventory it ceases to qualify for capital cost allowance for the taxation year during which the conversion occurs and subsequent years, but continues to have an undepreciated capital cost balance in the class of Schedule II of the Regulations to which it was assigned until its ultimate disposition, at which time the class will be credited with the lesser of the cost of the asset and its fair market value at the time of conversion to inventory.

19. To illustrate the conversion of depreciable real estate to inventory and the treatment, for tax purposes, of the proceeds of sale thereof, assume the following:

The property is a 50-suite rental apartment building which, at the time it was acquired by a taxpayer, cost, excluding land (Note (2)) $1,000,000
The undepreciated capital cost of the building as at December 31, 1982 was 900,000
The fair market value of the building when it was converted to inventory (see 13 above) on August 1, 1983 was $2,000,000
Sales were made in 1985 of 20 suites for proceeds of $1,200,000
and in 1986 of 30 suites for proceeds of $2,100,000

In 1985 and 1986, the taxpayer will account for (a) capital gains realized on actual sales (in this example the notional capital gain as at August 1, 1983 was $1,000,000), (b) income from the sale after July 31, 1983 of inventory, and (c) income from the recapture of capital cost allowance, by allocating, on an average per-suite basis, the sales proceeds, cost and capital gain as follows:

1985 1986 TOTAL
Sales proceeds – 20 suites 1985 $1,200,000 $1,200,000
– 30 suites 1986 $2,100,000 2,100,000
$1,200,000 $2,100,000 $3,300,000
Deduct: Lesser of cost and fair market value per suite at the time of conversion to inventory, as credited to the undepreciated capital cost of the class of depreciable property to which the cost of the building was allocated (Note (1))
1985 – 20 suites at $20,000 400,000
1986 – 30 suites at $20,000 600,000 $1,000,000
$ 800,000 $1,500,000 2,300,000
Deduct: Notional capital gain as at August 1, 1983 actually realized
in 1985: 20 x ($2,000,000 – $1,000,000) 400,000 50
in 1986: 30 x ($2,000,000 – $1,000,000) 600,000 $1,000,000
50
Income from sale of inventory (Note (2)) $ 400,000 $ 900,000 $1,300,000
Add: Income – recapture of capital cost allowance (Note (1)) 100,000 100,000
Total income excluding the taxable capital gain $ 400,000 $1,000,000 $1,400,000
Taxable capital gain $ 200,000 $ 300,000 $ 500,000
Total income $ 600,000 $1,300,000 $1,900,000

Note (1): The undepreciated capital cost account for the building, assuming that it was a separate class pursuant to Regulation 1101(1), will appear as follows:

Undepreciated capital cost December 31, 1982-84 $ 900,000
Less: reduction re 1985 sales $ 400,000
U.C.C. December 31, 1985 $ 500,000
Less: reduction re 1986 sales $ 600,000
Recaptured capital cost allowance to be included in income under subsection
13(1)
($ 100,000)

Note (2): Although not shown in this example, the land relative to the building will, except that it is non-depreciable, be subject to the same considerations with respect to the determination of a notional capital gain, income gain, and the reporting thereof in the year of sale.

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Conversion of Real Estate from Inventory to Capital Property

20. Where a taxpayer acquires real estate and allocates its cost to inventory in the taxpayer’s accounting records, such accounting treatment will be considered to represent prima facie evidence that the real estate was initially acquired with the intention of reselling it at a profit at a propitious time (see 5 to 7 above). If such real estate is vacant land, it is the Department’s position that any gain on its sale, as such, will be business income rather than a capital gain. See however, 21 below which discusses the conversion of improved land from inventory to capital.

21. A taxpayer who constructs buildings for sale and who originally intended to sell a particular building soon after it was completed may, however, permanently convert that building from inventory to capital property

(a) by establishing that the original intention to sell the building has been abandoned,

(b) by capitalizing the cost of the building and the cost of the lot (if owned by the taxpayer) upon which it sits, in the taxpayer’s financial records, and

(c) by making use of the building as a capital asset for a period of time in a manner that is more indicative of investing than trading. Examples of such uses are as follows:

(i) the rental of the building on a long term lease which does not provide the lessee with an option to purchase,

(ii) the housing of the taxpayer’s business, or

(iii) the rental of part of the building on terms described in (i) and the occupation of the remainder thereof by the taxpayer for the purpose described in (ii).

The same considerations will apply with respect to real estate, other than vacant land, that was purchased for the purpose of resale.

22. A taxpayer who constructs buildings for sale will not be considered to have converted inventory to capital property when part or all of any such building is temporarily rented for any reason. Rental revenues so received, net of expense, will be included in computing the taxpayer’s income, but since the building will, at all times, be considered to be held as inventory, it will not be eligible for capital cost allowance.

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Farmland and Inherited Land

23. The sale, en bloc or piecemeal, by a taxpayer of

(a) farmland regularly used by the taxpayer for the purpose of gaining or producing income from a farming business carried on by the taxpayer, or

(b) land inherited by the taxpayer

will generally give rise to a capital gain or loss, as the case may be, to the taxpayer except where, for example, the taxpayer

(c) converts such land to a trading property (see 24 below), or

(d) acquired the land referred to in (a) with the intention of reselling it for profit at a propitious time (see 5 above).

24. Parcels of farming or inherited land referred to in 23 above may be difficult to sell en bloc and the land may be sold by subdividing it and selling the lots individually. It is the Department’s view that the filing of a subdivision plan and selling lots thereunder does not in itself affect the status of the gain notwithstanding that such subdivision may enhance the value of such land. A gain on the sale of farming or inherited land will remain a capital gain if an examination of all other facts, both before and after subdivision, establishes this to be so. However, where the taxpayer goes beyond mere subdivision of the land into lots and installs improvements such as watermains, sewers or roads, or carries on an extensive advertising campaign to sell the lots, the taxpayer will be considered to have converted the land from a capital property into a trading property. Where such a conversion occurs see 15 above for treatment of gains or losses arising from the ultimate sale of the property.

Source: http://www.cra-arc.gc.ca/E/pub/tp/it218r/README.html

HTML it218r-e.html (34 KB),
For people with visual impairments, the following alternate formats are also available:
E-text it218r-e.txt (22 KB) ,Braille it218r-e.brf (21 KB)

Info:____real estate__www.vijaygandhi.com__mortgages_____

Whether you are planning to buy-sell-lease-invest your first home or your investment, contact us today!We’d love to hear from you!
Please leave a detail message; I will get back to you soon as possible…

Thanks for visiting my web sites:

vijaygandhi.com , icxforsale.com & torontomortgagetrends.com

Mortgage Rates Are At Historical Lows. Easy OnLine Application. Apply And Get The Best Mortgage Rate!   Variable Mortgage  2.1%   5 Years Fixed  3.49%    Prime   3.00%
*condition apply/sub. to availability

Target for the Overnight Rate
Key interest rate: target for the overnight rate

Vijay Gandhi,
Sales Representative- REALTOR®
RE/MAX Dynasty Realty Inc. Brokerage*

Mortgage Agent – Lic.# M10001947
CENTUM Metrocap Mortgage Corp. Lic.#11074

C: 647-267-6338 (Direct-Leave message or text)
O: 416.335.4335 | 905.471.0002 (page me-Have me)
F: 905.471.7441
E-MAIL: vtgandhi@yahoo.com , vgandhi@remax.net
WEB:  www.vijaygandhi.com , www.icxforsale.com
BLOG: https://gtarealtyagent.wordpress.com/
“YOUR PERSONAL REAL ESTATE & MORTGAGE ADVISOR® FOR LIFE”
Please call me TODAY for a No Obligation Buyer Consultation or Pre-Listing appointment!
The referral of your friends & family is the greatest compliment you can give me. Thank you for your trust.

I am a buyer Bookmark and Share I am a seller

Please, forward my name, phone number & e-mail address to your friends, relatives, clients..

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Capital Gains Tax (Summary & Web Links)

07 Friday Jan 2011

Posted by gtarealtyagent in condo assignment investments, Condos, current real estate affaiirs, FAMILYLAW & REAL ESTATE, Green Investment, H.S.T., Interest Rates, Let's Talk Investing, Mortgage, Multiplex-Multi Residetial Investment, Opinion, Real Estate info & ideas

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Capital Gains Tax, Exclusive VIP Condo Previews


Capital Gains Tax (Summary & Web Links) 

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A capital gains tax (CGT) is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property. Not all countries implement a capital gains tax and most have different rates of taxation for individuals and corporations.

For equities, an example of a popular and liquid asset, each national or state legislation, have a large array of fiscal obligations that must be respected regarding capital gains. Taxes are charged by the state over the transactions, dividends and capital gains on the stock market. However, these fiscal obligations may vary from jurisdiction to jurisdiction because, among other reasons, it could be assumed that taxation is already incorporated into the stock price through the different taxes companies pay to the state, or that tax-free stock market operations are useful to boost economic growth.

In Canada

Currently 50.00% of realized capital gains are taxed in Canada at an individual’s tax rate. Some exceptions apply, such as selling one’s primary residence which may be exempt from taxation.[2] Capital gains made by investments in a Tax-Free Savings Account (TFSA), are not taxed.

For example, if your capital gains (profit) is $100, you’re only taxed on $50 at your marginal tax rate. That is, if you were in the top tax bracket you’d be taxed at approx 43%. Formula for this example using the top tax bracket would be as follows:

Capital gain x 50.00% x marginal tax rate = capital gain tax

= $100 x 50.00% x 43%

= $50 x 43%

= $21.50

In this example your capital gains tax on $100 is $21.50, leaving you with $78.50.

The formula is the same for capital losses and these can be carried forward indefinitely to offset future years’ capital gains; capital losses not used in the current year can also be carried back to the previous three tax years to offset capital gains tax paid in those years.

Corporations who earn capital gains are taxed at their full marginal rate – there is no 50% deduction for them as in the case of individuals. If more than 50% of a small business’s income is derived from specified investment business activities (which include income from capital gains) they are not even allowed to claim the small business deduction.

Capital gains earned on income in an RRSP are not taxed at the time the gain is realized (i.e. when the holder sells a stock that has appreciated inside of their RRSP) but they are taxed when the funds are withdrawn from the registered plan (usually after converting to a registered income fund.) These gains are then taxed at the individual’s full marginal rate.Unrealized capital gains are not taxed.
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____real estate____www.vijaygandhi.com_____mortgages_____

What’s new for capital gains

Topics about Line 127 – Capital gains

Calculating and reporting
How to calculate your capital gains and losses, and complete line 127 and schedule 3 of your return.
Capital losses and deductions
You may be able to reduce your taxable income by claiming capital losses, deferrals, reserves and the cumulative capital gains deduction.
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Related topics

  • Line 217 and 228  –  Business investment loss
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  • Non-resident dispositions

·        Capital Gains Tax on the Sale of Real Estate Properties in Ontario

·        How do I create income from a second home or vacation property?

·        Principal Residence and Other Real Estate : PART-4

·        The tax implications for Canadians buying U.S. property 

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10 ways to Prepare Buying the Right house

01 Wednesday Dec 2010

Posted by gtarealtyagent in Business, current real estate affaiirs, Houses, Let's Talk Investing, Multiplex-Multi Residetial Investment, Neighbourhoods, Real Estate info & ideas

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Buying a house can be a daunting process, but a little planning can ensure that you avoid common mistakes.

The most common mistake home buyers make is that they buy with their heart instead of their head. This often means they pay more than they should or are disappointed when they uncover defects in the home or find out the neighborhood isn’t quite what they thought.

Here are 10 ways to prepare yourself.

1. Be prepared

The best way to avoid this is to be prepared when you buy a home. This means doing research and finding the right agent – should you choose to use one – and other professionals to protect your interests.

2. Why an agent is a good idea

Agents give you objective advice about what a home is worth. The agent will also have connections to lenders and home inspectors to ensure you get the best mortgage rate and that the home is properly inspected before you buy. They will also be able to explain the fine print of any agreement so you know what to expect on closing. Although it is not mandatory to use an agent to represent your interests, you will not have the benefit of the advice and experience of an objective third party before making probably the largest investment that will ever make.

3. How to find an agent

Start by asking family and friends. Look for signs in the area that interest you, especially “Sold” signs. This is a good indication that the agent has the area’s pulse and knows how to properly price a home. They will also likely be aware of any problems, such as sewage backups, termites or vandalism; things that may only be known by locals. Also check the website of agents you may interview. Do they offer tips and explain what services they provide? Do they offer information about the neighborhood including parks, religious institutions, demographics and schools?
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4. What to look for in an agent

When interviewing agents, ask for testimonials from satisfied clients. Look for words such as ‘careful’, ‘followed up’ and ‘protected my interests’. Best way realtor should be just like your guide to the investment plan.

5. Visit the neighborhood on foot

Take a walk through the neighborhood and talk to people. Drive by at 7:30 in the morning to see how many school buses are picking up children. You can also tell how long it may take you to commute to work during rush hour. By speaking to people, you can not only get a sense of the friendliness of the community, but also as to whether there are any surprises that no one is going to advertise, a local haunted house or former grow op, or the neighbor from hell.
and think : if you really like to live in this neighborhood? If yes or if no- why?

6. Go to City Hall

Visit your local building department and find out if any new developments are planned. New development may increase property values but also increase traffic. Check to see how many owners have applied for minor variances, to either build homes or additions that are larger than the by-law permits. This gives an indication of the future direction of this neighborhood.

7. How much can you afford

When it comes to mortgages, it is not enough to know in advance how much you can safely borrow based on your income. Buyers should also realize that the lender will do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan that you expect. So, be very careful about stretching yourself to the limit when you make an offer on any home. Or apply for pre approval and know your options at www.torontomortgagetrends.com

8. Title insurance is a must

Title insurance can be arranged through your lawyer. You will be protected against unpaid taxes or water bills by the seller, as well as problems that are not known at closing. This includes problems where part of the home or swimming pool is in fact on your neighbour’s property. However, it is a mistake to believe that title insurance will protect you against everything. For example, title insurance will not compensate you if you thought your lot was 50 feet and a later survey showed that it was only 48 feet.

9. Why a survey is important

A survey will reveal all boundary issues in advance, which will ensure that you do not have problems after closing, especially if you plan on making additions or other improvements.

10. Choose a home inspector carefully

The home inspection is a critical part of the process, so do your research. Make sure the company is registered before retaining them. The Ontario Association of Home Inspectors is a self-regulating body that defines qualifications for home inspectors, and grants the designation RHI, or Registered Home Inspector, to qualified practitioners in Ontario. Most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. It is better for you if the company does not have this type of clause.

If you’re thinking of renting the basement as a separate apartment ask the inspector if it meets proper fire code standards and if not, an estimate of what it would cost to make it comply. The inspector should also be able to give you advice on what upgrades you’ll need to cut insurance costs. For example, knob and tube wiring or asbestos insulation could cause your insurance premium to double or more.

If you follow these simple steps and buy with your head instead of your heart, chances are you’ll get the house you want at a price you can afford.

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