The HST and Real Estate

It's been more than a year since Ontario adopted the HST and I still get questions about how the HST applies to real estate sales.  As a little refresher I thought I would update an old post from one of my blogs back in 2010.

First, let me say that house prices have not increased by 13% as a result of the new HST.Residential resales were exempt. So unless there is a commercial component to the property in question you don't have to worry, but check with your Realtor or Accountant about the property in question because there are a few areas that are a little tricky.

We held a seminar at the Petawawa Public Library last year to educate consumers on how the introduction of the HST tax system would affect their next real estate transaction. After speaking with a few people who came out to learn all about the changes, which come into effect on July 1st, 2010, I soon realized that there were quite a few misconceptions on the topic. Here are a few points we covered in our seminar:

Ontario HST Explained

Buyers

• Services for Lawyers - Previously 5% GST will increase to 13% HST
• Services for Home Inspectors - Previously 5% GST will increase to 13% HST
• The HST will apply to the purchase of new homes. Purchasers will be allowed to claim a rebate on a portion of the provincial the tax for new homes priced up to $500,000. For homes purchased as primary residences under $400,000 the rebate will be six percent of the purchase price (or 75 percent of the provincial portion of the tax)

Sellers

• Real Estate Commissions - Previously 5% GST will increase to 13% HST
• Services for Lawyers - Same as for buyers, now 13%

Obviously, this isn't a comprehensive list, but it should give you an idea about the kinds of things that are affected. I hope you found it helpful but feel free to contact me directly if you have any specific questions.

Neighbourhood Profile - Petawawa's Pine Meadows

With home prices steadily on the rise in the Petawawa area, finding a nice affordable home is becoming increasingly difficult.  With that in mind, I wanted to kick off my series of posts focusing on Petawawa neighbourhoods with what I feel is a neighbourhood that still offers good value to home buyers.

Pine Meadows is a centrally located Petawawa neighbourhood with approximately 100 properties in its community. It is within walking distance of parks, schools and shopping, and features mostly 3 - 4 bedroom bungalows in the sub-$200k price range.  You'll find plenty of slab-on-grade construction, meaning you won't have a basement, however if the thought of one-level living space is appealing to you, that shouldn't be an issue.

Just a stone's throw from the Petawawa Terrace Provincial Park makes it a nice neighborhood for the nature enthusiast and its proximity the one of Petawawa newest subdivisions and planned retail developments should bode well for the future of this affordable neighbourhood.  As a bonus, the lots are well above average size when compared to newer subdivisions with many in excess of 100 ft wide and 175 ft deep.

View Petawawa Neighborhoods in a larger map

Style: Mostly bungalow
Type: Mostly Single-family detached
Year Built Range (approx): 1960's - 1970's
Postal Code: K8H 2L1
Location: Petawawa East
Nearby Streets: Silke Drive, Michael Crescent, Peter Street, William Street, Charles Street.
Price Range (approx): $170,000 - $200,000
Good for: First-time buyers, retirees, young families

How to Get Your Home in Tip Top Showing Shape

Selling your Petawawa home, even during posting season may not be as simple at putting up a sign, putting an ad in the paper and praying it will sell. A little extra effort to impress your buyers can go a long way and “staging” a home for sale can mean cash in your hand.

Unfortunately not all of us have the cash on hand, or the time and energy, to do things that are really going to flip your home over to the next buyer quickly so here are some quick and easy ways to make your Petawawa home show like a model home for under $200. These are easy-to-do tips and the type of things an interior decorator would advise you to do to help “stage" a property so it is more attractive to buyers.

1. Clear All Clutter
You can get rid of all of the junk in your home for free. Simply get rid of anything you don’t need and haul it away in your car to the nearest dump or Goodwill. This means getting rid of “stuff” in the front yard, back yard, hallway and basement. Studies have shown that people perceive clutter as being indicative of a property that is decrepit or not worth much money.

2. Get Rid of Evidence of Pets
If you have a dog or cat send them away for the day. Hide the litter box and any evidence of it’s aroma. Make sure there are no dog feces in the front yard. This type of thing, along with its smells can convince a buyer that there are allergens, mites and pet urea in the house. Houses with more pets are also considered to be less desirable than ones with no pets at all.

3. Remove Kids’ Stuff
Get rid of strollers on the porch, inflatable kiddy pools in the back yard and any toys that may be lying around in the hallway. Get rid of baby gates and make sure there are no handprints or crayon drawings on the wall. Studies have also shown that homes that have kid’s stuff strewn about are considered to be less hygienic or valuable than those that don’t.

4. Clean Up the Front Yard and Porches
The front yard and porch are very important as that is what your buyer will first see when they approach the home. Make sure that the grass is cut and that the garden is nicely tended.  It also does not hurt to spruce up the front door with a coat of paint and replace the house number plates and the door knocker with new versions.  It also helps a lot to get rid of dead trees or bushes that may be on the property.

5. Get Rid of Sunken Paving Stones
The path to your front door and the driveway are also very important. Sunken paving stones or missing rocks make your home look ratty and cheap. It is quite easy to buy new stones, level them and redo these pathways. Curved path ways look more contemporary than ones that are at right angles.

6. Paint Rooms That Need It
If you have a wall that looks scratched up, beaten or damaged you are well advised to paint it. This can go a long way towards making a home look less shabby. You should also make an attempt to plaster any holes or crumbled parts of walls in your home as well. If paint is out of the question then you certainly could make a better impression by covering up flawed walls with wall paper.

7. Replace Some Fixtures
If your chandelier or light fixtures look dated, then go to some trouble to replace them. You can also make a home look more contemporary and like it is worth more money simply by making a few cosmetic changes like changing the light switch plates or electrical plates to designer versions.

8. Change the Faucets and Spouts
Sometimes you can make a kitchen or bathroom look really refreshed simply by changing out your old faucets and spouts for new ones. Many of these fixtures cost less than $200 and it can be quite easy to install these fixtures all by yourself.

9. Provide Flowers and Greenery
If you have cleared all the clutter, then you should have a home that looks more simple and kind of Zen in nature. One way to augment this air of designer sophistication is to put flowers or vases of tall grasses in every room.

10. Provide Some Aromatherapy
It’s been proven that if an item for sale makes some kind of impression on the nose then people are also more likely to buy it.  One of the tricks that professional real estate agents use is to simply bake some cookies in the oven so the scent of cinnamon and vanilla fills the air as potential customers walk in the front door. This gives a place a more homey effect.

With an eye for design and just a few hundred bucks you can usually fix up your home so that it is more appealing to buyers all by yourself.  Remember, there's lots of competition in Petawawa this time of year so make sure your home stands out among all the other Petawawa real estate that's hitting the market.  Good luck!

Planning a Successful House Hunting Trip

Since moving to Petawawa in 2009, I've had the opportunity to work with quite a few military members who have been posted (relocated) here from other military towns across the country.  If you're reading this post and have never experienced a military relocation and it's House Hunting Trip (HHT), I would equate it to extreme house hunting.  We're talking travelling hundreds, or thousands, of miles with 7 days to learn the neighborhoods, decide where you want to live, find a house, make an offer, agree to terms, schedule and attend your inspection, and work out any kinks before you return home with (hopefully) a firm contract on your new house.

If there's one piece of advice I can offer a military member on their HHT, it would be have a plan!  I mean really plan as much of your trip as possible before even arriving in Petawawa.  Here are a few tips that might help make your HHT less stressful, run smoother and ensure you actually accomplish the your goal of finding a house:

Before leaving for your 7-day HHT

1. Start looking for an agent who has experience with military relocations, who you feel comfortable working with, and is willing and able to dedicate the necessary time to helping you while you're here.
2. Make sure they have a clear understanding of your housing needs.  Send them a list of "must haves" and a list of "like to haves".
3. Get set up on the agent's email notification system so you can start screening potential listings.  The goal here is not to find you a home via email, but to help your agent get a good feel for your likes and dislikes, and to give you a better understanding of the local market.  Regular communication here is key!
4. A few days before you're due to arrive, sent your agent a list of 5-10 of the homes the seem to best match your criteria.  This will basically be your showings for day one.
5. Gather up contact information for your IRP rep, your mortgage agent and the hotel where you'll be staying and let you agent know so he can start preparing a file.

It's been my experience that if you do these things ahead of time your REALTOR® will be able to coordinate the rest of your HHT more efficiently and better ensure your chances of success.  I've shown as many as 30 houses in 2 days, and as few as 5.  If you can narrow down your top 3 choices by the end of day 2 and schedule second showings of those homes by the morning of day 3, you should be able to pull this thing off with relative ease.  All agents work differently and of course no two clients are ever alike, but I've had good success with this in the past.  Good luck with your relocation!

Why Blog About Petawawa Living?

I've been living in Petawawa for almost two years now and been selling real estate here for about a year and a half.  I remember when we first relocated here from Newfoundland - packed up everything we owned an moved almost halfway across the country.  It wasn't an easy decision - albeit a quick one, but certainly not taken lightly.  At the time our family was all back East and we barely even heard of Petawawa, let alone thought about moving here.

I mean we barely even heard of it.  So off we went combing website after website looking for everything we could possibly find out about "Petawawa Living".  Plenty of questions - What's to do in Petawawa? Where do we live?  What amenities does it have to offer?  What's the cost of living?  How are the schools?  And many more.  Answers we certainly available, however find them was tedious and time-consuming.  My hope is that over time this blog will become a go-to place for anyone moving to Petawawa.  A place to research neighborhoods, schools, local businesses and Petawawa real estate information.  It will also be a place to share my own experiences with what the area has to offer.  In case you ever wonder "what's to do in Petawawa?" you may want to check back here in occasion.

So stay tuned, I hope you'll drop in from time to time.  And feel free to leave a comment or ask me a question.