Ever wonder why your favorite movie stars look so beautiful?You might also wonder why the coffee shop you frequent is always clean and well-decorated for each season.They have a team that is meticulously focused on every detail.
Think about the many professionals who are there to help you find your dream home.You have more than your Real Estate Agent. There are many people who can help you find the right home for you, including a Real Estate lawyer.
Role of a real estate lawyer as a buyer
Check out the Agreement of Purchase as well as all other legal documents
Verify that there aren’t any claims against the property
How to reduce taxes on the sale of Canadian real estate
In this article, we’ll cover everything you need to know about reducing taxes on the sale of real estate in Canada.
1. Capital gains treatment.
First, you can reduce taxes by calling the capital gain from the sale of Canadian real property a capital gain. Capital gains mean that only half the profits from your Canadian real-estate sale will be taxable to you.
Let’s say that a real property sale profit is $100,000. This means that only $50,000, or half of the gain, would be taxable at your marginal tax rate. This formula calculates the profit from real estate sales in Canada. Net sales minus cost equals profit or loss. The selling price is the net sales proceeds, while the cost is the original purchase. The original purchase price must be included on the purchase and sales agreement when you purchased the property. The property’s cost can include closing costs and land transfer tax legal fees for tax purposes. To arrive at net sales proceeds, you can also deduct commissions and selling costs.
2. Maximize capital improvements
Maximize capital expenditures in order to maximize capital improvements and lower property sale taxes. Also known as improvements, capital expenditures are also called capital expenditures. A lower price will result in a lower profit when you sell your property.
Let’s say you decide to replace all your windows. Window replacements can be expected to last between 10-20 years. This will increase the property’s tax-free life expectancy. These windows can be considered capital improvements and added to your property’s cost. Because repairs are not considered improvements, they won’t increase your property’s value for tax purposes.
Repairs are deductable as a current expense in your Canadian tax return. Repairs include painting, fixing leaky faucets, shampooing carpets and fixing holes.
3. Do not claim capital cost allowance.
You must consider depreciation and capital cost allowance when selling a Canadian property. Tax-deductible depreciation is the cost of physical wear and tear on your property. When you sell depreciable assets, such as Canadian real property, the capital cost allowance that you claimed in previous taxation years must be included within your taxable income for the year of sale. This is called recapture.
Let’s take, for example, $100,000 in capital cost allowance that you have claimed to date. This means that $100,000 of capital cost allowance you have previously claimed will be added to your taxable income for the year of sale. You will not be able to claim the capital cost allowance if you don’t. You should calculate the capital gain from your real estate sales. Maximize capital improvements and include capital cost allowance.
We are working real estate lawyers specialize in helping people with a variety of options when it comes to protecting their investments from capital gains tax. So let us show you our experts expertise by taking a look at your situation and advising on strategies that work for your needs.
TORONTO — There was no relief for Greater Toronto Area homebuyers last month as the average home price increased up to nearly 28 per cent when compared with last year as a lack of supply continued to hamper the market.
The Toronto Regional Real Estate board said Thursday the average selling price for a home in the region surpassed $1.3 million last month, up from just above $1 million last February and more than $1.2 million in January of this year.
The average price of a detached home hit more than $1.7 million last month, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000.
The Ontario board laid much of the blame for the soaring prices on demand greatly outpacing supply and thus, fueling a market where bidding wars, few sellers and a frenzied atmosphere have been the norm.
“I’ve had clients break down and cry for me because when they lose out on a bid, they’re just so frustrated,” said Despina Zanganas, a Toronto realtor with PSR Brokerage. “They put in what they think is really reasonable and it goes for like $100,000 more than they would have expected.”
Condo prices, she said, have been “crazy crazy crazy” in recent months because people are realizing that houses are increasingly expensive, so they are shifting to the most affordable homes “just to get their foot in the door.”
Many sellers also have high expectations. They’re listing homes at elevated prices and if they don’t get the amount they want, she has seen them relist again for a higher amount, driving more anxiety to buyers.
But over the last week, Zanganas has noticed a slight easing in the market and some homes she has kept tabs on have received far fewer showings than she would have predicted.
The board made similar observation after it detected in February that the region is making a “modest move” toward a “slightly more balanced” market.
Those traces of an easing came in the form of new listings, which are still down from a year ago, but by a marginally lesser annual rate than sales.
New listings for the month totalled 14,147, an almost seven per cent drop from 15,146 last February.
“People are just holding onto their houses because there’s no inventory,” Zanganas said.
“If you sell, how are you going to buy? And it’s probably not going to be a step up.”
Meanwhile, 9,097 homes changed hands last month compared with 10,929 last February and 5,622 in January of this year.
That means February home sales were down compared with the all-time record set in 2021, but still eked out the second highest sales rate for the month.
TRREB had forecast sales would be lower this year because many people rushed to purchase homes last year or in the early weeks of 2022 in a bid to get ahead of looming interest rate hikes.
On Wednesday, the Bank of Canada hiked its benchmark interest rate to 0.5 per cent from 0.25, where it has sat for the last two years of the COVID-19 pandemic and served as an incentive to cash-strapped buyers.
TRREB believes the rate hike will have a “moderating effect” on home sales, but will be countered by substantial immigration levels and a continued lack of supply.
It does not see home prices abating in the near-term.
“Because inventory remains exceptionally low, it will take some time for the pace of price growth to slow,” Jason Mercer, the board’s chief market analyst, said in a news release.
“Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily as they resituate themselves in the market.”
This report by The Canadian Press was first published March 3, 2022.
Mississauga is Canada’s one of the largest cities. It has become a vibrant economic and cultural hub, and It offers a variety of living experiences through its increasing stock of condos and homes.
About Mississauga
Mississauga is surrounded by beautiful Lake Ontario shorelines, home to many waterfront condos and homes. The old village of Port Credit was transformed into a pedestrian-friendly shopping district. The Square One Shopping Centre is located further north on Hurontario Street, the city’s main thoroughfare. It also houses a large number of corporate headquarters. A string of communities along the Credit River to the west provide a family-friendly, lush living environment. In the city’s northwest corner is the former village of Streetsville. There are also several shopping centers and recreational areas scattered throughout the community.
Mississauga Transportation
MiWay is the city’s transit agency and offers a wide range of bus routes. Many use the Mississauga Transitway, which provides increased frequency and reliability. The Transitway runs approximately from Pearson Airport to Winston Churchill Boulevard via Square One. It is served by both GO Transit or MiWay routes. GO offers rail service to the area. The Lakeshore West runs parallel to Lake Ontario and offers high-quality service seven days per week. The Milton Line runs through the city’s centre and western reaches and offers ten round trips on weekdays. As well, the opening of the Hurontario LRT in 2024 provides transit access for those commuting from north to south in Mississauga. There are four major highways – Highway 401, Highway 403, Highway 407 and Highway 410 – all crossing through the Mississauga city.
If you’re looking to buy your first home, but don’t have the money to get into the market right now, it may be worth your while to look into Mississauga’s many pre-construction condo developments. With the right pre-construction condo, you can get into the market early, take advantage of great savings on your monthly mortgage payment, and build equity as the building itself rises around you. Here are some things to keep in mind if you’re considering getting into the Mississauga pre-construction condo market.
1. Lakeview DXE Club Condos
Developer: Vandyk Properties Address: 1345 Lakeshore Rd E, Mississauga Nearest Intersection: Lakeshore Rd E & Dixie Rd Pricing: TBA Occupancy: TBA Storeys / Suites: 2 Towers – 8 & 12 Storeys / TBA Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: TBA Maintenance Fees: TBA Deposit Structure: TBA Incentives*: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Property Management & Leasing Services Available, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements
2. The Vic Condos
Introducing The Vic Condos, the newest mid-rise condominiums coming soon to your town. You’ll find everything you need around here in beautiful Downtown Streetsville; with great food, shops and sights all just a few minutes away by car or bus. And when it comes time for higher education – Its right next door to the University of Toronto – Mississauga Campus!
Developer: Forest Green Homes Address: Tannery St & Queen St S, Mississauga Pricing: TBA Occupancy: TBA Storeys / Suites: 4 Storeys / TBA Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: TBA Maintenance Fees: TBA Deposit Structure: TBA Incentives*: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Free Leasing & Property Management Services, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements Suite Finishes: Laminate Flooring, Stone Kitchen Countertops, Stainless Steel Kitchen Appliances and more Building Amenities: TBA
3. Eleven 11 Clarkson Towns
Eleven 11 Clarkson Towns new townhomes are coming to Clarkson Village in Mississauga, Ontario. These homes will be right next door to the shops and restaurants of Lakeshore, making it easy for residents to do everything they need without having to leave home!
Developer: Saxon Developments Address: 1111 Clarkson Rd N, Mississauga Nearest Intersection: Clarkson Rd N & Lakeshore Rd W
Pricing: Starting From The Mid $500s
Occupancy: December 2020 Suite Types: One Bedroom – Three Bedroom Suites Suite Sizes: 690 sq ft – 1,687 sq ft Maintenance Fees: Approx. $0.30 / sq ft Deposit Structure: $10,000 on Signing // 5% Minus $5,000 in 30 Days // 5% in 180 Days // 5% in 300 Days // 5% on Occupancy Incentives: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies ($5,000 for 1 Bed // $7,500 for 2 Bed // $10,000 for 3 Bed), Free Assignment (Value of $10,000), Property Management & Leasing Services Available, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements
4. 91 Eglinton Ave East Condos
Introducing a new condo community in the heart of Mississauga- at 91 Eglinton Ave East! Nestled between Hurontario St. and Eglinton Ave., you will never want to leave this condominium townhome block which features 6 towers and 2 buildings all within walking distance from everything that Mississauga has to offer. From major highways, shops and schools- it’s all right around the corner for you at 91 Eglinton Ave East.
Developer: Liberty Developments Address: 91 Eglinton Avenue East, Mississauga Nearest Intersection: Eglinton Ave E & Hurontario St Pricing: Anticipated To Start From The High $400’s
Occupancy: Anticipated For 2024 Storeys / Suites: Six Towers – 13, 19, 24, 25, 35, & 37 Storeys / Suites TBA Suite Types: One Bedroom – Three Bedroom Suites + 3-Storey Townhomes Suite Sizes: TBA Deposit Structure: TBA Incentives: Platinum VIP Pricing & Floor Plans, First Access to the Best Availability, Capped Development Levies, Assignment, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements, Exclusive 1 Year Free Leasing Services & 1 Year Free Professional Property Management Services*
5. Kindred Condos
Introducing your next home- a beautiful new condo in Mississauga perfect for anyone who wants to be closer to everything. With Westwood Mall just around the corner, major highways and universities nearby, as well as being situated near other essential amenities; this is a great option for those looking for convenience.
Developer: The Daniels Corporation Address: 2475 Eglinton Ave W, Mississauga Nearest Intersection: Eglinton Ave W & Erin Mills Pkwy Pricing: Starting From $485,900 Occupancy: February 2025 Storeys/Suites: 25-Storeys / TBA Suite Types: Studio – Two Bedroom + Den Suites Suite Sizes: 433 sq ft – 953 sq ft Maintenance Fees: $0.59/sq ft (Includes Bell Gigabit Fibe 1.5 Internet // Water & Hydro Separately Metered) Deposit Structure: $7,000 on Signing // 5% Minus $7,000 in 30 Days // 1% in 90 Days // 1% in 120 Days // 1% in 150 Days // 1% in 180 Days // 1% in 210 Days // 5% in 400 Days // 5% on Occupancy Incentives*: VIP Pricing & First Access to the Best Availability, Capped Development Levies, Free Assignment, Free Lawyer Review of Your Purchase Agreement, Free Mortgage Arrangements, One Parking Unit ($55,000 Value) + One Locker Unit ($3,000 Value for a half-height locker or $5,000 Value for a full-height locker) Available for ONLY $45,800!*, Capped Closing Costs (All One Bedroom + Den & Smaller – $10,000 + HST // All Two Bedroom & Larger – $12,500 + HST) Suite Finishes: Laminate Flooring, Stone Kitchen Countertops, Stainless Steel Kitchen Appliances, Stacked Washer & Dryer Building Amenities: 24/7 Concierge, Private Roundabout Driveway Entrance, Pet Wash, Co-Working Space, Bookable Boardroom, State-of-the-Art Fitness Centre, Yoga Studio, Party Room, Outdoor Playground with Firepit, Games Room, Outdoor Terrace, Gardening Plots
If you’re considering buying an investment property, there are several things to keep in mind before you commit to the purchase. The key to your success with the property will be researching and planning to know what factors will affect the house’s value and how much of your time and money you’ll need to put into it to maintain its value over time. Here are five essential things to consider before investing in a property. If any of these crucial things don’t make sense to you, or if you find them too complicated, be sure to talk with an expert who can help guide you through the process.
1. Risk in Real estate investing.
Real estate investing is a lower-risk option than other investments, such as stocks or cryptocurrencies. To assess the risks involved, it is essential to thoroughly research the property, the area, the appreciation over time, and future plans. You should also consider operating, mortgage, and maintenance costs when investing in property.
2. Your Financial Situation
Before you consider investing in property, It is essential to assess your financial situation. These investments are not cheap, so be prepared to invest substantial money upfront and over time if you have to mortgage. When determining your financial situation, consider your income to debt ratio. This could make a difference in whether you can use your existing funds for the investment or not. Consider how much cash you have available after the acquisition. This can help with closing costs and emergency fund requirements.
3. Property Management
Depending on the type and size of your property, you might need management services to maintain it operational after you have bought it. It is wise to hire a property manager to manage your rental property. They can find tenants, handle legalities, and maintain the property. This will take the burden off your shoulders and allow you to concentrate on other investments and personal ventures.
4. Property location
The “where” is much more important than “what” when investing in property. Property prices heavily depend on the location of the property. The property price in urban areas will always be higher than those in rural and suburban locations. The high cost of living in urban areas will result in higher long-term profits. Because of the ease of access to transportation and social factors, urban lifestyles are often more appealing to the masses. Once you have purchased the property, the property’s location will be determined by who your target audience is. If you plan to rent your property out to families, you might consider buying a property in Brampton and Mississauga, the best places to purchase real estate in Ontario.
5. The One Percent Rule
The real estate’s one percent rule states that the monthly rent should not be less than 1% of the property’s price. Your property rent should cover your monthly mortgage payments. This ensures that you don’t invest your income in the mortgage but rent the property. This is what will make renting a rental property worth the investment.
