There are many ways to find and choose a real estate professional to work with when buying or selling a home. Plenty of people receive referrals from family or friends who’ve worked with a professional in the past. Many others choose names from For Sale signs in neighbourhoods they like. However, these days it’s also not uncommon for home buyers and sellers to find a real estate professional using one of the many social networks that Canadians participate in. The massive popularity of networks such as Facebook, Twitter and LinkedIn has led many real estate professionals to use these sites to build their own brand and reputation, connect with new clients, maintain relationships and provide real estate advice and analysis.
   On Facebook, for example, a real estate professional might build a page for their business that includes a regular blog, updates about their current listings, and information about the services they provide to buyers and sellers. They may advertise their page using Facebook’s ads, which are keyed to the networks that users belong to. So for example, if you belong to the Ottawa network you would only see ads from real estate professionals who work in this area.
   The Ottawa Real Estate Board now has its own Facebook Page (search for OREB) where we promote our members, link to articles of interest about the Ottawa real estate market, and provide information that may be useful to the buying and selling public. LinkedIn is another social media site that many real estate professionals use to build their business contacts. LinkedIn users can build a network of colleagues and contacts tailored to their interests and the industry they work in. Users can search their network, which is composed of their own connections as well as each of their connections’ connections (if that makes sense) - for search terms such as real estate professional or real estate agent. Users can also endorse other users so if you’re searching for someone to help you buy or sell a home, you can see if any real estate professionals in your network have been recommended by people you know and trust. It’s
like taking word of mouth and moving it online.
   In addition to Facebook and LinkedIn, many real estate professionals also use Twitter for shorter, more time-sensitive messages. If you’re interested in homes in a particular neighbourhood, you can search Twitter to see if there are real estate professionals who work mainly in that area and follow their Twitter feed to find out about new listings, open houses and other neighbourhood updates. Many real estate professionals have also embraced blogging (sometimes as part of their Facebook page, sometimes on their own website). They provide readers with regular updates about what’s happening in their market, offer advice for buyers and sellers, highlight hot new listings, and offer insight into how they do business.
No matter how you connect with him or her, whether it’s online via social media or through your best friend’s sister’s uncle’s recommendation, a member of the Ottawa Real Estate Board can help you meet your real estate goals, whatever they may be. Come visit us on Facebook, follow our Twitter feed(_OREB_) or visit us at www.OttawaRealEstate.org.

On July 1, 2010, the HST replaced the current Goods and Services Tax (GST) and Provincial Sales Tax (PST) in Ontario. By now you’ve no doubt heard the advertisements from the Government of Ontario on the radio, talking about what will and will not be affected by the upcoming tax changes. The ads mention things like groceries, baby clothes, and car insurance. But what about the really big stuff, like buying a home?

The short answer is that HST applies only to items which are currently subject to GST. Newly built homes and substantially renovated homes currently have GST added to the purchase price. However, resale homes were exempt from GST, and remain exempt from HST. So if you’re hoping to purchase a home this year, you should know that the new Harmonized Sales Tax (HST) is, generally speaking, not applicable to the purchase price of resale homes.

There may be a few exceptions to this general rule; for example, if the home being purchased was first bought by a corporation and therefore GST/HST was never paid on it; or if the home has been substantially renovated from its original structure, it is subject to HST. The Canada Revenue Agency defines substantially renovated as follows: “Major changes have to be made to meet the definition of a substantial renovation. In a major renovation project, the interior of a building is essentially gutted. This type of renovation project qualifies as a substantial renovation. Generally, 90% or more of the interior of an existing house is the minimum that has to be removed or replaced to qualify as a substantial renovation.”

So, for example, if a homeowner has renovated the kitchen and bathrooms but the remaining rooms have no structural modifications, the home is probably not going to qualify as “substantially renovated” and thus no HST is applicable upon the sale of the home. To be absolutely certain, before you buy, check with your accountant, lawyer or tax professional to make certain that the specific home you wish to purchase is not subject to HST.

The new HST is payable on certain services associated with the purchase of a home, such as legal fees, real estate commissions, moving fees, appraisals, and home renovation services, because all of these were subject to GST. Household purchases such as furniture, barbeques, lawn mowers, building materials and landscaping materials are unaffected by the change in any way but the name of the tax, as they were already subject to both GST and PST.

For more detailed information about what is and is not taxable under the new HST legislation, I encourage you to visit http://www.rev.gov.on.ca/en/taxchange/taxable.html.

The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the July 14th, 2010, issue of the EMC community newspapers.

Whether you’re trying to purchase a home or rent one, there are many places where properties
are advertised these days, including a ton of websites that offer free or inexpensive classified ads.
Unfortunately, some of the property advertisements out there are frauds designed to separate you
from your money without actually offering property for sale or rent.

It’s far too easy to mock up a fake ad by copying and pasting the text and photos from another
website where the property is legitimately listed for sale or rent. These ads can be very
convincing to those looking for a new place to live. However, there are some red flags that
consumers can watch out for:

• Asking for a deposit or rent money for a property for sale or rent without any opportunity
to view the property, inside and out. This is a common scam on some advertising
websites, where those interested in renting a house might be asked to wire first and last
month’s rent to the “owner” or “landlord” without being allowed to visit the property, for
some spurious reason – the owner is out of the country or doing missionary work, the
house is being renovated, and so on.

• Offering to mail the keys in exchange for a deposit, or asking for personal information
such as a bank account number, driver’s license or social insurance number. Even if you
don’t end up sending the scammer any cash, they may be able to use that information to
empty your bank account or set up credit cards in your name.

• The price is well below what similar properties are asking. If it seems too good to be true,
it probably is. The low prices are how scammers suck people in.

The most important common denominator is that in a scam situation, generally the prospective
tenants or owners will never see the property in person until they show up to claim it – and find
the rightful tenant or owner already living there, oblivious to the existence of the scam. It’s a
horrible situation for all involved.

If you need to buy or rent a property somewhere you are unable to visit before doing so, consider
working with a real estate professional or reputable property management company. The national
website of the Canadian Real Estate Association, REALTOR.ca, lists homes for sale and for rent
across the country, with easy contact information for the real estate professional who has listed
each property. This information is sent to the website by local real estate boards that have strict
rules and regulations in place for members who post property listings, so they are reliable and
accurate.

There are also many local and national property management companies that rent homes and
apartments, and are happy to work with out-of-town clients. Or ask for a recommendation from
friends, clients, a new boss or workplace HR department, even a school principal or clergy
person. Everyone has had to find a place to live at some point, and a referral from a respected
member of the community may be more reliable than a free internet advertisement. Doing your
homework and making sure the deal is real can save you a huge amount of hassle later on.

The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the June 23, 2010 issue of the EMC community newspapers.

RE/MAX Brokerages Rank Highest in Canada (Denver, CO - May 10, 2010) In the first annual survey of Canadian real estate brokerages conducted by REAL Trends, two thirds of the nation’s top performing brokerages were affiliated with RE/MAX.

 "We are extremely proud of our Canadian brokers and agents for their tremendous efforts," said William Soteroff, Senior Vice President of International Development at RE/MAX, LLC. "Our Canadian affiliates have always been respected members of our organization, and we’re very pleased that they represent RE/MAX so well and are such outstanding performers in their marketplace."

In addition to the number of RE/MAX brokerages ranked in the survey, RE/MAX Sales Associates were top individual performers, as well. The average RE/MAX Associate closed 17.9 transaction sides and RE/MAX was one of just two companies that ranked above the 14.5 average of all survey participants.

Recently, a consumer survey conducted by Reader’s Digest Canada found that RE/MAX was the Most Trusted Brand in the category of residential real estate.

"Of course, we’re excited to earn such great performance numbers, but we’re especially honored to earn the consumer’s trust. That’s what RE/MAX quality service is all about," said Soteroff.

RE/MAX first began franchise operations in Canada in 1977 and now has over 17,000 Sales

Associates working in more than 700 offices. RE/MAX enjoys over a 30% market-share in most major Canadian markets.

Survey of Canadian Real Estate Brokerages Reveals Top Performers

From the Canadian Press

Date: Thursday May. 3, 2007 8:26 AM ET

www.OttawaRealEstate.org

196,347 members of the public visited the OREB Internet Site during the month of February 2010 compared to 174,408 in February 2009.

                                                                     Feb 2010                                   Feb 2009

April 7th, 2010

Members of the Ottawa Real Estate Board sold 1,499 residential properties in March through the Board’s Multiple Listing Service® system compared with 1,161 in March 2009, an increase of 29.1 per cent.

Of those sales, 327 were in the condominium property class, while 1,172 were in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.) which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

“The spring market kicked off early and strong this year, possibly boosted by the unseasonably warm weather and absence of snow in March,” said Board President Pierre de Varennes. “Inventory is still lower than at this time in 2009, but has begun to increase slightly in recent months,” he added.

The average sale price of residential properties, including condominiums, sold in March in the Ottawa area was $329,767, an increase of 15 per cent over March 2009. The average sale price for a condominium-class property was $240,409, an increase of 15.1 per cent over March 2009. The average sale price of a residential-class property was $354,698, an increase of 15.1 per cent over March 2009. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of 2,540 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association and thus are entitled to use the term REALTOR®.

The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to effect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca. Information about listings and open houses is also available in the Board’s weekly newspaper, Ottawa Real Estate Guide, available free at 700 locations across the Ottawa area and now online at www.OttawaRealEstateGuide.ca.

Mortgage rates have finally begun to rise from their record lows, with news Monday that Royal Bank and TD Canada Trust are increasing several fixed mortgage rates by up to 6/10ths of a percentage point.

The biggest jump is attached to the popular five-year fixed closed rate, which moves from 5.25 per cent to 5.85 per cent at both banks. That's the posted rate, which is routinely discounted by the big banks.

RBC's new discounted rate for the five-year term also rises 6/10ths of a percentage point to 4.59 per cent. TD's rises the same amount to 4.55 per cent.

The posted four-year rate at both banks jumps 4/10ths of a percentage point to 5.34 per cent.

Other banks are expected to follow suit. The new rates, effective Tuesday, represent the first hike in Canadian mortgage rates since last October. The posted five-year rate is now back to where it was for much of last summer.

New mortgage rules that go into effect next month require borrowers to qualify at the five-year rate, rather than the old three-year standard, even if they are applying for a variable rate mortgage.

Variable rates expected to rise soon

Variable mortgage rates, which rise in tandem with the Bank of Canada's key overnight lending rate, are not affected by Monday's announcement. But they are likely to be heading up soon too.

Bank of Canada governor Mark Carney warned last week that inflation was higher than expected. That had some market watchers forecasting that the central bank could move to raise its key lending rate as early as June. The possibility of an earlier rate hike sent bond yields up, and that appears to have prompted Monday's mortgage increase. Fixed mortgage rates tend to move higher when long-term bond yields rise.

The key rate has been at a rock-bottom 0.25 per cent since April 2009 to help the economy recover.

A report out Monday from CIBC World Markets said rising rates shouldn't be enough to derail the stock market rally — pointing out that the market is historically strong six months before and after rate increases.

A survey released last week by RBC found almost two-thirds of respondents expected the cost of servicing a mortgage to rise this year.

**Courtesy of CBC.ca News, posted March 29th, 2010**

http://www.cbc.ca/canada/ottawa/story/2010/03/29/mortgage-rates-up.html?ref=rss

What do nearly all home buyers in Canada have in common? Most of them need a mortgage in order to purchase their home. So it’s important for buyers to be aware that a few weeks ago, the federal Finance Minister, Jim Flaherty, announced changes to the rules governing mortgage lending in Canada. These changes had been expected since Flaherty made a vague reference to them in a post-Christmas television interview, but they did not include further tightening of the allowed amortization period (which in 2008 was reduced from 40 years to 35 years), nor did Flaherty increase the minimum down payment percentage that borrowers need to pay. That minimum currently stands at five per cent of the home’s purchase price.

However, what the rule changes do require are the following:

• Borrowers will need to have the resources to qualify for a five-year fixed-rate mortgage even if they decide on a lower-cost variable rate mortgage.

• The maximum amount that can be withdrawn when borrowers refinance their mortgages (and draw out additional equity) will be 90 percent of the value of the home, down from 95 percent.

• A minimum down payment of 20 percent will be required for insured mortgages tied to properties purchased as speculative housing investments not occupied by the owner.

These new rules come into force on April 19. The government says it has made these adjustments to its mortgage rules in an attempt to prevent a U.S.-style “housing bubble” in Canada.

What do the changes mean for home buyers? The first rule will have the most impact on those hoping to enter the housing market. Asking all buyers to qualify for a five-year fixed-rate mortgage is intended to ensure that, if rates do increase during the term of a variable-rate mortgage, borrowers won’t have trouble making their payments at the new, higher interest rates.

That means that lenders will be looking more closely at borrowers’ debt-service ratio. Lenders want to see that the sum of all of a borrower’s loan payments (car, personal loans, monthly credit card balances etc.) and their mortgage payment (including principal, interest and taxes) do not exceed 42 to 44 per cent of their gross (pre-tax) income, and that the combined mortgage payment and taxes does not exceed more than about 30 per cent of their gross income.

The second rule change will affect those who already own a home and wish to refinance it to use some of the equity they have built up. The lowered limit is intended to keep homeowners from owing more to their lender than their home is worth.

The third rule, for mortgages on homes that the buyer does not plan to occupy, requires that they put down at least 20 per cent of the purchase price in order to qualify for mortgage insurance. This rule change is aimed at limiting speculation on housing properties.

If you’ll be looking for a new mortgage or refinancing an old one in the coming months, keep these changes in mind. Your real estate professional or mortgage lender can help you calculate your debt-service ratio to determine how much you might qualify for.

The President's Pen column was prepared by the Ottawa Real Estate Board and first appeared in the March 24th, 2010 issue of the EMC community newspapers.