Every year, corporates around the world expand or establish their presence in international markets and Canada has entered the rankings for the top destinations for employee relocation.
A report from relocation specialists Cartus reveals that the US has held the top spot from its last survey 4 years’ ago with the UK and Switzerland completing the top 3.
China has slipped in the rankings from third in 2013 to 8th in 2016 while Canada has entered the top 10 at 9; Ireland has entered at 10. France and Hong Kong have dropped out of the top 10.
“It’s interesting that Canada has now joined the list of top ten global relocation destinations. As the year-in-year-out largest trading partner with the United States, and with many companies’ supply chains crossing the border, Canada will continue to be an important destination for US expats,” said Matt Spinolo, Executive Vice President, Global Services, Cartus.
Singapore, Netherlands, Germany and India remain popular destinations for corporate employees.
Source: http://www.canadianrealestatemagazine.ca/market-update/canada-becomes-a-top-destination-for-global-corporate-employees-223644.aspx
Monday, April 3, 2017
Thursday, March 23, 2017
Real estate exec speaks out against increasing capital gains tax
One leader of the real estate industry explains why a potential increase to the capital gains tax on second homes is a bad idea.
Investors have one influential voice in their corner.
“I think it’s a horrible idea. The proposed change would be a huge change in Canadian taxation policy. It would hurt employment. It’s just generally bad for the economy. It flies in the face of the innovation focus of the economy that the prime minister wants to build,” Phil Soper, president or Royal LePage, told Canadian Real Estate Wealth. “It’s bad policy, specifically the rationale the Finance Minister put forward. I don’t think it would help Toronto home prices. The portion of the market that is tied to home flipping or short-term speculators … that’s a very small portion of the market. Of any market in Canada.”
Ontario Finance Minister Charles Sousa is urging the government to crack down on speculative housing investing by increasing taxes on profits.
In a letter to Finance Minister Bill Morneau, Sousa argued hiking the taxable amount above 50% would discourage investors to purchase homes on speculation. It’s one way to address ever-increasing housing prices in the country’s hottest housing market and thus help first-time homebuyers currently priced out of the market break in.
“My primary focus is to address the concerns of middle class Canadians who are worried about buying their first home,'' Sousa wrote in the letter. “Additionally, it is important that the housing market remains stable, meaning that borrowers and lenders are resilient and able to withstand economic shocks.''
Under the current policy, capital gains tax is charged on 50% of home sale profits unless it’s a principal residence.
Starting this year, Canadians have to fill out an extra section on their tax return, the Schedule 3 “Capital Gains (or Losses)” in order to claim their principal residence and earn a tax break. Homeowners will provide information on the date of acquisition, the address, as well as other details for any sold home claimed a principal residence.
Source: http://www.canadianrealestatemagazine.ca/news/real-estate-exec-speaks-out-against-increasing-capital-gains-tax-223175.aspx
Investors have one influential voice in their corner.
“I think it’s a horrible idea. The proposed change would be a huge change in Canadian taxation policy. It would hurt employment. It’s just generally bad for the economy. It flies in the face of the innovation focus of the economy that the prime minister wants to build,” Phil Soper, president or Royal LePage, told Canadian Real Estate Wealth. “It’s bad policy, specifically the rationale the Finance Minister put forward. I don’t think it would help Toronto home prices. The portion of the market that is tied to home flipping or short-term speculators … that’s a very small portion of the market. Of any market in Canada.”
Ontario Finance Minister Charles Sousa is urging the government to crack down on speculative housing investing by increasing taxes on profits.
In a letter to Finance Minister Bill Morneau, Sousa argued hiking the taxable amount above 50% would discourage investors to purchase homes on speculation. It’s one way to address ever-increasing housing prices in the country’s hottest housing market and thus help first-time homebuyers currently priced out of the market break in.
“My primary focus is to address the concerns of middle class Canadians who are worried about buying their first home,'' Sousa wrote in the letter. “Additionally, it is important that the housing market remains stable, meaning that borrowers and lenders are resilient and able to withstand economic shocks.''
Under the current policy, capital gains tax is charged on 50% of home sale profits unless it’s a principal residence.
Starting this year, Canadians have to fill out an extra section on their tax return, the Schedule 3 “Capital Gains (or Losses)” in order to claim their principal residence and earn a tax break. Homeowners will provide information on the date of acquisition, the address, as well as other details for any sold home claimed a principal residence.
Source: http://www.canadianrealestatemagazine.ca/news/real-estate-exec-speaks-out-against-increasing-capital-gains-tax-223175.aspx
Monday, March 20, 2017
Consumer confidence rises on real estate future
More Canadian consumers are expecting a rise in real estate prices in the next 6 months, while overall sentiment in the economy and personal finances is also up.
The weekly Bloomberg/Nanos Canadian Confidence Index was up to 58.22 in the week ending March 10, up from 57.42 a week earlier and setting a new 2017 high.
“Perceptions related to the value of real estate in Canada, which hit a seven month high in the weekly tracking, continue to be one of the top positive drivers of consumer sentiment” said Nanos Research Group Chairman Nik Nanos.
There were increases in positive outlooks for personal finances including mortgages, and the Canadian economy. However, there are still some challenges.
Canadian households are experiencing sluggish wage growth as the economy transitions from a commodity and manufacturing-based economy to one that for now looks to the lower-wage service sector for employment opportunities”, said Bloomberg economist Robert Lawrie.
-http://www.canadianrealestatemagazine.ca/market-update/consumer-confidence-rises-on-real-estate-future-222899.aspx
The weekly Bloomberg/Nanos Canadian Confidence Index was up to 58.22 in the week ending March 10, up from 57.42 a week earlier and setting a new 2017 high.
“Perceptions related to the value of real estate in Canada, which hit a seven month high in the weekly tracking, continue to be one of the top positive drivers of consumer sentiment” said Nanos Research Group Chairman Nik Nanos.
There were increases in positive outlooks for personal finances including mortgages, and the Canadian economy. However, there are still some challenges.
Canadian households are experiencing sluggish wage growth as the economy transitions from a commodity and manufacturing-based economy to one that for now looks to the lower-wage service sector for employment opportunities”, said Bloomberg economist Robert Lawrie.
-http://www.canadianrealestatemagazine.ca/market-update/consumer-confidence-rises-on-real-estate-future-222899.aspx
Thursday, March 16, 2017
Commentary: Paying 20% down payment in full is the wiser choice today
Taking current economic and fiscal realities into account, it would be far more sensible to pay the initial 20 per cent down payment for a home purchase in full instead of saving the money for later, according to a veteran industry analyst.
In a March 10 piece for The Globe and Mail, markets observer Rob Carrick argued that the mortgage environment of today does not favor those who carefully save and spend their hard-earned funds.
“Home buyers who put less than 20 per cent down are seen as risky enough to require that they pay the cost of default insurance for their lender. But the best mortgage rates are in some cases going to people with small down payments,” Carrick wrote.
“The indignities for diligent savers are piling up. You’ll earn next to no interest on your savings, and then some mortgage lenders withhold their best rates when you buy a house.”
Carrick added that the increased popularity of high-ratio mortgages has led to the taxpaying public essentially bankrolling these mortgages in the event of defaults.
“Because they’re basically risk-free, high-ratio mortgages get the lowest rates at alternative lenders. The big banks, with their greater financial strength, don’t much look at down-payment size in setting mortgage rate discounts for in-branch clients,” Carrick explained. “But there are signs of a new favouritism toward people putting less than 20 per cent down. In a recent Bank of Montreal promotion offering up to $1,000 cash to first-time buyers, one of the conditions is that they require mortgage-default insurance.”
“Discrimination against people who save big down payments might be addressed if regulators follow through on a proposal to have lenders share some of the risk if an insured mortgage goes into default.”
In addition, RateSpy’s Robert McLister highlighted an additional benefit to fully paying the 20 per cent: More equity will prove invaluable to maintaining solvency, especially if residential reale state prices decline.
“If you’re trying to counsel people on being prudent, then you want to tell them to put down as much as they can,” Carrick quoted McLister as saying.
http://www.canadianrealestatemagazine.ca/news/commentary-paying-20-down-payment-in-full-is-the-wiser-choice-today-222758.aspx
In a March 10 piece for The Globe and Mail, markets observer Rob Carrick argued that the mortgage environment of today does not favor those who carefully save and spend their hard-earned funds.
“Home buyers who put less than 20 per cent down are seen as risky enough to require that they pay the cost of default insurance for their lender. But the best mortgage rates are in some cases going to people with small down payments,” Carrick wrote.
“The indignities for diligent savers are piling up. You’ll earn next to no interest on your savings, and then some mortgage lenders withhold their best rates when you buy a house.”
Carrick added that the increased popularity of high-ratio mortgages has led to the taxpaying public essentially bankrolling these mortgages in the event of defaults.
“Because they’re basically risk-free, high-ratio mortgages get the lowest rates at alternative lenders. The big banks, with their greater financial strength, don’t much look at down-payment size in setting mortgage rate discounts for in-branch clients,” Carrick explained. “But there are signs of a new favouritism toward people putting less than 20 per cent down. In a recent Bank of Montreal promotion offering up to $1,000 cash to first-time buyers, one of the conditions is that they require mortgage-default insurance.”
“Discrimination against people who save big down payments might be addressed if regulators follow through on a proposal to have lenders share some of the risk if an insured mortgage goes into default.”
In addition, RateSpy’s Robert McLister highlighted an additional benefit to fully paying the 20 per cent: More equity will prove invaluable to maintaining solvency, especially if residential reale state prices decline.
“If you’re trying to counsel people on being prudent, then you want to tell them to put down as much as they can,” Carrick quoted McLister as saying.
http://www.canadianrealestatemagazine.ca/news/commentary-paying-20-down-payment-in-full-is-the-wiser-choice-today-222758.aspx
Monday, February 27, 2017
First-time buyers get $25K boost
A change to the property transfer tax threshold in British Columbia for first-time buyers has come into effect.
The increased threshold means that first-time buyers are now exempt from the tax on homes up to $500,000 rather than $475,000 previously. The move was introduced as part of the provincial government’s 2017 budget.
The increase has been welcomed by the British Columbia Real Estate Association but it is urging the government to index the exemption so that it increases annually.
The newly-increased exemption for first-time buyers also falls well short of the association’s recommended level of $750,000 which it was asking for during the budget consultation.
Source: http://www.canadianrealestatemagazine.ca/market-update/firsttime-buyers-get-25k-boost-221622.aspx
The increased threshold means that first-time buyers are now exempt from the tax on homes up to $500,000 rather than $475,000 previously. The move was introduced as part of the provincial government’s 2017 budget.
The increase has been welcomed by the British Columbia Real Estate Association but it is urging the government to index the exemption so that it increases annually.
The newly-increased exemption for first-time buyers also falls well short of the association’s recommended level of $750,000 which it was asking for during the budget consultation.
Source: http://www.canadianrealestatemagazine.ca/market-update/firsttime-buyers-get-25k-boost-221622.aspx
Thursday, February 23, 2017
Credit card management linked to mortgage delinquencies
The way that consumers manage their credit cards reveals how likely they are to default on mortgage payments.
A study by lender TransUnion in Canada, the US and Hong Kong, reveals that those who consistently pay more than the minimum payment on their credit card statement are less likely to be risky borrowers on other credit products.
Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.
“We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights,” said Todd Skinner, president of TransUnion Canada.
The TransUnion survey of 1,010 consumers in Canada reveals that 88 per cent of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39 per cent) are uncertain about the importance or benefits of paying off an increasingly greater amount.
Source: http://www.canadianrealestatemagazine.ca/market-update/credit-card-management-linked-to-mortgage-delinquencies-221621.aspx
A study by lender TransUnion in Canada, the US and Hong Kong, reveals that those who consistently pay more than the minimum payment on their credit card statement are less likely to be risky borrowers on other credit products.
Such findings derived from trended data could help lenders better mitigate account risks and maximize consumer opportunities.
“We encourage the use of trended data and the reporting of payment behaviour because both lenders and consumers can benefit from these newly available insights,” said Todd Skinner, president of TransUnion Canada.
The TransUnion survey of 1,010 consumers in Canada reveals that 88 per cent of respondents indicated that they more often pay a greater amount than their minimum due on their revolving debts each month. Yet a significant number (39 per cent) are uncertain about the importance or benefits of paying off an increasingly greater amount.
Source: http://www.canadianrealestatemagazine.ca/market-update/credit-card-management-linked-to-mortgage-delinquencies-221621.aspx
Thursday, February 2, 2017
New development in market popular among investors
Is this traditional student rental market ready for luxury homes?
St. Catharines, Ontario, is growing, according to a developer with high hopes for the city.
New projects, such as Union Waterfront, a development planned for the Port Dalhousie neighbourhood, is a 19 storey condo and hotel that aims to “change the face of Niagara realty.”
A lofty goal.
Arbour Vale, a new by Pinewood Niagara Builders, will include luxury condos, townhomes, and single-family residences.
“We’re bringing a new kind of look and feel to the cityscape,” says Cindi Loforti-Lepp, representative for Arbour Vale. “This development is an elegant lifestyle community more akin to what you would see near the waterfront in Oakville or Burlington.”
St. Catharines saw its average home price jump 16.4% year-over-year last year and its sales increase 15.3%.
So interest is certainly building in the small market.
“We’ve had a lot of interest so far, which is a good sign that St. Catharines is ready for and excited about this kind of lifestyle,” Loforti-Lepp said.
The Arbour Vale home will range in price from $565,888 to $778,888. The community is set for completion later this year.
It remains to be seen what sort of appetite investors will have for pricier homes in what has, for the most part, been a market geared toward affordable older homes and student rentals.
Source: http://www.canadianrealestatemagazine.ca/news/new-development-in-market-popular-among-investors-220352.aspx
St. Catharines, Ontario, is growing, according to a developer with high hopes for the city.
New projects, such as Union Waterfront, a development planned for the Port Dalhousie neighbourhood, is a 19 storey condo and hotel that aims to “change the face of Niagara realty.”
A lofty goal.
Arbour Vale, a new by Pinewood Niagara Builders, will include luxury condos, townhomes, and single-family residences.
“We’re bringing a new kind of look and feel to the cityscape,” says Cindi Loforti-Lepp, representative for Arbour Vale. “This development is an elegant lifestyle community more akin to what you would see near the waterfront in Oakville or Burlington.”
St. Catharines saw its average home price jump 16.4% year-over-year last year and its sales increase 15.3%.
So interest is certainly building in the small market.
“We’ve had a lot of interest so far, which is a good sign that St. Catharines is ready for and excited about this kind of lifestyle,” Loforti-Lepp said.
The Arbour Vale home will range in price from $565,888 to $778,888. The community is set for completion later this year.
It remains to be seen what sort of appetite investors will have for pricier homes in what has, for the most part, been a market geared toward affordable older homes and student rentals.
Source: http://www.canadianrealestatemagazine.ca/news/new-development-in-market-popular-among-investors-220352.aspx
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