Durham Region Real Estate Blog

If you have read my past blogs, you know that I am opposed to the new Harmonized Sales Tax (HST), and I did try to get as many people as possible to write all the politicians they could, in order to have the new tax defeated.  This didn’t work and it looks like we are going to have the new tax, like it or not. So let’s embrace the new tax!

The Ontario provincial government has announced that it intends to combine the eight percent Provincial Sales Tax wit the five percent federal Goods and Services Tax, creating a thirteen percent HST. The tax is not yet in effect, but will start on July 1, 2010. While the new tax will not apply to the purchase price of a re-sale home, it will apply to services such as moving costs, legal fees, home inspection fees and Realtor® commissions.

There are transitional rules that will apply to HST and Realtor® commissions. The HST will general apply to services, expressed as a percentage, that the services are performed on or after July 1, 2010. However, if 90% or more of the services are performed before July 1, 2010, the HST will not apply.

For example, if I am selling your home and list it on June 1, 2010, receive an offer on June 15, 2010 and the transaction closes on July 2, 2010 then, since more than 90% of my services were performed before July 1, 2010, only GST will apply to the commission at that time.

In another example, let’s say that my services to sell your home are performed from May 1, 2010 to July 31, 2010 with the sale of your home closing on July 31, 201o. Since 2/3 of my services were performed from May 1, 2010 to June 30, 2010, only 1/3 of my services were performed after the July 1, 2010 HST start date. You would be charged GST on 2/3 of the commission and HST on 1/3 of the commission.

Sure, the new rules are a little confusing, but we’ll figure it out. You should keep in mind that while my topic covers how HST will affect home sales, it will also affect all business owners. Keep in mind that if you have a GST number and are able to get GST rebates, you may want to hold off on large purchases that are currently subject to 8% PST. If you buy the item after the HST comes into effect, you can apply for the HST rebate.

So, we saw the third best year in history for sales within the Durham Region.   Statistics showed 9162 sales of single family homes in 2009, a 7% increase over 8563 in 2008 with the highest year being 2007 with 9978 sales.  Sales for the month of December came in at 507 which was down 27% from November’s 695, but still a very impressive number. Year over year average prices gained by 1.8% to $278,246 from $273,370 in 2008 even though the average price of a home in Durham Region in December was $286,724.  The total number of active listings continued to drop in 2009 to 15109, 18.6% lower than the18570 in 2008.  The resale housing market was slow at the beginning of the year but kept building to record sales in July, Sept., Oct. and Dec.  I predict that 2010 will be a positive year for real estate sales and we should see moderate growth in this important sector of our economy.

You have been told, over and over, that kitchens and bathrooms sell houses. And it’s true! You need to make the most of what you’ve got and keep it looking great.

So, when is the last time you looked up at your bathroom ceiling? Are you feeling brave? Get up right now, and go have a look. It’s o.k., this blog will still be here when you get back! How was it? There’s a pretty good chance that you’ll find peeling paint and mould growth. Moisture is the reason why – moisture and inaccessibility. Most of us aren’t tall enough to wipe the ceiling dry after a shower. And putting a coat of latex paint isn’t going to help your problem. So what are you to do?

Peeling bathroom ceiling paint is common. You need to begin by scraping. Try using a four inch wide putty knife for this job. Lift up any loose edges and get that old paint popping right off the ceiling. Be ruthless and eliminate everything that’s weak. And don’t worry about damaging the drywall because you’ll be filling the whole area later.

Once you’ve removed all the loose paint, sand the area to further refine the ceiling. You could tackle this job by hand, but an electric quarter-sheet finishing sander is an inexpensive power tool that does a much more thorough job. Put a piece of 120-grit sandpaper in the machine then go over all regions of the ceiling that include mould or area of damaged paint. Sanding removes roughness, though it will also highlight areas you thought were sound but actually need more scraping. Keep your putty knife handy!

Now you’re ready to fill the area. It may look like only a small ridge, but it’s more than paint can cover. Genuine drywall joint compound is the best stuff to use here, because it’s smooth and fine grained. Use your putty knife to apply a skim coat over the scraped areas, extending out several inches past the point where sound paint begins. Aim to apply slightly more depth of compound than necessary, then sand the area flush with the surrounding ceiling by hand. An abrasive sanding sponge is the ideal tool to use for this application.

Now you are almost ready for paint, but don’t get out the roller just yet. You much kill the remaining mould spores. If you don’t, the mould could (likely will) return sooner rather than later. You could use a solution of bleach and water for this task or search your local hardware store for a non-toxic product. Spritz it on and let it dry.

Take just two more steps to keep the mould from re-emerging. The first is coating the filled-and-killed surface with a stain-blocking primer. Look for one that is especially rated to hide mould stains. The second is to choose your paint wisely. Look for a mould resistant kitchen and bathroom paint. It will include compounds that prevent new mould from regrowing, even in the damp and challenging conditions so common on our bathroom ceilings.

So, it might not be a pretty job, but it is one that is well worth the effort, both now and when you decide it’s time to sell!