Ontario introduces Healthy Homes Renovation tax credit

The province last fall introduced the Healthy Homes Renovation Tax Credit, a permanent, refundable personal income tax refund for seniors and the family members who live with them.

Those who qualify can claim up to $10,000 worth of home modifications on their tax returns and receive back 15 per cent of eligible expenses. A household that spends $10,000 on eligible home renovations potentially can get back $1,500. The tax credit has a $10,000 maximum per couple.

Qualified applicants must be 65 years or older by the end of the year for which he/she is claiming the credit. Family members can qualify, too. If you modify your home to accommodate a live-in relative who is 65 or older, you can claim eligible expenses on your personal income tax return.

Seniors and their family members at all income levels are eligible.

Eligible renovations include walk-in bathtubs, wheel-in showers, widening passage doors, lowering existing counters/cupboards, grab bars around a toilet, tub and shower, handrails in corridors, wheelchair ramps, stair/wheelchair lifts and elevators, and non-slip flooring in the bathroom.

Expenses that don’t qualify include renovations or recurring repairs such as plumbing or electrical work, repairs to a roof, the installation of new windows, or a new heating and air conditioning system. Also not included are devices such as equipment for home medical or home safety monitoring, wheelchairs, walkers, side-swing ovens and appliances with front-loaded controls, fire extinguishers, smoke alarms and carbon monoxide detectors.

Ditto for services like landscaping, housekeeping and home care.

However, there are other programs that help those with disabilities remain in their homes, including the Assistive Devices Program, which provides funding to people with long-term disabilities living independently, and offers access to more than 8,000 assistive devices, like prostheses, wheelchairs/mobility aids, hearing aids and respiratory equipment.

The full list of expenses that are eligible for the Healthy Homes tax credit can be found at ontario.ca/healthyhomes. There’s also an online calculator to help applicants determine how much money they could get back.

To get the credit, individuals must claim their total expenses on their personal income tax returns.
 

For the 2012 tax year, applicants can claim expenses for work that was paid for or billed for between Oct. 1, 2011 and Dec. 31, 2012. For subsequent tax years, individuals can claim expenses related to work that was paid for or billed for in that particular year.

Even if homeowners do the work themselves, or they have a friend or family member do the renovations free of charge, they can still claim the amount spent on materials for the modifications, but not the cost of labour.

The province recommends that applicants save all receipts from retailers, suppliers and contractors related to these home modifications. While it’s not necessary to submit them with the tax return, it’s important that applicants have them on hand if they’re asked by the Canada Revenue Agency to produce them to verify expenses.

For more information call 1-866-668-8297 or go to ontario.ca/healthyhomes.

By:Ryan Starr Staff Reporter., Published on Thu Feb 21 2013

http://www.thestar.com/life/homes/2013/02/21/ontario_introduces_healthy_homes_renovation_tax_credit.html

The Elusive Measure Known as the Square Foot

You would think finding the square footage for a home or commercial space would be easy business.... Have a read:)

http://www.nytimes.com/2010/12/19/realestate/19cov.html?pagewanted=all&_r=0

SOLD - 20 Dean Park Rd Scarborough

I was the cooperating agent on this deal representing the buyer as a client. The unit at Dean Park Rd was not the first one we made an offer on.

There was a unit in at Dean Park Rd listed for just over 190K in the beginning of December. I pulled recent sold comparable units in the building and determined the property was worth 183-186K. I provided my research for the listing agent and seller to review. The seller wated full asking price and we were not offering a penny more than 186K - a deal could not be reached.
 

My client was in no rush to move and I figured showings would be slow do to Christmas and New Years celebrations. We could wait a couple of weeks at which point I was sure the sellers would call us back begging to take our original offer. We waited....
 

After a month had passed without hearing from the sellers agent I decided to give him a call. I was surprised we hadn't heard from them, the property was still listed. After a brief conversation exchanging seasons greetings I was told the seller was sticking to his price. I wished them luck and continued my day.
 

The very next morning the unit in 20 Dean Park Rd came on the market. Roughly the same square footage, cheaper maintenance fees, a better view, and listed for 15K less...

 

Some neighbourhoods are all about bidding wars while other area's require listings to be on the market for weeks, sometimes it comes down to understanding the time of year and how that affects sales. Regardless of what's happening in the market one must always know what the actual market value of a property is in order to choose the proper strategy.

 

Values are not static and subject to change. I'm not sure what the status of the other unit is but I can tell you that from a comparable perspective it's actual market value has changed based on what 20 Dean Park Rd Sold for.

 

In the end my client purchased a great unit at a great price.  My client never had to rely on my opinion - I presented him with the facts allowing him to make the right choices.  All in all a deal well done...

White. A favorite of mine due to its clean, sharp look, ease to touch up or repaint.

Check out the link below for helpful tips on bringing white rooms to life.

http://design-milk.com/decorating-ideas-12-white-rooms-with-pops-of-color/

How to install floating Vinyl Plank Flooring

Hi everyone, 

I just installed a floating vinyl floor in one of my basement rental units and an attic bedroom.  I avoid laminate and wood flooring in basements due to moisture and potential flood damage.  I'm not a fan of wall to wall carpeting for the same reasons and because it traps dust, debris, and odour.  Tile is great for basements but it can be cold and expensive.   

Depending on the neighborhood, client profile, and the rental rate you wish to achieve it may make sence to spend the extra money on faux wood ceramic tile flooring. 

It's important to have an understanding of how the style and materials used in your rental units, even basement apartments, will affect how fast it will rent, how long tenants will stay, and how much they will pay for the space.
 For my particular install I used Allure Golden Maple Vinyl flooring.  The color and faux wood grain was a very close match to the existing white oak floors in the upper units of the property.  I was introduced to the product from a client of mine, Young-Ho, who recently installed Allure flooring in his Martial Arts Dojo, CFH STUDIO, at St Clair and Bathurst in Toronto.  If its tuff enough for the Dojo it'll do just fine in the basement. 

I'll get some pictures up ASAP.  Enjoy the video.

Interesting article on Landlord and Tenant disputes brought before the courts.

http://www.moneyville.ca/article/1238875--how-to-win-a-landlord-tenant-dispute#.UHgvReOJPD8.facebook

ANNEX TRIPLEX - SOLD

I acted as the purchasing agent on this deal.  This home is a perfect example of an income producing property. This triplex is fully occupied with AAA tenants, kept in excellent condition by the landlord and tenants, and required no renovations or improvements. The cost of owner occupiable, 3 unit homes starts at around 175k/per door and can easily go up to 400k/per door depending on area, upgrades, and square footage.

BASEMENT APARTMENT RETROFIT - "Untagling the web"

In a city like Toronto, where the apartment vacancy rate is low and real estate values are high, many people rely on the rental income from a basement apartment to give them the edge they need to own a home. But is it a ‘legal’ apartment? If not, how can it be made ‘legal’? In the process of legalizing the apartment, will I be inviting ‘trouble’? What if the ‘city’ prescribes improvements that are prohibitively expensive? What if the ‘city’ decides that I can’t have an apartment?  To read more click on the link below.

http://www.carsondunlop.com/2011/12/basement-apartment-retrofit-untangling-the-web/

Appliance Repairs and Maintenance Information

Hi Everybody,

I just received a call from one of my tenants regarding a leak from inside their fridge. The leak is not coming from the freezer which left me confused so I jumped on the net and started looking for help. I found a great website on appliance repairs, and maintenance tips. If you ever have a problem look them up. Leaky fridge fixed:)

Follow this link to Appliance Aid:

www.applianceaid.com/repair-help.html

Decorating a Property to Rent

So you have just bought a new property to rent out but it’s obvious that the place has seen better days? Before you start with the refurbishment it is wise to take a step back and consider the best way to go about this. Many landlords have embarked on extensive refurbishments of their rental properties only to realise that some of the work they have undertaken does actually not increase the amount of rent they are able to achieve.

Time is an important consideration in any refurbishment programme as you will generally not be able to let the property until the refurbishment is complete. A quick and effective refurbishment programme can help to increase the amount you are able to change tenants to rent from you while keeping the void period caused by the refurbishment to a minimum. Keeping it simple really pays off here. Firstly, consider doing the work that has the highest visual impact but is quick to complete.

Painting walls, radiators and doors can make a rental property much more appealing with only a couple of days work. New curtains and a few pieces of cheap but well chosen furniture can transform a room instantly. New flooring or tiling will take longer but might be worth the time and money if the property to rent is in a poor condition. If possible, stay away from any major alterations, such as kitchen extensions, window replacements and structural work. While these are things you might want to do in your own house, always bear in mind that this is not a place where you will live yourself. All these works will take a considerable amount of time while having very little or no effect on the achievable rent.

KEEP IT NEUTRAL

Although it is tempting to decorate according to your own taste, decorating a property to rent is not the same as refurbishing your own house. Your flats or houses for rent should appeal to a wide range of potential tenants. To achieve this, all decoration should be neutral in colour. Tenants are then able to put their own stamp on the property to rent by hanging pictures and through their belongings.

Painting all walls white is ideal – not only does it give the property to rent a clean and airy feel, it is also the cheapest paint to buy. Keep in mind that you will need to paint over marks and scratches when the tenants move out. This will be easy if all the walls are white, but it will be a lot harder to find a matching colour for anything else in a couple of years time.

ADVERTISING A PROPERTY TO RENT WHILE REFURNISHING

You should start advertising and looking for tenants as soon as possible, even while the work is going on. Most tenants won’t mind this and might indeed be taken by the idea of being able to move into an apartment or house for rent which has just been refurbished. It will also give you time to collect references and carry out credit checks while completing the refurbishment. As soon as the paint is dry your new tenants will be able to move in, keeping the void period to an absolute minimum.

Tips: Turning Anxiety to Asset

Don’t let anxieties keep you from gaining assets. At first intimidated by the prospect, Marea Taylor quickly found her concerns were quickly answered. For instance:

What if I can’t pay my mortgage?
If the unit is rented and money is managed well, you will always cover your mortgage payment-plus.

What if I can’t rent my unit?
In 10 years Marea has never had a vacancy.

What if my tenants have problems?
On average over the past decade, Marea responds to 4-5 tenant issues per year – at a cost of $2000 to $3000 per year. Not bad considering the benefits.