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Federal Budget has Housing Market in mind: 

Tax credits available for renovations, first-time homebuyers 

The 2009 Federal Budget offers up several financial breaks for first-time homebuyers and home-owners looking to improve the value of their homes through renovations. 

First-time buyers could see savings of up to $750 to alleviate closing costs by way of a $5,000 non-refundable income-tax credit on a qualifying home purchased after Jan. 27, 2009.
This is welcome news for pro-spective real estate clients debat-ing whether they should wait for better financial times. 

Coupled with the Province of Ontario’s rebate of up to $2,000 for Land Transfer Tax for first-time homebuyers, potential savings are substantial. 

In a further effort to stimulate the housing market, the proposed budget offers to increase by $5,000 the maximum amount first-time homebuyers can withdraw from their RRSPs. 

Under the Home Buyers’ Plan, $25,000 can now be withdrawn, up from $20,000, with the stipulation the money be repaid over a 15-year period, beginning in the second year after it is withdrawn. 

The budget also contains something for prospective sellers: A Home Renovation Tax Credit— a one-year, temporary 15 per cent income tax credit on eligible home renovation expenditures for work performed or goods acquired between Jan. 27, 2009 and Feb. 1, 2010.
A credit may be claimed on eligible expenditures exceeding $1,000 but no more than $10,000, putting up to $1,350 back in the homeowners’ pockets. 

This provides a great opportunity for sellers deciding if they should spend money to complete a few renovations in order to make their homes more attractive to potential buyers. 

Source: Robert Riopelle, Riopelle Griener Professional Corporation 

 

 

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Buying and selling a home is one of the biggest events in your life.  As top Ottawa Area real estate agents, we have the experience and track record you are looking for.  Please let us help.

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Real Estate Tips
Cosmetic Improvements >Handle Needed Repairs Early

There is a standard chain of events that occurs when an offer comes in on a home. After a meeting of the minds, the buyer often brings in a home inspector who may find a few items that need to be repaired. The real estate agent gives the homeowner a list of the requested repairs. What comes next?

In most transactions, the seller will take care of the repairs. Many sellers wait until the week before the closing to call someone to do the work, because they want to be sure that they are going to make it to the closing table before they spend money on repair work. If you are responsible for making repairs to a home you are selling, make sure you have the work done well in advance of the closing date by licensed professionals who will stand behind their work. If the work is done at the last minute and is incomplete or unsatisfactory, it could cause complications at the closing. You should provide the buyers with all the receipts and the names of the persons to contact in case there is a problem with the repairs.

See All Tips In The "Cosmetic Improvements" Category >
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Real Estate Trivia
Q 
Where is the world's largest wine cellar, and how big is it?

A 
A company in the center of the wine-growing district of South Africa has a cellar that covers an area of 54 acres and has a capacity of 27 million gallons.
See More Real Estate Trivia >


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