The Bacher Blog

A Power Plant in the Greenbelt?

Donna Bacher — Thu, 14 Jan 2010 13:33:00 GMT

As reported at www.farm.com on January 12, 2010 " Last night was a tremendous night for the Farmers of the Holland Marsh, and the citizens of King Township. We are fortunate to have so many astute individuals willing to take up this cause, and do battle with the Ontario government! As one Councilor put it "I never would have thought we would ever have to deal with the building of a power plant in the Holland Marsh"--yah, no kidding! A hydrological study has been done, independently, which does not favour the peaker plant builder's position, and this is very good. Now, as the Township Solicitor pointed out, if the provincial government really wants this project to move ahead--it will, but they can just as easily quash the entire project! The site for this facility is in a floodplain, which goes against the Provincial Policy Statement, and as well, is not "compatible" with the business of farming in this highly productive, specialty crop area. Apparently though, the Ministry of the Environment sees nothing wrong with building a 400MW natural gas-fired power plant, and claims there will be "no negligible affects to the area". I don't know how they have arrived at this particular conclusion, since they also didn't think anything other than the most basic environmental assessment was required (i.e. the same assessment that would be given to a small windmill project). This project flies in the face of so many "protected" area policies, and different pieces of legislation that anyone who is given just the tiniest bit of information about this area is flabbergasted that this was the chosen location! Anyway, our hope of hopes is that this project will be scrapped in its entirety, so that we Holland Marsh Farmers can get on with the business of feeding the people of Ontario! "

One of Premier McGinty's claim to fame is the designation of 1.8 million acres in Ontario as a Greenbelt in 2005; a permanently protected area of green space, farmland, forests, wetlands, and watersheds that surrounds a significant portion of Canada's most populated and fastest-growing area known as the Golden Horseshoe.

According to the Greenbelt Act 2005

"The Greenbelt Act, 2005 enables the creation of a Greenbelt Plan to protect about 1.8 million acres of environmentally sensitive and agricultural land in the Golden Horseshoe from urban development and sprawl. It includes and builds on about 800,000 acres of land within the Niagara Escarpment Plan and the Oak Ridges Moraine Conservation Plan."

The Greenbelt legislation was bittersweet for farmers. Even though it protected their farms from urban sprawl, allowing them to peacefully continue their usual farming practices, it removed any possibility of ever having their land value increase beyond that of farmland. Farms that weren't in the Greenbelt instantly became much more valuable than those in the Greenbelt.

The Act specifically defined the Niagara Fruit Belt, the Oak Ridges Moraine and the Holland Marsh. These areas were recognized as being extremely sensitive and their protection extremely important, so it's amazing that a power plant in the Holland Marsh is even being considered!

Let's give another big round of applaud for our fearless leaders aka "The McGinty Gang"!!

8 Ball Politics??

Donna Bacher — Tue, 12 Jan 2010 05:08:00 GMT

Last spring, we saw the Provincial Liberals throwing Kleenex out the windows of their Happy Bus named "Majority", as they announced the introduction of the Harmonized Sales Tax, effective July 2010. Of course they were aware that their humble subjects were living through the worse financial meltdown since the Great Depression, but when McGinty shook his "8 Ball" and asked for direction, it indicated that "anytime you have a majority is a good time!".

What does the HST mean for the average real estate transaction?

The residential resale homes will be exempt, just as they are with the GST, however, it's the services involved with the transaction that will be subject to a hefty 8 percent Provincial sales tax component of the new HST. Industry experts claim that it will cost the average home buyer an additional $2,000.00 http://www.newswire.ca/en/releases/archive/March2009/26/c4519.html

Now, considering that the Province already collects a sneaky little tax called the Land Transfer Tax each and every time a property is sold in the Province, this new sales tax on the services involved with the sale should be a pretty bitter pill to swallow for most Ontarians, especially if that Ontarian is also a Torontonian! The residents of that beautiful City were already held hostage by their Mayor when he introduced the Municipal Land Transfer Tax back in 2007/2008. Check out the nifty calculator supplied by our friends at the Toronto Real Estate Board (TREB) http://www.torontorealestateboard.com/LTT_splash/ltt_calculator.htm

Just for fun, lets tally up the taxes generated on the average real estate transaction. A house in Hamilton purchased for 250,000.00 and a house in Toronto, purchased for 500,000.00

Hamilton- $250,000.00 HST on Commission of 5% $ 12,500.00 @ 13% = $1,625.00

HST on Legal Fee's Buyer $800.00 @ 13% = 104.00

HST on Legal Fee's Seller $700.00 @ 13% = 91.00

HST on Home Inspections, Appraisals etc $700 @ 13%= 91.00

Land Transfer tax 1% of 250,000 less $275.00 (2500 - 275)= 2,225.00

TOTAL TAX- Province 3,401.00

Federal 735.00

GRAND TOTAL..... 4,136.00 OUCH

Now to the Torontonians.....yes, it's much more expensive to live there!

$500,000 house sale- City of Toronto Municipal Land Transfer Tax $5,725.00

Provincial Land Transfer Tax 6,475.00

Commissions 5% 25,000 @ 13% 3,250.00

Legal Fee's Buyer/Seller $2,000 @ 13% 260.00

Inspection/Appraisal Etc.... $800 @ 13% 104.00

Total City 5,725.00

Total Province 8,699.00

Total Federal 1,390.00

GRAND TOTAL 15,814.00 SUPER OUCH!!!!!

When you think about it, thats an awful lot of after tax dollars going to pay more non deductible taxes each and every time a humble subject wants to move! Matter of fact, in 2008-2009, the Province of Ontario reported Land Transfer Tax Revenues of $1,013,000,000 dollars, down $358 Million from 2007-2008. http://www.fin.gov.on.ca/en/budget/paccts/2009/09_cfs.html#sc1

So, lets go to the Federal Government. Harper is very happy that the Ontario Liberals have put this plan into action. But, at the same time, Jim Flaherty, Canada's Minister of Finance has been hinting that the drones of the land are getting a tad bit too comfortable with the low interest rates enjoyed for several years. He's hinting at changes to minimum down payment and amortization periods because he doesn't want to see people get into financial trouble when they buy a house and the interest rates begin to ebb upwards. Wow, a politician actually feeling for the little people, waiving the "I shall save them from themselves" banner.

I know no one asked me, but I'm going to toss my "2010 prediction hat" into the ring here.

Prediction # 1...we're going to see a buoyant real estate market for the next 5 months, with first time home buyers racing to get mortgages locked in at nice low rates....plus save a thousand or two on the HST.

Prediction # 2...the buoyant real estate market is going to increase retail sales as people buy furniture, appliances and everything else that Home Depot has to offer.

Prediction # 3...Mr. Flaherty will put in the first major increase in interest rates in early March, 2010...just to stimulate those first time home buyers a bit more! People will be locking into mortgages right and left.

Prediction # 4...New home starts will post a gain for the first quarter...simply as a result of stimulus money..but we'll all think that the recession is truly over!!! Yahooooooo!!!

Prediction # 5...The home frenzy will increase in May and early June, as Mr. Flaherty announces that minimum down payments are increased from 5% to 8% affective July 1, 2010.

Prediction # 6...July 1st, 2010...the HST is ushered in...prime has gone up to 4%....amortizations are reduced to 30 years...and the market grinds to a hault...and a super recession may loom over the Country while all of the Politicians are playing golf over the summer. http://www.upi.com/Real-Estate/2010/01/05/Mortgage-Rate-Prospects-Stir-Fears-of-Re-Recession/5041262702687/

Home ownership should be affordable to everyone and the Governments of the day should realize how important the Housing Sector is to the economy. Are either the Federal or Provincial Governments acting in a responsible fashion right now, or are they they like children playing with matches? Time will tell...and here's hoping that my predictions are the farthest things from the truth!

Buying and Selling: Fall update

Donna Bacher — Tue, 29 Sep 2009 14:44:00 GMT

Fall always seems to be one of the busiest times of the year in Real Estate and this year doesn't seem to be an exception to the rule. Even though it's already the end of September, the market seems to be just waking up with a tremendous amount of vigour. As we went into the recession, many people would ask me if I was concerned about the market. Having been a Realtor for 26 years now, I've seen a few previous down turns in the economy. The end of the 80's, the 1990-1995 Bob Rae days, and a bit of a downturn earlier in this decade. Regardless of the nature of the downturn, housing prices always seemed to not only recover, but escalate to a price well above where they started.

During these times people still have a requirement to sell and buy Real Estate. Recessions may be powerful, but they can't stop the circle of life! Everyday, somewhere in any City, people are getting married or having more children or becoming an empty nester...or getting a divorce...or dying. That is precisely why real estate is such an incredible investment. There are two things that people need...food and a roof over their head!

Housing prices may have declined a bit over the past year or two, but as the big recession cloud moves away, people are stepping out from their dwellings ready to get a move on with their life! Interest rates are at an all time low and the prices are great!

Some investment experts seem to be waiving the white flag, favouring Real Estate over other forms of investment vehicles. Residential Real Estate is the only investment that you can live in....and if it's your principle residence, it's an investment that is completely sheltered from income tax! Considering that 26 years ago, a regular 3 bedroom brick house in East Hamilton would have sold for $40,000 and today, that same house would sell for $220,000, even after the worse recession since the great depression, should be a pretty clear indicator that investing in a roof over your head is one of the best investments you'll every make!

Changing Times!!

Donna Bacher — Tue, 15 Sep 2009 15:53:00 GMT

Real Estate is no different than any other industry...there's constant change. My question always seems to be "Why??" I guess the answer is simple...the world is continuously evolving and becoming more complex, therefore it only stands to reason that the industry in our world must become more complex as well!

Yesterday, at our monthly sales meeting, a young enthusiastic "ex-realtor" gave a presentation showing us the latest "marketing" tool. Tell me, is selling techno to Realtors easier than selling houses? Several months ago another gentleman demonstrated the latest in home inspection gizmo's, an expensive hand held device, capable of detecting moisture or air leaks behind oh so innocent looking walls! Who would ever want to employ an inspector that didn't have one of these? Was he an ex-realtor as well!! Then my Blackberry vibrates with an incoming e-mail, advising me that there's a new method for me to retrieve my answering service messages after hours, and I'll be able to save, file, duplicate, forward and analyze with great detail every message from the answering service! Wow!! Probably designed by another ex-realtor!!!

Soon we'll be introduced to "Poken", a nifty little device that will allow all of us to simply touch our Blackberry or smart phones together and transfer our contact information! What the heck is going on??? Is techno going to kill off the business card??

Seems to me that Realtors are sitting ducks for every single type of technology and gizmo being developed...and we're the first stop for any "ex-realtor" who is now selling "anything!!" ...everyone sells the Realtor who is simply trying to sell a house! And....we BUY everything, hoping that it will increase our ability to earn a living!

Yes...information is being distributed in a much different manner than it was 25 years ago, but one thing about Real Estate, is it's a very up close and personal affair. It requires physical movement by all parties involved. Buyers have to physically see a house, they have to experience it and determine if they would like to live there. The Realtor is present and helps them in the process. Now, what does this have to do with technology??? Nothing!!! It doesn't matter how many tweets I do in a day, or how many facebook friends I have, or how many people are viewing my properties via virtual tours....the only thing that matters are the people who I physically meet with and the houses that I physically list or sell....it's that interaction that can never be duplicated by technology.

Soooo...I can't get too excited about this last little bit of techno-marketing hoopla...it's no different than the digital picture was 15 years ago....and I can't speak for other Realtors... all I want to do is sell houses!!!

The Hungry Realtor's Restaurant Guide....DB

Donna Bacher — Fri, 09 Feb 2007 00:58:00 GMT

Well...it's another week in Real Estate Land...and time for another Restaurant Pick! This week...the Pick is easy...it's a real Sweetheart of a Restaurant...and one Sweetheart of a Proprietor! The Keg Restaurant on Upper James, near the Linc is hard to beat! Incredible service and absolutely fantastic food at more than reasonable prices. Kudo's to the owner...who remains anonymous to me...but our paths will cross very soon! As a supporter for the 2006 Realtors Association of Hamilton/Burlington Christmas Tree of Hope, this gentleman bid on and won, the Toronto/Niagara Sight Seeing Flight that I had donated! Now, one may ask...does he know that I'm flying the plane??? mmmmm....shhhhhh...he'll find out soon enough!

Check it out at The Hungry Realtor

Deal...or No Deal!

Donna Bacher — Thu, 08 Feb 2007 20:48:00 GMT

Howie sure makes Deal or No Deal look like a fun...doesn't he? I don't watch a lot of TV, but I did catch an episode of it last week. I immediately was able to draw a parallel with that show...and various Real Estate scenerio's I've seen or experienced over the years. It was amazing to watch how adrenaline can dictate the way a person will react. Fear, excitement, anticipation, hopes, dreams, the what if's.

Our games of Deal or No Deal, are not played out with scripts or in front of a TV crew and lights, rather, they are privately screened shows, usually unfolding on someones kitchen table. If Real Estate was a finite math, there would never be a game like this. Things would be exact...and simple, and we all know, Real Estate is far from simple. A good Realtor can certainly help make things easier for their clients, but even then, situations may arise, when emotions flare, hopes and dreams seem lost and excitement turns to disappointment.

As a Realtor, we must weigh all of these elements. Sometimes I have sat across the table from a Seller and their Representative, simply stunned by the way the whole presentation was handled. As I leave the table...carrying my "NO DEAL" folder, I search for solutions...How can I get this Buyer together with this House and make the Seller inside that house...with his Sales Rep, happy as well? lol Of course, there are times when it is possible and there are times when you and you're Buyer client just have to hit the road again.

Yes, it's always Deal or No Deal in the world of Real Estate.....but whether you're a Sales Rep, Buyer or Seller, nothing decreases your chances of experiencing the "No Deal" more than a good dose of "Education and Information". Make sure all the information is in front of you and make sure to analyse the "Pro's" and "Con's" of accepting the offer as well. Tell your emotions to go sit in the car, while you carefully review the potential "Deal" you have sitting in front of you. For the majority of Canadians, their home is their single greatest asset. Don't let that Deal hopeful become a NO DEAL reality. Yes, Win/Win offers happen every day!

Make sure you get to shout "Deal" in your next Real Estate transaction!

Donna

The Lawyers have arrived!

Donna Bacher — Wed, 07 Feb 2007 14:56:00 GMT

I've been absolutely dying to write something about this interesting industry development....Lawyers jumping into the Real Estate Sales bandwagaon! lol Yes, I'm sure everyone is aware of the new service that some area Lawyers have started....they'll list your house on their "Private for Sale" website....and help you with absolutely everything...at a fraction of the cost of using a Realtor. lol

Now, looking quickly, this sounds like an incredible idea. Who best to serve your needs than a Lawyer! They can help you with absolutely everything...writing the clauses necessary to protect your interest, advice on how to arrange an appraisal to establish a value for your home, plus everything else that a Realtor does....and save you thousands of dollars to boot! From the surface, it would appear that a Home Owner can save literally thousands of dollars by cutting out the middle man!

Well, let's really take a look at the whole scenerio! First of all, Lawyers and Realtors do not work the same. I always say that Lawyers are warriors...and the Realtors are the lovers.....Lawyers have become lawyers because they love "LAW"....Realtors have become Realtors because they love "PEOPLE". Lawyers would like to love people the same as a Realtor does....however...they were not born that way! It takes a very special person to be a Realtor. It takes compassion, understanding and a dedication to utilize every ounce of empathy for a particular situation possible....without receiving a single cent until the job is completely done. A Lawyer on the other hand....asks for a retainer...and if you loose....well...you know the end of the story. A Realtor drops everything they're doing to present an offer to the Seller....because they know that "Time is of the Essence"....a call to the Lawyer may very well result in "Come into my Office on Monday at 10 " and perhaps Mr. & Mrs. Buyer see a better buy over the weekend....and there is no offer on Monday at 10!

I'm not saying that some people may not be very well served by this new service Lawyers are providing. If only Real Estate deals were so sterile, that all we had to do is put an ad on a website, put a sign on the lawn and write up the offer. It just doesn't work that way. That's why Realtors roles are so very important. We know how to negotiate..we bring people together by assessing their needs...and how to keep parties working together, thru all the emotional hoopla and we know the business is very "instant". On the other side of the coin, we have always depended on the Lawyers to know the law surrounding Real Estate.

People should be aware that simply because a lawyer is willing to list your house on their "Private for Sale" website and do all the necessary Real Estate related work...it may not be a super good idea. Look very closely at your rights as a consumer....ask yourself if there could be a potential conflict of interest. In an era when there's great emphasis put on Realtors to avoid conflict of interest....and ask yourself a simple question..."Aside for the Lawyer....who really benefits from having my house on their website?" lol In my humble opinion....it's a great way for them to get business...and that's about it!

Just my thoughts....Donna