July 2010 Ontario Economic Fundamentals
- Thread starter Amber
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Ontario`s productivity challenge: Step up, business leaders
he post-recession world is very different from the pre-recession world. Consider these few examples: In the old world, we had a low dollar. In the new world, we will have a high dollar. In the old world, we had low-cost fuel. In the new world, we will have more expensive fuel. In the old world, our huge baby boomer population was working. In the new world, our baby boomers will retire – an inevitable social trend that begins next year. This is going to mean huge cost pressures for health care
and huge pressure on the younger generation.
So the question becomes: Given the realities of this new, post-recession world, what do we need to do to secure a brighter future?
To answer that question, our government introduced the five-year Open Ontario Plan. It`s a plan to make the province one of the most competitive places in the world so that we can win new investments and new jobs.
It includes measures such as cutting corporate income taxes, eliminating capital taxes and bringing in the harmonized sales tax. The HST will save businesses money and allow them to keep the employees they have and hire more people.
These tax reforms are cutting Ontario`s marginal effective tax rate on new business investment in half.
Yet we need to do more than just create a better tax environment for business.
Read full article here
he post-recession world is very different from the pre-recession world. Consider these few examples: In the old world, we had a low dollar. In the new world, we will have a high dollar. In the old world, we had low-cost fuel. In the new world, we will have more expensive fuel. In the old world, our huge baby boomer population was working. In the new world, our baby boomers will retire – an inevitable social trend that begins next year. This is going to mean huge cost pressures for health care
and huge pressure on the younger generation. So the question becomes: Given the realities of this new, post-recession world, what do we need to do to secure a brighter future?
To answer that question, our government introduced the five-year Open Ontario Plan. It`s a plan to make the province one of the most competitive places in the world so that we can win new investments and new jobs.
It includes measures such as cutting corporate income taxes, eliminating capital taxes and bringing in the harmonized sales tax. The HST will save businesses money and allow them to keep the employees they have and hire more people.
These tax reforms are cutting Ontario`s marginal effective tax rate on new business investment in half.
Yet we need to do more than just create a better tax environment for business.
Read full article here
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- Oct 12, 2007
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- 586
Bedbugs a potential deal breaker for real estate transactions in Toronto
It`s an occupational hazard Barry Lebow would rather do without.
Before entering a home to inspect it, the veteran real estate appraiser typically gives the butt of his jeans a quick dousing of bug spray.
"I promised myself that I wouldn`t bring home bedbugs again — that stuff is murder," says Lebow of Lebow, Hicks Ltd. "We didn`t sleep for three weeks."
Lebow says he once inspected a home in the Toronto area and ended up bringing home some of the tiny bugs. He ended up with welts all over.
Global travel and the reduction in the use of pesticides means bedbugs have made a resurgence worldwide.
The tiny pests are non-life threatening, but they can make life miserable for home owners.
In June, the William Osler Health Centre hospital reported a limited infestation with bugs found in the staff lounge and in parts of the emergency department. The report brought alarm from some patients worried they would end up taking the pests home with them.
Read full article here
It`s an occupational hazard Barry Lebow would rather do without.
Before entering a home to inspect it, the veteran real estate appraiser typically gives the butt of his jeans a quick dousing of bug spray.
"I promised myself that I wouldn`t bring home bedbugs again — that stuff is murder," says Lebow of Lebow, Hicks Ltd. "We didn`t sleep for three weeks."
Lebow says he once inspected a home in the Toronto area and ended up bringing home some of the tiny bugs. He ended up with welts all over.
Global travel and the reduction in the use of pesticides means bedbugs have made a resurgence worldwide.
The tiny pests are non-life threatening, but they can make life miserable for home owners.
In June, the William Osler Health Centre hospital reported a limited infestation with bugs found in the staff lounge and in parts of the emergency department. The report brought alarm from some patients worried they would end up taking the pests home with them.
Read full article here
- Joined
- Oct 12, 2007
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- 586
Province announces funding for rapid transit in Waterloo Region
The Province of Ontario today committed $300 million towards the capital cost of constructing a rapid transit system in Waterloo Region.
June 28, 2010) The Province of Ontario today committed $300 million towards the capital cost of constructing a rapid transit system in Waterloo Region.
"We are pleased that the Province continues to recognize the importance of the Region`s rapid transit project, and has made a specific funding commitment to the initial phase of the project," said Regional Chair Ken Seiling.
In June 2009, based on the extensive evaluation and analysis conducted during the Rapid Transit Environmental Assessment, Regional Council:
Read full article here
The Province of Ontario today committed $300 million towards the capital cost of constructing a rapid transit system in Waterloo Region.
June 28, 2010) The Province of Ontario today committed $300 million towards the capital cost of constructing a rapid transit system in Waterloo Region.
"We are pleased that the Province continues to recognize the importance of the Region`s rapid transit project, and has made a specific funding commitment to the initial phase of the project," said Regional Chair Ken Seiling.
In June 2009, based on the extensive evaluation and analysis conducted during the Rapid Transit Environmental Assessment, Regional Council:
Read full article here
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Ontario`s Power Trip: Is this `smart`?
Six years ago, on April 19, 2004, Ontario Premier Dalton McGuinty delivered a speech to the Ontario Legislature entitled "Building a Culture of Conservation." A few quotes from that speech: "That`s why our government is committed to replacing the dirty coal plants that are polluting our air and damaging our health"; "Our government will make it possible for Ontarians in every home, business and government office to save energy, save their hard-earned money and save our environment"; "Smart meters, together with more flexible pricing, would allow Ontarians to save money if they run appliances in off-peak hours."
He didn`t mention that the lights might go out more frequently or that power to major centres could be cut off due to exploding transformers and other manifestations of underinvestment in basic electricity infrastructure.
On Monday, the electricity supply to about 250,000 residents of Toronto cut out in the middle of a major heat wave, a system failure triggered by an exploding transformer, but widely blamed on failing and deteriorating infrastructure.
Read full article here
Six years ago, on April 19, 2004, Ontario Premier Dalton McGuinty delivered a speech to the Ontario Legislature entitled "Building a Culture of Conservation." A few quotes from that speech: "That`s why our government is committed to replacing the dirty coal plants that are polluting our air and damaging our health"; "Our government will make it possible for Ontarians in every home, business and government office to save energy, save their hard-earned money and save our environment"; "Smart meters, together with more flexible pricing, would allow Ontarians to save money if they run appliances in off-peak hours."
He didn`t mention that the lights might go out more frequently or that power to major centres could be cut off due to exploding transformers and other manifestations of underinvestment in basic electricity infrastructure.
On Monday, the electricity supply to about 250,000 residents of Toronto cut out in the middle of a major heat wave, a system failure triggered by an exploding transformer, but widely blamed on failing and deteriorating infrastructure.
Read full article here
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Toronto existing home sales fall by 23 per cent in June
Robert Ede calls it "buyer`s revenge."
After more than a decade of an unprecedented bull market in Toronto real estate, sales are cooling off. On Tuesday the Toronto Real Estate board reported a second consecutive monthly drop in sales for the year.
"In the old days the vendor called the shots. It was do you want the property or not? Because we have a lot of other people lined up for it," said Ede, an agent with Remax. "Now buyers are saying I`m going to think about it – and you better give me a good deal."
Read full article here
Robert Ede calls it "buyer`s revenge."
After more than a decade of an unprecedented bull market in Toronto real estate, sales are cooling off. On Tuesday the Toronto Real Estate board reported a second consecutive monthly drop in sales for the year.
"In the old days the vendor called the shots. It was do you want the property or not? Because we have a lot of other people lined up for it," said Ede, an agent with Remax. "Now buyers are saying I`m going to think about it – and you better give me a good deal."
Read full article here
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Roseman: How to compare energy bills online
With your fans and air conditioners running full blast in this summer heat, you should be paying close attention to your electricity bill.
Many utilities are moving to time-of-use prices, forcing customers to shift consumption to off-peak periods.
Meanwhile, many private companies are urging homeowners to avoid worries by switching to a fixed-price electricity contract.
Comparison shopping is easier now that the Ontario Energy Board has developed a billing calculator for residential electricity and natural gas customers at its website, http://www.oeb.gov.on.ca.
Read full article here
With your fans and air conditioners running full blast in this summer heat, you should be paying close attention to your electricity bill.
Many utilities are moving to time-of-use prices, forcing customers to shift consumption to off-peak periods.
Meanwhile, many private companies are urging homeowners to avoid worries by switching to a fixed-price electricity contract.
Comparison shopping is easier now that the Ontario Energy Board has developed a billing calculator for residential electricity and natural gas customers at its website, http://www.oeb.gov.on.ca.
Read full article here
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New Eco Fees Catching Consumers by Surprise
Levies Ranges From a Few Cents to Several Dollars
Checking her receipt as she left a downtown Canadian Tire, Chris Colorado noticed a new charge.
Her $1.99 bottle of dish soap was accompanied by a 13-cent "eco fee."
The levy for thousands of new products, from pharmaceuticals to fire extinguishers, quietly came into effect July 1, the same day as the harmonized sales tax.
Read full article here
Levies Ranges From a Few Cents to Several Dollars
Checking her receipt as she left a downtown Canadian Tire, Chris Colorado noticed a new charge.
Her $1.99 bottle of dish soap was accompanied by a 13-cent "eco fee."
The levy for thousands of new products, from pharmaceuticals to fire extinguishers, quietly came into effect July 1, the same day as the harmonized sales tax.
Read full article here
- Joined
- Oct 12, 2007
- Messages
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`Moderate decline` forecast for Toronto house prices
Average house prices in the Toronto market are forecast to start trending down in the second half of 2010, according to a house price survey by Royal LePage.
The real estate services company said Wednesday that house prices are expected to increase by 7 per cent by the end of this year compared with 2009. But those increases were frontloaded to the first six months of the year as buyers tried to take advantage of low interest rates and lower taxes.
"This growth has already been accounted for in the first half," said Gino Romanese, senior vice president of Royal lePage. "Average prices are expected to decline moderately for the remainder of the year."
Read full article here
Average house prices in the Toronto market are forecast to start trending down in the second half of 2010, according to a house price survey by Royal LePage.
The real estate services company said Wednesday that house prices are expected to increase by 7 per cent by the end of this year compared with 2009. But those increases were frontloaded to the first six months of the year as buyers tried to take advantage of low interest rates and lower taxes.
"This growth has already been accounted for in the first half," said Gino Romanese, senior vice president of Royal lePage. "Average prices are expected to decline moderately for the remainder of the year."
Read full article here
- Joined
- Oct 12, 2007
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Dupuis: Federal tax on new homes out of whack
The legal and land registry offices, not to mention building sites themselves, were even busier than usual during June, rising to a fever pitch this past week as the industry mobilized to close as many new homes and condominiums as possible in advance of the harmonized sales tax.
In many ways, the HST is more complicated for builders than it is for buyers, particularly as homes and condos under construction as of July 1 are subject to tax adjustments based on the stage of completion of the unit or building as of the effective date.
From a homebuyer standpoint, given that virtually every builder will be including HST in the sales prices of the home or condo, it`s really about comparing builder to builder and new homes to resale homes on a bottom-line basis.
If, as a homebuyer, you really want to see the embedded tax in your new home price, you will see the math in the final closing documents. And while you might assume that since the federal GST is 5 per cent and the provincial sales tax is 8 per cent, that the federal tax on your new home would be much less than the provincial tax, the truth is it`s the other way around.
Read full article here
The legal and land registry offices, not to mention building sites themselves, were even busier than usual during June, rising to a fever pitch this past week as the industry mobilized to close as many new homes and condominiums as possible in advance of the harmonized sales tax.
In many ways, the HST is more complicated for builders than it is for buyers, particularly as homes and condos under construction as of July 1 are subject to tax adjustments based on the stage of completion of the unit or building as of the effective date.
From a homebuyer standpoint, given that virtually every builder will be including HST in the sales prices of the home or condo, it`s really about comparing builder to builder and new homes to resale homes on a bottom-line basis.
If, as a homebuyer, you really want to see the embedded tax in your new home price, you will see the math in the final closing documents. And while you might assume that since the federal GST is 5 per cent and the provincial sales tax is 8 per cent, that the federal tax on your new home would be much less than the provincial tax, the truth is it`s the other way around.
Read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Ontario`s furtive Premier
You`ve got to hand it to Ontario Premier Dalton McGuinty. It`s not every politician who can break a campaign promise over and over again with impunity -and lately, without voters even noticing.
The promise, of course, was Mr. McGuinty`s infamous pledge not to raise taxes. He made it in writing to the Canadian Taxpayers Federation during the 2003 provincial election campaign, with a much-publicized photo-op, and has been busy flouting it ever since.
Read full article here
You`ve got to hand it to Ontario Premier Dalton McGuinty. It`s not every politician who can break a campaign promise over and over again with impunity -and lately, without voters even noticing.
The promise, of course, was Mr. McGuinty`s infamous pledge not to raise taxes. He made it in writing to the Canadian Taxpayers Federation during the 2003 provincial election campaign, with a much-publicized photo-op, and has been busy flouting it ever since.
Read full article here
- Joined
- Oct 12, 2007
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Why Ottawa is hot, hot, hot with investment condo opportunities
Forget what you`ve heard about Toronto and Vancouver being where all the action is when it comes to real estate in Canada.
Some of the best investment opportunities exist right here in small, quiet Ottawa.
Why? At first glance, Ottawa might not seem like a real estate hotbed. But for prospective investors looking to buy and rent out a condo, the city is actually one of hottest rental markets in Ontario – indeed, in the entire country.
A solid local economy, stable employment conditions and minimal new apartment construction are conspiring to produce an increasingly tight rental environment, where vacancy rates are 2.4 per cent and rents are increasing.
For those thinking of buying an investment condo, this is all great news.
As an investor/landlord, vacancy rates are a key barometer to watch closely. Canada Mortgage and Housing Corp. (CMHC) summarizes these, along with average rents, in twice-annual rental market reports.
An increasing rate essentially means rental supply is growing, which means renters have more units to choose from. For landlords, this means more competition, and therefore you may have trouble renting a property or increasing the rent. Declining vacancy rates means supply is tightening and your property may be in higher demand, which could lead to you being able to charge more rent.
Read full article here
Forget what you`ve heard about Toronto and Vancouver being where all the action is when it comes to real estate in Canada.
Some of the best investment opportunities exist right here in small, quiet Ottawa.
Why? At first glance, Ottawa might not seem like a real estate hotbed. But for prospective investors looking to buy and rent out a condo, the city is actually one of hottest rental markets in Ontario – indeed, in the entire country.
A solid local economy, stable employment conditions and minimal new apartment construction are conspiring to produce an increasingly tight rental environment, where vacancy rates are 2.4 per cent and rents are increasing.
For those thinking of buying an investment condo, this is all great news.
As an investor/landlord, vacancy rates are a key barometer to watch closely. Canada Mortgage and Housing Corp. (CMHC) summarizes these, along with average rents, in twice-annual rental market reports.
An increasing rate essentially means rental supply is growing, which means renters have more units to choose from. For landlords, this means more competition, and therefore you may have trouble renting a property or increasing the rent. Declining vacancy rates means supply is tightening and your property may be in higher demand, which could lead to you being able to charge more rent.
Read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
China`s latest export: home buyers
Half a world away, a handful of Chinese citizens are feverishly planning a Canadian real-estate shopping excursion.
A farmer, an engineer, a furniture maker and a caterer are among the 30 hopeful investors who have paid $5,500 each to take a real estate
tour of Toronto and Vancouver in August. This isn`t about tourism: Each of them expect to drop at least a half-million dollars on downtown condos during their 10-day visit.
While Chinese investors in Canada are nothing new, this delegation is thought by those in the industry to be one of the largest to travel in one group. The trip was put together by Ricky Zhang of TransAsia Investment Partners, a Chinese company that was created to help residents buy properties abroad, particularly in Canada.
Read full article here
Half a world away, a handful of Chinese citizens are feverishly planning a Canadian real-estate shopping excursion.
A farmer, an engineer, a furniture maker and a caterer are among the 30 hopeful investors who have paid $5,500 each to take a real estate
tour of Toronto and Vancouver in August. This isn`t about tourism: Each of them expect to drop at least a half-million dollars on downtown condos during their 10-day visit. While Chinese investors in Canada are nothing new, this delegation is thought by those in the industry to be one of the largest to travel in one group. The trip was put together by Ricky Zhang of TransAsia Investment Partners, a Chinese company that was created to help residents buy properties abroad, particularly in Canada.
Read full article here
- Joined
- Oct 12, 2007
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Boundary feud thwarting attempts to drill promising prospects in St. Lawrence
QUEBEC — A new border dispute is brewing between Newfoundland and Quebec.
Caught in the middle is Old Harry, named for the nearest settlement; the village of Old Harry, 80 kilometres to the southwest on Quebec`s Iles-de-la-Madeleine.
And unlike Quebec`s longtime refusal to recognize the 1927 line defining where Quebec`s wilderness ends and rocky Labrador begins, the stakes in this latest boundary discord are huge.
Old Harry, in the Gulf of St. Lawrence, is a 29-kilometre-long field of undersea hydrocarbons, estimated to hold as much as two billion barrels of oil or five trillion cubic feet of natural gas, enough to meet Quebec`s needs for 25 years.
Read full article here
QUEBEC — A new border dispute is brewing between Newfoundland and Quebec.
Caught in the middle is Old Harry, named for the nearest settlement; the village of Old Harry, 80 kilometres to the southwest on Quebec`s Iles-de-la-Madeleine.
And unlike Quebec`s longtime refusal to recognize the 1927 line defining where Quebec`s wilderness ends and rocky Labrador begins, the stakes in this latest boundary discord are huge.
Old Harry, in the Gulf of St. Lawrence, is a 29-kilometre-long field of undersea hydrocarbons, estimated to hold as much as two billion barrels of oil or five trillion cubic feet of natural gas, enough to meet Quebec`s needs for 25 years.
Read full article here
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Roseman: Lessons for leaders in Ontario`s eco fee disaster
It`s a relief to see the Ontario government suspend its controversial eco fee program for three months.
I`ve rarely seen the citizens of this province react so angrily to a new initiative.
In fact, I expected to see more hostility against the launch of the harmonized sales tax, as in British Columbia.
Instead, people seemed to channel their rage into the eco fees, which had a lesser impact on their cost of living than the HST.
Maybe it was a case of unfortunate timing, since both came in on the same day (July 1).
Read full article here
It`s a relief to see the Ontario government suspend its controversial eco fee program for three months.
I`ve rarely seen the citizens of this province react so angrily to a new initiative.
In fact, I expected to see more hostility against the launch of the harmonized sales tax, as in British Columbia.
Instead, people seemed to channel their rage into the eco fees, which had a lesser impact on their cost of living than the HST.
Maybe it was a case of unfortunate timing, since both came in on the same day (July 1).
Read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
Aaron: Toronto`s building department operations are neither open nor transparent
Before closing the purchase of their home, Pierre Marcoux and Caroline Bougie discovered the City of Toronto building department had an "open file" on the house. They wanted the seller, Darlene Remlinger, to rectify the situation by having the city`s file closed.
Typically, sellers are required by the purchase agreement to provide clear title free of any liens, mortgages, and other matters including breaches of the building code or zoning bylaws.
The purchase agreement signed by Marcoux, Bougie and Remlinger was on the typical standard form published by the Ontario Real Estate Association (OREA). It contained a very badly worded 149-word sentence which deals with title problems and outstanding municipal orders.
Read full article here
Before closing the purchase of their home, Pierre Marcoux and Caroline Bougie discovered the City of Toronto building department had an "open file" on the house. They wanted the seller, Darlene Remlinger, to rectify the situation by having the city`s file closed.
Typically, sellers are required by the purchase agreement to provide clear title free of any liens, mortgages, and other matters including breaches of the building code or zoning bylaws.
The purchase agreement signed by Marcoux, Bougie and Remlinger was on the typical standard form published by the Ontario Real Estate Association (OREA). It contained a very badly worded 149-word sentence which deals with title problems and outstanding municipal orders.
Read full article here
- Joined
- Oct 12, 2007
- Messages
- 586
- Joined
- Oct 12, 2007
- Messages
- 586
New home sales in GTA down 26 per cent in June
Higher interest rates. A new Harmonized Sales Tax. Increased building costs.
Builders in the Greater Toronto Area will face a much different set of circumstances in the second half of 2010 than in the first.
And the figures are proving the point: New home sales in the Greater Toronto Area were down by 26 per cent in June compared with the same time last year according to a report Wednesday by the Building, Industry and Land Development Association.
Read full article here
Higher interest rates. A new Harmonized Sales Tax. Increased building costs.
Builders in the Greater Toronto Area will face a much different set of circumstances in the second half of 2010 than in the first.
And the figures are proving the point: New home sales in the Greater Toronto Area were down by 26 per cent in June compared with the same time last year according to a report Wednesday by the Building, Industry and Land Development Association.
Read full article here
- Joined
- Oct 12, 2007
- Messages
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Condo dwellers, expect an HST-related fee hike
Condo fees may not be subject to HST, but that doesn`t mean condo owners won`t be dinged by the tax.
Alan Kwan, a 32-year-old recruiter for a headhunting firm in downtown Toronto, says he expects to be hit with higher condo fees in a year`s time, after the managers of his building have gone over their financial statements and totted up their additional costs from the Harmonized Sales Tax.
Read full article here
Condo fees may not be subject to HST, but that doesn`t mean condo owners won`t be dinged by the tax.
Alan Kwan, a 32-year-old recruiter for a headhunting firm in downtown Toronto, says he expects to be hit with higher condo fees in a year`s time, after the managers of his building have gone over their financial statements and totted up their additional costs from the Harmonized Sales Tax.
Read full article here
- Joined
- Oct 12, 2007
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Reading the mortgage fine print
When Mika Suokonautio and Sian Sills bought their $355,000 Toronto home three years ago, their biggest concern was the amount of their monthly mortgage payment, followed by interest rates and payment flexibility.
The couple, both elementary school teachers, settled on a 40-year, 5.09-per-cent fixed-rate mortgage with no down payment through Royal Bank of Canada. The smaller monthly payments freed up cash for home repairs, travel and the standard of living they wanted.
Read full article here
When Mika Suokonautio and Sian Sills bought their $355,000 Toronto home three years ago, their biggest concern was the amount of their monthly mortgage payment, followed by interest rates and payment flexibility.
The couple, both elementary school teachers, settled on a 40-year, 5.09-per-cent fixed-rate mortgage with no down payment through Royal Bank of Canada. The smaller monthly payments freed up cash for home repairs, travel and the standard of living they wanted.
Read full article here