MPAC and Teranet

MPAC

MPAC (mpac.ca, AboutMyProperty.ca™, propertyline.ca) is a not‐for‐profit corporation funded by all Ontario municipalities.

MPAC is responsible for administering a uniform, province‐wide property assessment system based on current values. MPAC assesses nearly five million properties with a total value of $2.2 trillion.

MPAC provides a range of services, including the preparation of annual assessment rolls for use by municipalities and the Province of Ontario to calculate property taxes and education taxes.

 MPAC also delivers  products and value‐added services to a number of sectors including banks, mortgage firms and other assessment jurisdictions across Canada. propertyline™ is a secure e‐commerce solution for obtaining accurate, real‐time property information quickly and easily.

With propertyline™, customers can purchase assessment, site, structural, and sales data on all types of properties across Ontario. Information is refreshed weekly to ensure customers have access to the most current property information.

Teranet

Founded in 1991, Teranet owns and operates Ontario’s Electronic Land Registration System, one of the world’s most advanced land registration systems, enabling users to conduct electronic registrations as well as title and writ searches relating to real property.

Teranet also owns and operates The Property Registry in Manitoba, providing advanced land and personal property security registration and search services.  Teranet’s comprehensive suite of related data products have fundamentally increased the real estate industry’s ability to provide efficient and secure services to the public.

Teranet has built a well‐established customer base and strong brand confidence, providing electronic services to over 81,000 end users including lawyers, paralegals, real estate brokers and agents, search houses, title insurers, financial institutions, governments, police services, utilities, surveyors, credit unions, investigators and appraisers.

Teranet is managed by Borealis Infrastructure, a leader in direct infrastructure investing with well over a decade of investment experience.

With offices in Toronto, London, New York and Sydney, Borealis is the infrastructure investment arm of OMERS, one of Canada's largest pension funds with net assets of more than $65 billion and an AAA credit rating.

As at December 31, 2013, Borealis manages net assets of approximately $11.6 billion on behalf of OMERS through investments in a diversified portfolio of large‐scale infrastructure assets exhibiting stability and strong cash flows, in sectors including energy, transportation and social infrastructure. For more information about Teranet, visit www.teranet.ca.

Toronto Real Estate sales for 2015

Residential 
Toronto home sales were the second-best on record in December of 2015, with the Toronto Real Estate Board posting 4,945 sales. The year’s total sales were 101,299, which is a 9.2 increase over 2014.

The average price for a home in Toronto in 2015 was $622,217, which is up by 9.8 per cent compared to 2014, when the average price was $566,624.

Commercial

According to the Toronto Real Estate Board’s Commercial Network Members, there was a 6.1 million square foot increase in leased office, commercial and industrial space during the fourth quarter of 2015 compared to the same time in 2014, a 19.6 per cent increase.

The number of sales of commercial, office, industrial spaces decreased by 27 per cent in the fourth quarter of 2015 compared to the same time in 2014, for a total of 235 sales.

In mid-December, the government of Canada announced that it was increasing the required down payment amount for some home purchases beginning in February 2016

Homes priced above $500,000 will now require a down payment of 10 per cent instead of the previous 5 per cent. Homes priced below this amount still only need a 5 per cent down payment.

CMCH Fee Changing

The Canada Mortgage and Housing Corporation has announced it is changing the guarantee fees being charged to issuers and adjusting the annual limits for new guarantees. Both National Housing Act Mortgage-Backed Securities and Canada Mortgage Bonds are affected.

Real Estate Investment Trusts

Real Estate Investment Trusts (REITs) purchase real estate properties and pass the rental incomes through to investors.

Defined as a type of asset-backed security, they are also referred to as equitized income products or high-yield securities. The disparity in names highlights the controversy as to whether these securities are equities or fixed-income. They are most often compared to bonds because of the income they generate, but they do not have guaranteed payouts.

Income trusts react to changing interest rates, similar to fixed-income securities, but trade on an exchange, like equities.

Because they are backed by the specific revenue-generating properties or assets held in the trust, they face the same risks as common equities.

For income trust investors, the tax treatment will
be more like that of corporations – investors will be taxed on their distributions as though the distributions were dividends.
For investors, distributions from an income trust will now be taxed in the same way as dividends received from taxable Canadian corporations.

Real Estate Investment Trusts (REITs) consolidate the capital of a large number of investors to invest in and manage a diversified real estate portfolio. Investors participate by buying “units” in
the trust. REITs allow small investors to invest in commercial real estate previously available only to corporate or more affluent and sophisticated investors.

Canadian tax laws offer REITs significant tax deductions. For this reason, REITs pay out a high percentage of their income, typically 95%, to their unitholders.

REITs may be structured as either open-end or closed-end funds. If they meet the stringent standards set out under the Income Tax Act, REITs may qualify as registered investments for RRSPs and RRIFs.

REITs face many of the risks typical of real estate investments related to the quality of properties, rental markets, tenant leases, debt financing, natural disasters and liquidity. 

REIT managers generally minimize risk by avoiding real estate development and investing primarily in established income producing properties. 

To reduce the danger of incurring too much debt, most REITs limit the extent of leverage to 50% to 60%. Leverage ratios tend to be significantly higher in the real estate industry.

Liquidity is a major benefit of REIT ownership. REIT units are much more liquid than real estate. However, investors should determine the liquidity of any particular REIT before investing,
since some, especially the more specialized REITs, have thin trading volumes, despite being exchange traded. 

As publicly traded instruments, REITs are also subject to full disclosure rules giving the investor access to more complete information for decision-making purposes.

When interest rates rise, REIT trading values may fall. On the other hand, REITs represent a good hedge against inflation since, in an inflationary environment; the value of the underlying real estate owned by REITs may appreciate.

Because rental income is fairly stable, REITs generally yield high levels of income but usually lack the potential for large capital gains or losses possible with equities. As with any investment, it may be necessary to accept lower yields to ensure a high-quality portfolio underlying the yield.

Buying REITs gives investors access to professional management. REITs, however, are just as susceptible to ineptitude on the part of management as any other company. The keys to minimizing risk lie in sound research before purchase and in diversification.

How to Feng Shui for Your Workspace

What to Use:

1. A Plant
2. A desktop fountain or fishbowl
3. Blue Purple and red desk accessories
4. Black briefcase or laptop bag.
5. Photos
6. Desk Lamp

What to do:

1. Declutter your desk and work space
2. Repair and anything that is broken
3. Have a plant on your desk avoid cactus
4. Position the chair to see the door ( Meaning business and opportunity)
5. Position your chair so a solid wall is behind it.( further protect your back - chair have proper support)
6. Place a fishbowl or a desktop fountain on your desk ( activate flow of money and calm you down)
7.  Blue Purple and red desk accessories on your desk ( creativity)
8. Pictures on upper left corner of your desk
9. Keep your desk basket away from the desk or at the bottom left corner of the desk
10. Use good lighting 

Land Transfer for First Time Home Buyers in Toronto and Ontario outside Toronto

Did You Know?

First Time Home Buyers Pay less land transfer taxes.
In Toronto there is an additional Land Transfer tax that is paid also by First Time Home Buyers

Example for a property of 500,000

First Time Home Buyers
-in Toronto pay $6475
-In Ontario outside Toronto pay $4475

Ontario Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $250,000

1.5% - over $250,000

2.0% - over $400,000

Qualifying first time home buyers receive a $4000 credit from January 1 2017

Toronto Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $400,000

2.0% - over $400,000

First time buyers are exempt on the first $400,000 approx $3700 rebate

Land Transfer Ontario and Toronto

Did you know?

That if you purchase a property in Toronto you pay 2 taxes Ontario Tax and Toronto tax?

If you purchase a house outside Toronto you pay only Ontario Land Transfer Tax

Example
For a property of $500,000 you pay $12200 in taxes if the property is located in Toronto or $6475 if the property is located outside Toronto York Region for example.

Ontario Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $250,000

1.5% - over $250,000

2.0% - over $400,000

Qualifying first time home buyers receive a $4000 credit

Toronto Land Transfer Tax

0.5% - first $55,000

1.0% - between $55,000 - $400,000

2.0% - over $400,000

First time buyers are exempt on the first $400,000

How to Save for Down Payment for a House or Investment Property

The typical down payment for a home is generally 20 percent, but there are a variety of programs that can open the door to home ownership with as little as 5 percent.

Open A Savings Account

Open a savings account online or at the same bank or credit union where you now do your checking. The reason to use one institution is convenience: Most banks and credit unions allow you to transfer funds back and forth from accounts electronically and instantaneously. 

Start a Budget

The easy way to establish a budget is to use a spreadsheet — show your monthly gross income and then subtract taxes and other costs from your pay stub. This will give you your net income after taxes. Next, show what you pay for other monthly costs such as rent, student loans, car payments, and credit card bills. Subtract these costs from your net income.

In very short order you’ll be able to see how much you take in — and how much goes out. Now you can ask the magic question: Where can costs be cut?

Given that income and expenses are closely matched in many households, the only way to get ahead is to bring in more money or change your spending habits (meaning spend less) and avidly look for new savings sources.

Set a time to Review Your Spending and Savings

Set a time to review your spending and budget, say every Mondays of every week. 

• Prepare a budget and stick to it. Avoid spending on non-essential items and impulse purchases, as this type of spending delays your dream of owning your own home
• Put money towards your home deposit first. Open a separate bank account, ideally a high-earning savings account, and set-up an automatic transfer for every pay day, and make top-ups whenever possible
• Pay off your credit cards and any personal loans or hire purchase agreements. Reducing or eliminating these debts will help you increase your borrowing power
• Record and analyse your expenditure over a month to reveal opportunities for savings. Write down everything, including miscellaneous items, such as coffees, taxis, presents and meals out. ( reduce all non essentials spending)
• These everyday extras can add up over time. For instance, two takeaway coffees a day can cost up to $200 a month; money that could be put towards saving for a deposit for your first home
• Look around for deals, coupons.

 Look for cheaper ways to do things

This is how smart people save a lot of money. They make a lifestyle of finding cheaper ways to do things without diminishing their fun. Here are some great examples:

• Do you buy a lot of new books? Try the library. They have zillions of books that you can borrow for free.
• Do you go out to a lot of movies? Try renting or sticking with antenna. Some people are now even dropping their cable in favor of watching shows online. This works really well in the U.S., but it is getting better in Canada.
• Do you eat out a lot? Try eating out less or look for cheaper places to eat that you still like. You can also look for 2 for 1 coupons or buy an Entertainment Book and only eat at the places that have coupons (this will cut your eating out budget in half).
• Do you spend a lot of money on your hobbies? Try spending less or finding other hobbies that cost less—at least for a while.
• Do you buy a lot of new clothes? Try sticking with your current wardrobe for a little longer, or selectively buy clothing items that coordinate with what you already have. This will allow you to put together more outfits with fewer clothes. When you buy your clothes, look for sales.
• Do you take expensive vacations? Try something less expensive or closer to home.
• Do you buy a lot of new music? Try listening to the radio more, borrow music from the library or buy a card to monitor how much you download (and then you get what you actually want to listen to!).
• If you have a busy family, you can really save money if you eat at home more often (and this includes buying less snacks and drinks on the run), and look for fun things to do around your community that are free or don’t cost very much. If you go to the movies a lot, try renting. If you rent a lot, you could save even more by checking out the library. Many libraries have videos you can borrow for free. This option is really great for kids.

If you are able to work some of these changes into your lifestyle, you will definitely save money. However, the key to saving money is to resist the temptation to spend it on something else right away, and to start considering the cheaper alternatives.

Weekly Records of Your Money

Here is a little chart that you can use to keep track of your money

Date
Money You have	Amount	Debt	Amount
Saving Account		Viza
Cequing account		Credit Line
RRSP		Total	Total 2
Other currencies		Total General	Total 1-Total2
Investments
Cash		Equity in the house/investment
TOTAL	Total 1	Value of the house – Mortgage Principal