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< 12 The Canadian Statesman, Bowmanville, Wednesday, September 28.1994 r Real Estate Deadlines and Policies Deadline for Wednesday Publication is Monday at 12:00 Noon. Any compensation for errors or omissions by ThcCanadian Statesman will be limited to the value of the space occupied by the error in the advertisement. ^ Please phone 623-3303 and ask for the Real Estate Sales Department ^ Taxpayers Must Determine Value of Real Estate for Capital Gains Canadians who own real estate ; other than their principal residences ; may have less time than they think to • prepare for the one-time capital gains j election for the 1994 taxation year. In the federal government budget released released last February, any capital • gains accrued on property or other in- ; vestments may be "crystallized" at • the value as of February 22, 1994, to ; a maximum of $100,000. Tax payers must file an "election" \ with their 1994 tax return, due next spring. For many Ontario property own- : ers, the capital gains election requires ; a careful look at any real estate in- • vestments such as cottages or recrea- | tional properties, or investment prop- , cities. It is more difficult to ' determine the value of real estate - than for stocks, for example; the sell- ' ing price of stocks is published in 1 stock reports daily. Real estate appraisers who have a designation from the Appraisal Institute Institute of Canada have been trained and are experienced in the valuation of real property. Advice from an Accountant Who needs an appraisal? The first step, say taxation experts, is to assess whether you need to make the capital gains election or not. Dan Warren, a taxation specialist with the Ottawa accounting firm Paterson Hendry, says the practical approach is to "look at how much of an exemption you have left. To do this, you'll want to check back on your tax forms for past years, or check with your accountant." accountant." Next, says Warren, owners of second second properties will need to establish a very general idea of the value of the property, and how much capital gain they have. Revenue Canada requires an opinion on the current value. Real Estate with Betty Smith MULTIPLE OFFERS When the demand for housing outstrips the available supply of homes for sale, it's not unusual for a homeowner to receive more than one Offer to Purchase on his home at the same time. We haven't seen this type of market for a few years now, but occasionally we are still faced with multiple offer situations. As a vendor, handling multiple offers can be very complicated and you need to rely heavily on your Listing Agent to guide you through the sometimes intricate process involved in order to eventually accept the most suitable offer. This is especially true when both offers arc very similar in price and terms. When this situation arises, all parties should be advised well in advance (Vendors, Purchasers, Listing and Selling Agents). Naturally, as a Vendor, you will want to see all offers and certain procedures must be followed by us, as Realtors, to insure that you do. As a Purchaser, faced with the knowledge that there are one or more offers "competing" with yours, you may be well advised to submit your very "best" offer rather than losing the property to another buyer. Keep in mind, that in multiple offer situations, you rarely, if ever, get the opportunity to negotiate back and forth with the Vendor. When you're thinking of buying or selling your home, your most valuable possession, entrust a trained Real Estate professional to assist you. Negotiating offers is just one of the many valuable services that we have to offer to both Vendors and Purchasers. Your comments and questions are always of interest to me and I would welcome the opportunity to serve you. I can be reached at Family Realty 2000 Ltd., Bowmanville, 623-2000. g Some properties may be unique or have unusual features that can complicate complicate the valuation process, however. however. The value, and how it was arrived at, may be questioned by Revenue Canada. "The election is anywhere between between the cost of acquisition and fair market value," Warren explains. "If there arc any factors that raise concerns concerns about the value, or the cost, then an appraisal by a professional real estate appraiser may be required. There arc many people who have a cottage in the $100,000 to $150,000 range where the capital gain is close to the election limit. In a situation like that, an appraisal can be very important." important." Consult with a Professional Hamilton real estate appraiser Patricia Patricia Budd, AACI, says that appraisers appraisers arc more than willing to act as consultants to indicate to taxpayers what the general value of investment properties might be, and thus save them the cost of having a full appraisal appraisal done. "If someone has a cottage that cost $50,000 and is now worth in the area of $300,000, then you wouldn't really need a full appraisal," appraisal," Budd advises. "We'd be happy to tell you that." Capital gains valuations tend to be much more complex than ordinary appraisals done for mortgages, say appraisers. Bill Cosset, AACI, Kelowna, Kelowna, BC, says "Appraisers must do much more research and time- consuming analysis for this type of report." What further complicates the valuation valuation of recreational properties is the fact that in today's market, fewer cottages cottages are being sold than several years ago, which can make establishing establishing comparable sales information difficult. difficult. Many second properties such as Ontario cottages also tend to be somewhat unique. "We have everything everything in cottage country," says Orillia-based Orillia-based Wayne Scanlon, CRA. "You have cottages built from kits, cottages that have been inherited and added on to over the years, and cottages cottages that have been professionally built." The result is a wide variation in values, even among cottages in the same location. "We look at the location, location, the quality of constmction and other factors such as the amount of waterfront, the septic system and other other factors," Scanlon explains. "You can have one cottage that might be worth $200,000 but a half a mile away, a similar cottage might be worth only $85,000." Tax accountant Dan Warren says the decision to make the capital gains election for real estate assets depends on a close look at each property owner's owner's situation, and then determining what the tax cost is if he or she does nothing. "It may be," says Warren, "as simple as asking, would I spend $100 now to save $1000 in the future?" future?" Appraisers who specialize in cottage cottage valuations advise owners to book their appraisals soon. With the coming of winter months, many properties become inaccessible until past the due date for tax returns. To save costs, many appraisers also advise advise cottage owners to work in groups or through their cottage associations. associations. Economies can be achieved when appraisers can work on a number number of properties in a location at once. Properly owners who decide they need a property appraisal from a professional professional real estate appraiser may choose a member of the Appraisal Institute Institute of Canada by asking for an appraiser appraiser with the AACI or CRA professional professional designations. PITCH-IN CANADA! Over 30 Years Quality Real Estate Service 234 King Street East, Bowmanville Telephone 623-3393 Toronto Line 686-1035 sunuay, iris Fowler* OCTOBER 2,1994, 2-4 p.m. 623-3393 18 BANK ST, MILLBROOK Detached 3 bedroom home with 4th down. Separate dining room, walkout from rec room. Well decorated and squeaky clean! Gas heat. Only $124,900. Large lot. Iris Fowler* will be there to greet you. 623-3393 or 705-932-2621. Charlie Reid* CUSTOM BUILT BEAUTY 623-3393 Completely finished. Hardwood floor, oak kitchen. Interlocking brick, double car garage. This is one of the finest built homes in the area. Come see it. $179,900. Call Charlie Reid* 623-3393 or 983-5914. EXPERTS AGREE - BUY NOW John Shewchuk* 623-3393 QUALITY KING ST. LOCATION Up to 4200 sq. ft. only $6.50 sq. ft. Ideal for class room, public administration,, computer school, social club. Excellent parking and visibility. Call John Shewchuk* 623-3393 or 623-5927. RUSTIC RETREAT Extremely private on 26 acres with older 3 bedroom home. Needs Work! Barn tucked away in the Kendal Hills. JUST LISTED $161,000. By appt. only. @ Call Ann Van Dyk* 623-3393 or 623-4638. Prime commercial building, busy King Street Core, Bowmanville. Six modern apartments and over 3000 sq. ft. commercial ground floor. Good for Investor or User. Call John Shewchuk* to Inspect, 623-3393 or 623-5927. REACH FOR THE GOLD - $74,900. Ideal for custom home builder. 1.3 acre estate lot. Just 2 minutes to Central Bowmanville. Excellent area, prime value. Never cheaper. Call John Shewchuk* 623-3393 or 623-5927. Housing Starts Decline 3.1% During August National housing starts fell 3.1 percent in August to 148,600 units at a seasonally adjusted annual rate (SAAR)*, reported Canada Mortgage and Housing Corporation. The July starts level was 153,400 units SAAR. In urban centres, starts of single- detached dwellings were down 11 percent in August to 65,300 units SAAR, compared with 73,400 units • in July. Multiple unit construction moved up 6 percent to 58,300 units SAAR, from a level of 55,000 units . in the previous months. "The drop in August activity, on the heels of a decline in July, was a reversal of the run-up from March through June. Most of it was due to single-detached • unit construction which is quite sensitive to mortgage interest rates," said Gilles Proulx, Chief Economist for CMHC's Mar- . ket Analysis Centre. "In contrast to the national trend, . starts seemed to have rebounded in 1 the larger metropolitan areas, Toronto, Toronto, Montreal, and Vancouver. The / combined level of starts rose 15 percent percent in those three major centres, reflecting, reflecting, in part, an improved job market," Proulx added. Ontario urban starts stayed close to last month's level, 40,800 units SAAR in August compared to 40,900 in July. Increased construction of multiple units nearly offset reduced singlc-dctachcd activity. Meanwhile, activity in the Toronto metropolitan area reached its highest level in two years. Quebec urban starts fell to 27,200 from a level of 28,800 units SAAR in July, a third consecutive decline. The drop was concentrated in single- detached dwellings while construction construction of multiple dwellings was up slightly. British Columbia urban starts inched up to 34,200 from 34,000 units SAAR in July. All of the gains reflected greater construction in the multiple-unit dwellings. The condominium condominium market in particular continued continued strong. In contrast, singlc- dctachcd starts activity retreated. Activity in the Prairies, which was down across all three provinces, fell to 14,700 units SAAR in August from 18,100 in July mainly because of much lower single-detached starts. In the Atlantic region, starts activity activity rose slightly, reaching 6,700 units SAAR in August. Newfoundland stood out as the only province to register register greater activity. Total urban starts in the province doubled to 1,600 units SAAR in August from 800 in July. Activity dropped in Nova Scotia, Prince Edward Island and to a greater extent, New Bmns- wick. * The SAAR is a monthly figure that is adjusted to remove normal seasonal variation and multiplied by 12 to reflect annual levels, FAMILY REALTY 4 21 Pineridge Trail Miimvsi Not exactly as shown. LOVELY BACK YARD Brightly renovated 3 bedroom home in Hampton. Excellent starter at $127,900. Call Ann Simpson. 213 Wilmot Trail Edna Hamel Sales Rep. Ann Simpson Sales Rep. QUIET & SECLUDED 25 acres on dead-end road. 2 barns, driveshed, double detached garage, 3 bedroom farm house in need of repair. Asking $114,900. § i w lKJ©sptiE'OQ Alf Annis Broker/Owncr Charming bungalow on large lot. Shows Great! Call Alf for details. Remi Court, Newcastle REDUCED TO $149,900 Quiet, residential court, huge pie-shaped lot, quality built, very A upgraded, finished on 3 ^ floors, 3 bedrooms, 3 baths. Betty Smith Sties Repnsuttativc $ ïi CoiraSn[?v DU ©erg North end, on large lot. Call Alf for more details. FAMILY REALTY 2000 LTD. Decrpark (1res., Bowmanville $139,901 Spacious, 3 plus 1 bedroom, on large lot with very private yard, access for motor home, boat, etc. Nice family room with wood stove, upgraded kitchen and bath. k For more information, call Hetty Smith, r A*Mrfvv.>X u u Broker/Owner FAMILY REALTY .. . (1, EVALUATION CERTIFICATE This certificate entitles a residential property ownor to one market evaluation by a Family Realty 2000 Ltd. Ropresontativo. This service to be performed without cost or obligation to the owner. Return this valuable certificate or call for an appointment at: 623-2000 Bob Craig Sill*» Rep. Janet Mulder Rep. ■ WOW! $126.500 3 bedroom backsplit home with eat-in kitchen and separate dining room. Finished recreation room with woods love. All of this on a great, mature lot. Taxes only $ 1,850.00. Nick Zondervan Sales Rep. EDÏ0 $117,90© Upgraded 3 bedroom semi, attached carport, detached workshop, finished finished rec. room. Shows well! k Call Nick for an appointment, y *'•1.7 Acre lot, treed, spring on property. ■ "Cute 2 bedroom, family room, new oak kitchen. IRWIN ES., ©IM3 - $104,900 Beautiful custom rancher, 1/3 acre lot, rural subdivision on edge of town. 3+1 bdrm., m/f laundry, huge gourmet oak ^kitchen, professionally finished lower ^ level! To view call Nick Zondervan. ■ * 3 bedroom home, barn and 40' dog run, large lot. Carol Hallman Sales Rep. 4 bedrooms, new addition, full basement, garage. 3 bedrooms, gas fireplace, loads of upgrades, nearly new.