Being in a destination town, it is certainly evident how many people are taking advantage of the Toronto Real Estate Market and moving north with the housing boom. I recently found out there are 520 Real Estate Agents in the Collingwood Area……WOW! Lately, what you see the most of in the newspapers is advertising and listings of SOLD properties. The market is high and the listings are low.
Are You Happy Where You Live?
So you ask yourself, are we happy where we live? Should we take advantage of a “sellers market”? You can certainly sell high and in most cases there is money to be made, but then you will need to find a new home. There are a couple options to consider and perhaps a renovation or some simple improvements to your home is your best option. This will protect your investment and give you a much-needed upgrade.
Reporting Gains on Revenue
For the first time, Canadians who sold their homes in 2016 will have to report it to the Canada Revenue Agency, even though any gains remain tax-free if they’ve lived in the properties as long as they’ve owned them. This is simply to sift out those who are trying to avoid paying capital gains on their revenues.
Deciding What Kind of Upgrade is Best
Those who don’t report the sale of homes and have their tax returns amended may face penalties of up to $8,000. If your home was your principal residence for only part of the time you’ve owned it, a calculation is made to determine the portion that may be allowed under the primary residence exemption and what you’ll need to pay tax on. There were 536,118 homes sold in Canada last year through the Multiple Listing Service, according to the Canadian Real Estate Association. The best option with the housing market as it is right now is to build a unique custom home for your family.