Real Estate

Ottawa and Surrounding Area Real Estate market discussion

  • Last Updated:
  • Mar 1st, 2021 10:40 pm
[OP]
Deal Addict
Nov 26, 2004
2885 posts
1293 upvotes
Interesting read.
https://ottawacitizen.com/news/local-ne ... -expansion

What pops from the article for me is the following:
A project called Tewin is included as an option for a new community. It’s a land-development partnership between the Algonquins of Ontario and Taggart Investments looking to transform a swath of land southwest of Highway 417 and Boundary Road.
Looks like the "next" community will be at Carlsbad Spring near the Amazon warehouse if this get approved. Which sort of make sense as it is 20 minutes away from Ottawa and it is an underutilized section of the 417 that rarely has any congestion.
The Gold Belt would effectively create “ultimate boundaries” for Barrhaven, Riverside South, Stittsville and Orléans, limiting new urban expansion between the Greenbelt and the Gold Belt.

“The intent of the inner boundary of the Gold Belt in the new official plan would be to contain, until the end of the century, all future urban expansions and any new communities,” the report said.
And if they do draw this gold belt, it will ultimately determine where the urban sprawl would end.
Jr. Member
Apr 10, 2012
109 posts
50 upvotes
NEPEAN
Wonder what would happen if we have the gold belt? Does that mean city similar to Mississauga, Brampton, etc. will pop up overtime?
Deal Guru
User avatar
Jun 28, 2003
10341 posts
3402 upvotes
Ottawa
welcomelm wrote: Precon TH in Smith Falls is only 369k, if you are cash flow concerned, it might be a good choice. I remember their phase one price is around 332k. But when I got to it, phase one was already sold out. So obviously, it appreciates really nice.

https://parkviewhomes.info/townhomes-fo ... celist.pdf
A Parkview pre-con in Smith Falls popped up on Kijiji yesterday. $2K/month for rent with partial utilities covered so on par with Carleton Place and Ottawa towns, to a certain extent.

https://www.kijiji.ca/v-apartments-cond ... 1546331804
Sr. Member
May 6, 2012
506 posts
308 upvotes
KANATA
canabiz wrote: A Parkview pre-con in Smith Falls popped up on Kijiji yesterday. $2K/month for rent with partial utilities covered so on par with Carleton Place and Ottawa towns, to a certain extent.

https://www.kijiji.ca/v-apartments-cond ... 1546331804
This sort of makes sensor. In states, even 100k house can fetch about 1200 per month. On the other hand, those cheap houses in small town that are far away from any where normally appreciate much slower.

I took a look at a few duplexes in Smith Fall in 2015. Now it seems they are still pretty much in the same price range as 2015 while Ottawa is almost doubled.
Member
Nov 1, 2020
355 posts
179 upvotes
hey guys, can some one help my situation regarding to my mortgage application? My mortgage broker's answer is not quite solid as he kept saying the closing date is far...
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My base salary is 100k and 10% bonus.

year 2019, I earned 100k+10k bonus (based on 2018 performance)
Last year 2020, I took parental leave got benefit 60k + 10k bonus (based on 2019 performance)
This year 2021, I go back to work this year partially, say expecting salary 90k + 0k bonus (as no performance last year)

I have pre con to close at the end of this year (I will have formal job letter indicates my 100k salary by then). Will my situation be messed up due to the parental leave thing?
will i get my mortage based on my income of 100k+10k? or 100k? or 60k+10k?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TIA
Newbie
Feb 10, 2020
43 posts
38 upvotes
MikeMOON2 wrote: hey guys, can some one help my situation regarding to my mortgage application? My mortgage broker's answer is not quite solid as he kept saying the closing date is far...
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
My base salary is 100k and 10% bonus.

year 2019, I earned 100k+10k bonus (based on 2018 performance)
Last year 2020, I took parental leave got benefit 60k + 10k bonus (based on 2019 performance)
This year 2021, I go back to work this year partially, say expecting salary 90k + 0k bonus (as no performance last year)

I have pre con to close at the end of this year (I will have formal job letter indicates my 100k salary by then). Will my situation be messed up due to the parental leave thing?
will i get my mortage based on my income of 100k+10k? or 100k? or 60k+10k?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TIA
Usually in this circumstance they would/should ask for previous years T4 slip to verify your income
Member
Nov 1, 2020
355 posts
179 upvotes
splatqa wrote: Usually in this circumstance they would/should ask for previous years T4 slip to verify your income
Ask for my t4 for 2017-2019 to verify i can be qualify by 100k+10k? Apparently my t4 in 2020 and 2021 will not look good: (
Newbie
Sep 19, 2020
17 posts
4 upvotes
Hi,
Is there any advantage of buying a rental property along with spouse (adding spouse name to the agreement) when spouse has no income. Wondering if it has any benefits in reducing capital gain taxes in future when selling. I know its more an accountant question, but wanted to know if any one has an insight on this.
Thanks
Sr. Member
May 6, 2012
506 posts
308 upvotes
KANATA
telpabbu wrote: Hi,
Is there any advantage of buying a rental property along with spouse (adding spouse name to the agreement) when spouse has no income. Wondering if it has any benefits in reducing capital gain taxes in future when selling. I know its more an accountant question, but wanted to know if any one has an insight on this.
Thanks
I am not an accountant. But my understanding is if you and your spouse share 50/50 owner ship. You each take 50% of rental income or capital gain to claim tax. If you share the owner ship by tenant in common, you can even specify the owner ship percentage. Putting more percentage on the lower income spouse can save you more tax.
Member
Sep 29, 2013
274 posts
151 upvotes
MikeMOON2 wrote: Ask for my t4 for 2017-2019 to verify i can be qualify by 100k+10k? Apparently my t4 in 2020 and 2021 will not look good: (
With a letter in hand and current paystub, it shouldnt be a problem. Without a letter, they would average your last 2 t4s.
Member
Sep 29, 2013
274 posts
151 upvotes
welcomelm wrote: I am not an accountant. But my understanding is if you and your spouse share 50/50 owner ship. You each take 50% of rental income or capital gain to claim tax. If you share the owner ship by tenant in common, you can even specify the owner ship percentage. Putting more percentage on the lower income spouse can save you more tax.
You are correct. The tax burden will be split according to the %.
Newbie
Sep 19, 2020
17 posts
4 upvotes
welcomelm wrote: I am not an accountant. But my understanding is if you and your spouse share 50/50 owner ship. You each take 50% of rental income or capital gain to claim tax. If you share the owner ship by tenant in common, you can even specify the owner ship percentage. Putting more percentage on the lower income spouse can save you more tax.
Thanks for your input
Deal Addict
Jan 15, 2017
3751 posts
3157 upvotes
MikeMOON2 wrote: hey guys, can some one help my situation regarding to my mortgage application? My mortgage broker's answer is not quite solid as he kept saying the closing date is far...
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
My base salary is 100k and 10% bonus.

year 2019, I earned 100k+10k bonus (based on 2018 performance)
Last year 2020, I took parental leave got benefit 60k + 10k bonus (based on 2019 performance)
This year 2021, I go back to work this year partially, say expecting salary 90k + 0k bonus (as no performance last year)

I have pre con to close at the end of this year (I will have formal job letter indicates my 100k salary by then). Will my situation be messed up due to the parental leave thing?
will i get my mortage based on my income of 100k+10k? or 100k? or 60k+10k?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TIA
As you have a closing at the end of this year, you will have filed income taxes for 2019 and 2020.

If you want to include your bonus in your salary calculations, the general procedure is that as a bonus isn't guaranteed, the lender will request your Notice of Assessment for the previous 2 years and take the average of these years as your salary. In your case, you had total income of $110k in 2019 and $70k in 2020 with was result in an average annual salary of $90k.

Your expected salary for 2021 will also be $90k.

So, for qualification purposes, if you can produce an employment verification letter stating that you earn a base annual salary of $100k plus potential for bonus pay, it would be better to use this as then your mortgage qualification can be based on an $100k base salary.

Now the other question is whether or not your mortgage broker will do this.
Sr. Member
Nov 10, 2014
528 posts
883 upvotes
Ottawa, ON
Now that townhomes are regularly fetching 600k+ and some nice ones are going for 700k, I wonder how long it will be until we see the first one to sell in the 800s. I think the market is reaching a point where any freehold is considered "luxury", like it is in TO and Van.
Deal Addict
May 23, 2017
1241 posts
1113 upvotes
welcomelm wrote: Putting more percentage on the lower income spouse can save you more tax.
Aren't there attribution rules that would prevent this though? So technically if one spouse had no income they likely don't contribute anything to the downpayment, so it would probably be more accurate for them to claim 0%. But I think in practice CRA wouldn't mind if it is split 50/50.

I think if you try to attribute more than 50% to the spouse with no income though to reduce taxes, CRA may not like that...you had better be able to prove without a doubt that the spouse with no income contributed most of the downpayment.

I am also not an accountant though, this was just my impression. (An article about it here: https://www.moneysense.ca/columns/ask-m ... -3-owners/) But if it's possible, I am definitely curious to hear about ways other people have used to reduce taxes though! ;)
Sr. Member
May 6, 2012
506 posts
308 upvotes
KANATA
jk9088 wrote: Aren't there attribution rules that would prevent this though? So technically if one spouse had no income they likely don't contribute anything to the downpayment, so it would probably be more accurate for them to claim 0%. But I think in practice CRA wouldn't mind if it is split 50/50.

I think if you try to attribute more than 50% to the spouse with no income though to reduce taxes, CRA may not like that...you had better be able to prove without a doubt that the spouse with no income contributed most of the downpayment.

I am also not an accountant though, this was just my impression. (An article about it here: https://www.moneysense.ca/columns/ask-m ... -3-owners/) But if it's possible, I am definitely curious to hear about ways other people have used to reduce taxes though! ;)
I am not sure either about relationship between ownership percentage and interest claim percentage. One thing I do know is you can definitely assign 99% to anyone in "tenant in common" ownership and bank doesn't really care which one takes how much percentage as long as person with enough income is in title.
Deal Addict
May 23, 2017
1241 posts
1113 upvotes
welcomelm wrote: I am not sure either about relationship between ownership percentage and interest claim percentage. One thing I do know is you can definitely assign 99% to anyone in "tenant in common" ownership and bank doesn't really care which one takes how much percentage as long as person with enough income is in title.
I don't doubt the the bank doesn't care, I'm more worried about getting in trouble with CRA though...
MikeMOON2 wrote: hey guys, can some one help my situation regarding to my mortgage application? My mortgage broker's answer is not quite solid as he kept saying the closing date is far...
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
My base salary is 100k and 10% bonus.

year 2019, I earned 100k+10k bonus (based on 2018 performance)
Last year 2020, I took parental leave got benefit 60k + 10k bonus (based on 2019 performance)
This year 2021, I go back to work this year partially, say expecting salary 90k + 0k bonus (as no performance last year)

I have pre con to close at the end of this year (I will have formal job letter indicates my 100k salary by then). Will my situation be messed up due to the parental leave thing?
will i get my mortage based on my income of 100k+10k? or 100k? or 60k+10k?
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

TIA
I was told by my bank (NBC) that they just need to see a letter from my employer stating my usual salary and when I would be returning to work, and they will qualify me based on my usual salary instead of reduced income during parental leave.

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