Real Talk!

Confident buyers are taking advantage of the great opportunities available. With historically low interest rates and a good supply of properties for sale, buyers are stimulating the spring market early this year.

There are some incentives, too. Under the Home Buyers Plan, first-time buyers can now withdraw up to a maximum of $25,000 from their RRSPs as a down payment and they may also qualify for a $750 tax credit to help pay for closing costs like appraisal fees or legal fees.

Both Buyers and Sellers may take advantage of some of the other programs currently being offered:

Home Renovation Tax Credit
The recent federal budget outlined a new tax credit that will provide assistance for homeowners to renovate their homes. From January 28, 2009 to February 10, 2010, Canadian homeowners can claim a 15%, non-refundable tax credit for eligible expenditures after a $1,000,00 minimum to an expenditure of $10,000 for a maximum credit of $1,350 ($9000 x 15%). This is in addition to the EcoEnergy retrofit program. Taxpayers can claim the HRTC when filing their 2009 tax return.

Example:
A property owner who replaces all windows in the house may spend $10,000.00 in 2009. After taking into account the $1,000 minimum threshold, a 15-per-cent credit will be available on $9,000 in eligible expenditures, providing a tax credit of $1,350.
The credit is subject to the principle residence only and one credit per household. Homeowners should save all receipts that qualify and claim them on their 2009 tax return.

Wondering what types of products, services and expenses are eligible?

Eligible
Renovating a kitchen, bathroom or basement
New carpet or hardwood floors
Building an addition, deck, fence or retaining wall
A new furnace or water heater
Painting the interior or exterior of a house
Laying new sod
Labour costs;
Professional fees;
Building materials;
Fixtures;
Equipment rentals; and Permits

Ineligible
Furniture and appliances (refrigerator, stove, couch);
Purchase of tools;
Carpet cleaning; and
Maintenance contracts (furnace cleaning, snow removal, lawn care, and swimming pool cleaning

Additional information on the Home Renovation Tax Credit will soon be available on Canada Revenue Agency's website at www.cra-arc.gc.ca
Information is also available at Department of Finance Canada at www.fin.gc.ca

Ontario Home Energy Savings Program

The Ontario Home Energy Savings Program is an energy conservation program from the Government of Ontario. A Home Energy Audit shows you how your home uses energy and where it is being leaked. It identifies improvements you can make to your home’s heating, cooling, hot water heating and other energy uses that could result in hundreds of dollars in energy savings each year. The Government of Ontario will pay 50% of your Home Energy Audit, up to $150.

The audit will explain your home's energy use — attic to basement. A typical audit involves the following steps:

A walk-through assessment of your home’s insulation, heating and cooling systems and other energy use.

A “blower door” depressurization test to identify leaks and drafts.

A personalized Energy Efficiency Evaluation Report.

Many of the energy-saving upgrades identified by your Home Energy Audit will qualify you for rebates under the Government of Canada's EcoENERGY Retrofit – Homes program. These rebates from the Governments of Ontario and Canada can reimburse you up to $10,000* when you complete improvements identified by your audit.

For more information see http://www.homeenergyontario.ca/

Home owners can apply for both programs - the Home Renovation Tax Credit AND the Home Energy Savings Program.

The Home Energy Rating Act, if passed by Ontario Government, will require anyone selling a house or low-rise building to disclose the results of a home-energy audit to prospective buyers. New homes will also come with energy ratings.

Home efficiency ratings will create a demand for new and resale homes that use less energy, ultimately increasing their property value compared with less-efficient homes and pressuring new home builders to go beyond minimum building code standards.
The requirement will apply to all newly built homes in 2010, followed in 2011 by detached, semi-detached and multi-unit residential resale buildings. In 2012, those leasing buildings will also have to supply the ratings.

Help for Homeowners

The Government of Ontario will pay 50% of your home energy audit - up to $150.00. The audit will review your home's energy use from basement to attic. The resulting report will indicate areas for improvement to your home's heating, cooling, hot water heating, and other energy uses that can be improved.

Those owners obtaining a rating from an approved EcoEnergy advisor can obtain grants to improve their home and its resale value. The Governments of Ontario and Canada will help pay for the retrofit your home needs, up to $10,000.00, provided you complete the projects within 18 months from the date of your audit. Visit the Home Energy Savings website http://www.homeenergyontario.ca
Energy ratings will create demand for more efficient homes.

Here are some other sites that may be of interest:

· Conservation Bureau of the Ontario Power Authority
this is the conservation division of the OPA. Look here for commercial, industrial and residential programs and funding. http://www.powerauthority.on.ca

· Energy Star®
ENERGY STAR® is the international symbol of energy efficiency. It’s a simple way for consumers to identify products that are among the most energy-efficient on the market.
http://www.oee.nrcan.gc.ca/energystar/index.html

· Every Kilowatt Counts
Information about programs, services and actions you can take to achieve greater efficiency in your home and business. The benefits of energy efficiency.
http://www.everykilowattcounts.ca

Go Green Ontario
This Government of Ontario site is a place where you can find out more about climate change and what we all can do to help.
http://www.gogreen.com

· Ministry of Finance
Click to get information about the Retail Sales Tax Rebate for Solar Energy Systems. http://www.rev.gov.on.ca/

· PowerWISE
you’ll find tips and tools — and a whole community of people taking action — on this website.
http://www.powerWISE.ca

20/20 The Way to Clean Air
This site provides resources to help reduce home energy use and vehicle use by 20 per cent. http://www.toronto.ca/health/2020/

How to Buy a Green Home

Buying a home can be a great opportunity to reduce your ecological footprint.

Looking beyond the décor, consider the location, size and style of your house and take advantage of government grants for home energy audits for a resale home.

If available, you may wish to consider a new EnergyStar home.

Find a Green Realtor
Find a Realtor with good knowledge of environmental issues and programs and services available to assist homeowners to reduce energy.

Conduct an energy audit
The Home Energy audit is such a new concept that most resale homes will not be energy rated. & Again, if you are considering a new home purchase, and if it’s available, consider an Energy Star certified home.

Location is Imperative
Consider how close the house is to shops, school, Church, entertainment, workplace and other amenities that you often utilize. Think in relation to all members of the household. Choose your location very carefully.

Size Matters
Although large houses are still popular, the trend will be for smaller homes and more efficient floor plans with no space wasted. The smaller the home, the less energy needed for heat and light and the less you money spent on utilities.

Expect to Upgrade
Once you have found the home you want, go ahead with a professional energy audit and expect to upgrade and implement some of the suggested changes. Re-decorate with low-VOC paint, upgrade the air system, remove old carpet and replace with wood floor. Renovate according to your ecological principles. The Canadian government will pay 50% (up to $150.00 max) towards the audit and provide grants towards certain upgrades. Visit the Home Energy Savings website http://www.homeenergyontario.ca
Remember: Anything upgraded will add value to your investment and create a greener, healthier home.

Research your renewable-energy potential
Another new trend - depending on where you live there is an exciting possibility of generating some or all of your own electricity with rooftop solar panels or a backyard wind-turbine. The costs of solar, wind, and geo-thermal power are falling and becoming easier to find. This may not be attainable immediately in your area so keep an ear to the ground for news to come.

The Yard
Just as smaller houses are becoming popular, so too are smaller yards. Less lawn means less water. A small space for a garden is ideal to grow some of your own fruits, vegetables and herbs. Some vegetables may be grown in containers- so yards needn’t be acres to produce enough for an average household. Also, consider a space for compost pile or bin, if you don’t need to worry about wildlife. & look for shady trees to help conserve energy in hot weather.

As my friend Greg says, "May we all learn to walk more gently upon Mother Earth."