Archive for June, 2009

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Renovation tax credit a hit with consumers
OTTAWA-A new poll suggests more than one in three Canadians plan to take advantage of the federal government’s home-renovation tax credit.More than eight in 10 questioned in the Harris-Decima/Canadian Press survey said they were aware of the program, under which eligible applicants can receive a tax rebate of as much as $1,350 if they invest up to $10,000 in renovations on their home.

“Unlike many new tax policies, which only get noticed by accountants and actuaries, the government of Canada has successfully communicated the introduction of the home-renovation tax credit to Canadians,” said Harris-Decima’s senior vice-president, Jeff Walker.

“This program appears to be helping stimulate the economy as well.”

Nationally, 82 per cent of respondents were aware of the home-renovation tax credit, while 17 per cent said they were unaware. Those under age 35 and those with annual incomes below $60,000 were least likely to know of the tax credit.

Overall, 35 per cent of respondents said they planned on taking advantage of the program, while 60 per cent said they would not.

The ratio of those who planned to take advantage of the program increased with income.

More than half of those earning more than $100,000 a year (51 per cent) responded positively, compared with 41 per cent of those making between $60,000 and $100,000 and just 27 per cent of those earning less than $60,000.

Respondents west of Ontario were the most likely to be taking advantage of it.

Some 1,000 Canadians were surveyed June 18-21, with a margin of error of plus or minus 3.1 percentage points, 19 times in 20.

Source: The Canadian Press

Additional Market Info:

- TSX +33.91(Reuters) as a late day burst in financial stocks cancelled out declines in oil and gold prices

- DOW -34.01 mainly lower after the commerce department said personal spending, incomes and savings all rose in May. What troubled investors was that the savings rate soared to a 15-year high of 6.9%, while spending rose by a modest 0.3%

- Dollar +.15c to 86.64USD    
-  Oil -$1.07 to $69.16US per barrel.
-  Gold +$1.50 to $941USD per ounce

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“Irresistible” rates drive Canada’s recovery

Ottawa’s Rob Carrick recently wrote an interesting article in the Globe and Mail. If you have a few minutes, take a look at what is considered a miraculous resurrection.

In the midst of recession, the average national price of Canadian resale homes hit a record level in May, and sales activity increased for the fourth consecutive month. While U.S. residential real estate prices have been falling for almost three years, Canada seems to have stumbled and picked itself up again in a span of 12 months.

To some real estate agents, the market looks as good as it did before the global financial crisis began to bite last summer.

“Without getting nitpicky, yes it does,” said Toronto real estate agent Laurin Jeffrey. “I just lost out on a multiple offer last night on a house, and my client asked me to have a look at what’s going on with that sort of a house. In that price range and style of home, 14 out of 19 sales in the past 30 days have been at or above the asking price.”

Read The full article here:
Globe & Mail

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