Tuesday, July 24, 2018

UPDATE Short Term Rentals Toronto

As short-term rentals have become prolific worldwide, most governmental authorities have realized that the sharing economy is here to stay, and that regulating short-term rentals makes more sense than trying to ban them outright.

In late December, 2017 and early January, 2018, the City of Toronto (the “City”) adopted regulations regarding the licensing, registration, and regulation of short-term rental companies and operators (i.e. hosts).

Those regulations permit short-term rentals (rentals that are less than 28 consecutive days) only in the principal residence of owners and tenants. If less than the entire principal residence is being rented on a short-term basis, no more than three bedrooms may be rented on a short-term basis. Hosts are deemed to have only one principal residence at any one time.

The regulations also require hosts to register with the City and pay an annual registration fee of $50.  Short-term rental companies must be licensed and pay a one-time licence fee of $5000 and a fee of $1 for each night booked through the company.

The City also implemented a 4% Municipal Accommodation Tax (”MAT”) which applies to short-term rental companies and hosts.

The City’s zoning by-law amendment which permits short-term rentals as a use has been appealed to the Ontario Municipal Board (“OMB”).  For that reason, the short-term rental regulations and the MAT will not come into force pending the appeal. The appeal is scheduled to be heard on August 30 and 31, 2018. The City does not expect a decision from the OMB for at least 8 weeks after the hearing.

If the OMB supports the city’s zoning by-law amendment, the short-term rental regulations and the MAT will come into force some time after the OMB decision. Enough time will be given to enable short-term rental companies and hosts to submit applications for licences/registration. Details about the collection and remittance of the MAT will also be made available at that time.

Condo buildings are also imposing their own versions of minimum rental periods.

Monday, July 23, 2018

Create Your own RRSP

For those who don’t know, yes, you can put a mortgage on your house (or your cottage or rental property) inside your RRSP. That way you actually make payments to yourself, instead of the banking oligarchs. 
Now that interest and mortgage rates are on the rise, there’s more appeal to doing it. Up to this point, with sub-3% home loans available everywhere, it made more sense to float your house with cheap bank cash and use your own retirement funds to achieve much higher returns inside a financial portfolio. However, with posted mortgage rates nudging the 4% mark, an RRSP mortgage may be a way to finance a property as well as invest money.
So how does it work?
Not simple, nor cheap, nor easy set up and maintain, but possibly worth the effort.
First, find a lender willing to host what’s officially called a non-arm’s length mortgage. The best bet will be one of those less-than-blue-chip guys like B2B Bank or Canadian Western Trust, because the last thing the Big Six want is for people to create their own borrowings. Second, you need money in your self-directed RRSP to use to finance the house. 
Then there’s the set-up. That will involve having the property appraised for mortgage purposes, staying within established LTV (loan-to-value) parameters, paying your lawyer to draft the mortgage and funding the administrating bank. This will cost a few thousand. The big expense comes with mortgage insurance which is required by law. The cost will be up to 4% of the face value of the mortgage, which is (obviously) a lot. But no getting around this.
It’s important to understand the mortgage you’re creating isn’t something you can diddle with, even though you’re both borrower and lender. For starters, it must be a reasonable amount – so no 0%-down. Also you can’t grant yourself a 1% mortgage rate. In fact, you can’t even use the rate your bank is offering everybody else – it must be the posted one, devoid of any discount. However, since the interest you pay is to yourself, this isn’t necessarily a bad thing.
You can’t miss, skip or ignore payments. If you do, your RRSP can actually foreclose on your house (as strange as that sounds) through the trustee which administers it. Payments can’t be late, nor can you decide to pay yourself more or less in a single month. In fact, the mortgage can’t even be paid out early without incurring the same penalty as would be collected by an evil commercial lender.
On the plus side, all these mortgage payments you make into your RRSP aren’t considered contributions and don’t affect your ability to generate more space through earned income. The cash paid into the retirement plan accumulates, of course, and can used to buy other assets, achieving greater diversification.
As mentioned, this strategy can finance a house, your ridiculous money-losing rental condo or a commercial property. In fact, a non-residential use is probably the best. That way not only do you pay mortgage interest into your own retirement plan, but you can deduct that same interest from taxable income. And since commercial loan rates are w-a-y higher than residential ones, this is a big win. Take that, Bill & Justin.
Now that sounds like a plan;
Let's recap 
A. you have a well funded RRSP, and you have to move some or all of it out of mutual funds and into cash which becomes the principal of the loan. B. you pay mortgage payments back to your RRSP. C. the officiating bank gets a cut of the payments?? D. Once the payments are made back to your RRSP you can continue to invest them as per normal.


Thursday, July 5, 2018

Friends of Humber Bay Shore Business Directory

Business Quick Links now pinned (see comment for details))
Bird’s & Beans https://birdsandbeans.ca/
Cocoa Boulangerie http://www.cafecocoaboulangerie.ca/
Eden Trattoria http://www.edentrattoria.com/
Everest Hakka House (Chinese cuisine) http://tinyurl.com/zcj4jb4
FBI Pizza http://fbipizza.com/locations.php
Firkin on the Bay http://www.firkinpubs.com/firkinonthebay/
Krazy Roll http://www.krazyroll.com/
Lolas' Gelato http://www.lolasgelato.ca/
Mamma Fortino’s http://www.mammamartinos.ca
Mandarin Etobicoke https://mandarinrestaurant.com/queensway/ Oro di Napoli (pizzeria) http://www.pizzeriaorodinapoli.ca/
Oro di Napoli (pizzeria) http://www.pizzeriaorodinapoli.ca/
Rocco Restaurant & Bar http://www.roccorestaurant.ca/
Williams Catering http://www.thewilliamscateringco.com/
Alive Yoga http://www.aliveyogato.com/
Amoena at Solace https://www.facebook.com/AmoenaAtSolace/ Citrus Medical Centre http://www.citrusmedical.ca/
Dentistry by the Lake http://www.dentistrybythelake.ca/
Fitness on the Go (personal training) http://fitnessonthego.ca/ Humber Bay Eye Care http://humberbayeyecare.com/
Humber Bay Physio http://humberbayphysio.ca/
Kingsway Health By-The-Lake http://kingswayhealth.ca/ Mimico Creek Dental https://mimicocreekdental.com/
Orangetheory Fitness https://www.facebook.com/OTFParklawn/
Tai Chi and Qi Gong with Robert http://tinyurl.com/jxbs5l3
Tamara Solace https://www.facebook.com/SolaceIsComfort/
SALONS (Hair & Beauty)
All In One Beauty Lounge http://www.allinonebeautylounge.com/
Brow Boutique https://www.browboutiqueandhair.com/
Distinguished Gents Barbershop http://tinyurl.com/zjzbs4l
Extasis Extensions (lashes & brows) http://tinyurl.com/zlfh8sc
Onyx Salon & Spa http://www.onyxsalontoronto.com/about
Radiance Spa http://www.raydiancelakeshore.com/
Sarah Suchlandt https://www.facebook.com/SarahNicoleBeauty/
PETS (Walking. Grooming, Supplies etc.)
Humber Bay Dog Walking https://www.humberbayshoresdogwalking.com/Humber Bay Veterinary Hospital http://humberbayvethospital.ca/
Ma N’ Paws (dog walking) http://tinyurl.com/jlezzja
Pet Pointe Pet Store http://www.petpointe.ca/
Play n Stay (dog boarding) http://tinyurl.com/zydskx7
Suzette Castro (Fine Art-Portraits) http://tinyurl.com/jyk82en
eMacity Leads marketing (Chris Moakler) https://www.emacityleads.com/
Etobicoke Yacht Club (junior sail) http://tinyurl.com/z6xqynd
Frank Horvat (pianno lessons) http://frankhorvat.com/education/ Golden Eagle Basket Club http://www.goldeneaglesbasketball.ca/ Humber Bay Boat Adventures http://tinyurl.com/zacwrc8
Ivanka Ljubicic Drafting & Design http://tinyurl.com/kkqo6hu
Marko Djukic (lawyer serving S. Etobicoke) www.dukelawfirm.ca
Mary Bella (web design) http://maestrawebdesign.com/
Mimico Cruising Club http://www.mimicocruisingclub.com/
Page One Marketing (Wayne Preston) https://www.pageonemarketers.com/
Randy Barba photographer https://www.facebook.com/RandyBarba/
RenDeck (builds decks) http://www.renodeck.ca/
Royal Flower Design https://royalflower.ca/
Studio Connect https://www.facebook.com/studioconnecthumberbay/

Veronica Thompson (mortgage broker)  http://RenewYourMortgage.ca

David Pylyp Accredited Senior Agent  http://DavidPylyp.com

Satori Living (home staging) http://www.satoriliving.ca/