LIVEHERE REAL ESTATE

Spring is the perfect time to refresh your outdoor space and get your backyard ready for warm-weather enjoyment. A little effort now can make a big difference in how your outdoor areas look and function. Use this Outdoor Spring Cleaning Checklist to tackle your porch, patio, siding, gutters, and landscaping so you can fully enjoy the season ahead.

A Simple Guide to Tax Deductions for Your Rental Property Managing a rental property comes with its perks, but it also means navigating the world of tax deductions. The good news? With the right tools and a little know-how, you can maximize your deductions and minimize your tax bill. Here’s a simple guide to help you through the process. Use TurboTax (or a Similar Tool) If you’re new to rental property deductions, using a tool like TurboTax can make the process easier. TurboTax is run by Intuit and even integrates with QuickBooks Online if you want to get into the finer details. It allows you to input your expenses and automatically calculate the deductible amounts, saving you time and reducing errors. Calculating Rental Expense Deductions When deducting expenses related to your rental property, you’ll need to prorate certain costs based on the space you’re renting out. Here’s how to do that: Determine the Rental Space Percentage Divide the size of your rental unit by the total area of your home. For example, if your rental unit is 700 sq ft and your total home is 3,000 sq ft, that equals approximately 23% (700/3,000 = 0.233). Apply This Percentage to Monthly Costs You can deduct this percentage of monthly housing expenses, including: Utilities (electricity, water, internet) Property taxes Home insurance General home maintenance and repairs Many tax software programs, including TurboTax, allow you to enter the full amount and then apply a percentage. Alternatively, you can calculate the deductible amount manually. Mortgage Interest Deductions You can also deduct a portion of your mortgage interest . Use the total interest from your 2024 mortgage statement (not individual monthly payments) and apply the same rental space percentage. Important: You can only deduct the interest portion of your mortgage payment—not the principal, which goes toward paying down your loan balance. Phone Expense Deductions If you use your phone for managing the rental, you can deduct a reasonable percentage of your bill. 25% is a safe estimate, while 50% might be the upper limit if you use it extensively for rental-related tasks. Accounting for Partial-Year Rentals If your rental unit was only in operation for part of the year, you need to adjust your annual expenses accordingly. For example, if you rented for 4 months , you would deduct 4/12ths (33.33%) of annual costs like: Mortgage interest Property taxes Home insurance For monthly costs, you can simply use the bills from the months the unit was rented. Fully Deductible Rental Expenses Certain costs are 100% deductible if they are directly related to the rental unit. These include: Appliances purchased for the rental (e.g., a new fridge) Repairs specific to the rental unit (e.g., fixing a plumbing issue) Setup costs (e.g., painting, disposal fees) You can also deduct any leasing fees or report the net rent you received after these costs. What If You Show a Profit or a Loss? Once you add everything up, you may find you’re either breaking even, showing a loss, or making a profit: If you show a loss: This could lead to a small tax refund . If you show a significant profit: Reach out, and we can discuss strategies to minimize your tax liability. Don’t Stress—You’ve Got This The process may seem complex, but it’s manageable with the right approach. Even if you make a minor mistake, it’s unlikely to cause major issues. The chances of an audit are relatively low, especially for honest landlords reporting their income accurately. If you’re unsure about anything or want to go over the finer points, feel free to schedule a call. We’re here to help make tax season a little easier.  Happy Renting!

We’ve been keeping an eye on the latest threats of tariffs, and while it’s too early to say how everything will play out, there are a few key ways this could impact the real estate market—both broadly and here in Guelph.

Guelph is a fantastic place for students, offering a variety of neighbourhoods that cater to diverse lifestyles and budgets. Whether you’re looking for proximity to campus, vibrant community vibes, or affordable housing, there’s something for everyone. Here’s a guide to some of Guelph’s most student-friendly neighbourhoods:

Discover the Academic, Social, and Outdoor Gems That Make Guelph Perfect for Students. Guelph, Ontario, isn’t just a charming city with beautiful landscapes and friendly faces—it’s a vibrant hub for students. Whether you're attending the University of Guelph, Conestoga College, or another local institution, student life in Guelph is a unique blend of academic opportunities, cultural experiences, and community spirit.

The Bank of Canada concluded 2024 with another reduction to its policy interest rate, cutting it by 50 basis points to 3.25%. This marks the fifth rate cut since June, reflecting the Bank’s ongoing efforts to support economic growth and maintain inflation near its target range. Below is a summary of the decision's rationale, its implications, and what it means for Canadian borrowers.

A vendor take-back (VTB) mortgage is an alternative to a traditional mortgage where the seller of a property also becomes the lender. Instead of obtaining financing through a bank, buyers work directly with the seller to negotiate the loan terms, including the down payment, interest rate, and repayment schedule. This arrangement is typically offered by sellers who own their property outright (no existing mortgage). The buyer makes regular payments to the seller over the loan term, using the property as collateral. Unlike traditional mortgages, where the relationship ends after the sale, a VTB mortgage creates an ongoing financial arrangement between buyer and seller, requiring direct interaction throughout the repayment period. Why Choose a VTB Mortgage? Flexible Terms VTB mortgages offer far more flexibility than traditional loans. Buyers and sellers can negotiate terms that meet their specific needs, including lower down payments, custom interest rates, or repayment schedules tailored to unique financial situations. For example, a buyer might secure a property with a smaller initial investment, while a seller benefits from a higher interest rate. Steady Income for Sellers For sellers, a VTB mortgage provides a consistent income stream over time instead of a one-time payout. This steady cash flow can be particularly appealing for retirees or individuals seeking reliable income to support long-term financial stability. Potential Tax Benefits Receiving payments over time rather than a lump sum can help sellers manage their tax liability by spreading income over several years. This approach may reduce their overall tax burden and keep them in a lower tax bracket, though professional tax advice is recommended. Faster and Simpler Transactions Since VTB mortgages eliminate the need for bank approval, they often lead to quicker, smoother transactions. This can be a significant advantage for buyers who struggle to meet traditional lenders’ requirements or for sellers looking to close a deal promptly. Access to Larger Mortgages A VTB arrangement can sometimes allow buyers to secure financing beyond what a bank would approve. This opens opportunities to purchase more desirable properties or larger homes that might otherwise be out of reach. Custom Repayment Plans The ability to tailor repayment schedules is another major perk. Buyers and sellers can agree on terms like interest-only payments for an initial period or flexible amounts based on seasonal income. This customization can help buyers better manage their finances while maintaining steady payments. A VTB mortgage can be a win- win solution, offering flexibility and benefits for both buyers and sellers. If you’re considering this option, consult a real estate or financial professional to ensure it aligns with your goals.

Starting November 22, Canadian mortgage borrowers can switch lenders more easily, thanks to OSFI’s decision to remove the Minimum Qualifying Rate (MQR) requirement for straight switches of uninsured mortgages.

As the holiday season draws near, there’s no better way to spread cheer than by supporting the vibrant local businesses in Guelph. Shopping local is a wonderful opportunity to sustain our community while discovering unique, thoughtful gifts that add a personal touch to your celebrations. Here’s how and why you should prioritize local shopping in Guelph this holiday season.