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Posted by StagingWorks on March 26th, 2011
The article below by Tony Wong was published in the Star on March 20th.
Tammy Siergersma spent most of the winter renovating a home in east Toronto. It was a big investment for the designer, who over the last decade has bought and gutted about half a dozen properties, each time making a profit as she put them on the market.
This time the project was much more personal. The property was within walking distance of her own house near the increasingly gentrified neighbourhood of Leslieville.
“It was much closer to home, and I know I would likely end up meeting the buyers at the No Frills, so the last thing you want them to do is complain about the place,” laughs Siergersma.
But with reports that the spring market may be weaker this year than last, and with Canadians up to their eyes in debt, Siergersma could be forgiven for wondering — are there any buyers left?
Spring is the ultimate barometer for the housing market, when buyers are venturing out once again after shaking off the shackles of winter. While the season doesn’t officially start till March, the hyper market of the last few years has seen activity generated as early as February.
So far sales have been trending down from last year’s record levels, but have been holding up better than expected. In the first half of March, sales in the Greater Toronto Area are down by 5 per cent compared with last year. The average price of a home is now $460,196, up 4.6 per cent from last March. But the million-dollar question for buyers and sellers is whether prices will hold. So far the current run-up in house prices has been one of the longest since the end of World War 11. Home prices have increased every year since 1996. But analysts are wondering whether this is the year that the party will stop.
“This spring should be reasonably vibrant, but the second half of the year could be a different story,” said Sal Guatieri, senior economist at BMO Capital Markets.
Many economists think the market is overvalued, but not all agree that a correction is in the cards. With the economy giving mixed signals, the experts are not in agreement. Forecasts range from a 25 per cent drop in housing prices to an increase of 5 per cent.
The consensus though, seems to be that the housing market is in for a relatively soft landing, although house prices aren’t going to be galloping ahead as they have in the past, with modest gains at best in the future.
“I think this spring is the last kick at the can,” said Benjamin Tal, senior economist for CIBC World Markets. “Next spring will definitely not be as good. After that we are in for a long period of maybe five to seven years of stagnating house prices.”
Tal says a “little stagnation” after 16 years of continuously rising prices in the GTA is probably not a bad thing.
Property prices in relation to incomes and rents are already much higher than long term averages, says Tal.
“In order for things to go back to normal levels you would either have a crash, or for prices to go flat.”
BMO’s Guatieri agrees that pricing will be constrained moving forward. The Bank is forecasting that the key overnight central bank rate will double from 1 per cent to 2 per cent by the end of the year which will put a further crimp in some budgets, especially for first time buyers.
New stringent mortgage regulations reducing amortizations that kicked in last week are also expected to take some buyers out of the market.
And by this time next year overnight rates could be as high as 3 per cent, according to some analysts.
That’s significant. According to a recent survey by the Canadian Association of Accredited Mortgage Professionals, about 4.5 per cent of variable mortgage rate holders said they couldn’t afford their payments if rates increased by just 100 basis points.
“My concern is that given relatively high house prices and high levels of consumer debt in Canada, as soon as interest rates begin to rise significantly, purchases of new and existing homes may decline rapidly, especially for first-time home buyers,” said John Andrew, a urban and regional planning professor at Queen’s University. “The relative equilibrium that currently exists in the market could quickly give way to a glut of houses for sale, due to a rapid drop in transactions.”
Guatieri says all bets are off if the economy dips back into recession. Global stock markets are in turmoil as Japan fights a potential nuclear disaster, while the Middle East faces an uncertain political future.
“If you have a situation where people start losing their jobs again, then that would be a trigger,” says the economist.
At home, Canadian debt-to-income levels are already at the highest in history, and equivalent to the United States. A combination of rising rates and job losses could be devastating.
However, Tal feels a crash is unlikely.
“Just because we are overvalued doesn’t mean we will correct. You need a catalyst. That could be a huge increase in interest rates, or it could be some kind of subprime loan situation that you had in the United States. None of that seems to be on the horizon.”
There are a few mitigating factors. On a macroeconomic level Canada is doing relatively well, and will likely top the Group of Seven economies with GDP growth.
“Economic conditions in Canada continue to improve. The unemployment rate is trending lower, employment levels are above pre-recession levels, wages are growing and financial conditions remain very easy,” said Bank of America Merrill Lynch in a report.
But no need to get cocky. Growth will still be weak.
“It’s really just a reverse beauty contest. We look the least ugly in many economic measures,” said Scotiabank chief economist Warren Jestin.
Still, the housing market in Canada has avoided the mess in the United States. And buyers and sellers this spring look like they’re in for a reasonably balanced market.
When Siergersma started her renovation business four years ago, every home sold for more than what she had bought it for. The current spring market will likely see that trend continue.
“There is still a lot of interest out there. People have the money in hand and they are ready to go,” she said. “I don’t know what’s going to happen in the future. But so far it’s been a great spring.”
When she first bought the property, it was in such bad condition that the appraiser from the bank assessed it as “unliveable.” The first bank wouldn’t advance a mortgage.
But more than $200,000 later, the detached home has been transformed from decrepit to designer chic.
After placing the home on the market two weeks ago, Siergersma had more than 90 buyers the first weekend of her open house. It sold conditionally this week for $695,000, the highest price on the street.
Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.
StagingWorks has been voted Toronto’s top home stager by Toronto Life.


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Posted by StagingWorks on February 8th, 2011
The following article by Melinda Fulmer was posted on MSN Real Estate.
You don’t have to shell out big bucks to get a better price for your home. These easy, inexpensive fixes will add value to your home without breaking the bank.
Fetching top dollar for your home in today’s tough market doesn’t require an $80,000 kitchen remodel or an expensive landscape redesign.
Real-estate experts say your best bet is to invest a little sweat equity into a series of small weekend jobs — $300 or less — that boost your home’s appeal and eliminate buyers’ biggest objections.
Here are 10 quick ways to add value to your home without breaking the bank:
1. The de-clutter weekend
De-cluttering should be the first job sellers cross off their list before starting any other project, agents and real-estate investors say.
Most people, says Atlanta house flipper Brian Trow, get used to their clutter and don’t realize what a distraction it is for buyers. “You want to give a buyer the chance to see their stuff in your house,” says Trow, whose firm Foundations Investment Group is featured on A&E’s “Flip This House.” Moreover, he says, it gives the illusion of space.
Get a friend, colleague or casual acquaintance (who won’t mind offending you) to walk through your house and give it to you straight. What is distracting? What needs to go?
What’s your home worth?
Figure out a way to get your clothes, books, appliances, papers, toys, art and photos under control. Shoving everything into cabinets, closets and the garage is not the answer, says Toronto-based home staging expert Debra Gould, owner of The Staging Diva. People will look there and think, “If they can’t fit everything in there, neither can I.”
Pack things away in boxes and put them in the attic or put them in storage. Gould recommends coming up with a system of folders for bills, mail and important papers. Clean out a junk drawer or drawer in your entertainment center to hold these folders, so they can be cleared off counters easily. Likewise, clear the decks of a lot of your kids’ toys, putting only 15 or 20 in rotation at a time. Donate some and store the rest in boxes in the attic or garage.
“You have to think, ‘What can I live without?’ for the next few months,” Gould says.
2. Make over your cabinets
The kitchen is the most important room in the house to get right, says Timothy Dahl, editor and founder of home-renovation blog Charles & Hudson. And cabinets are often one of the biggest problems, he says.
You don’t need to get your cabinets refaced or replaced to make them look presentable. If they’re scratched or look dated, just spring for a couple of cans of paint and put a new finish on them.
White and other light neutral colors work best for most kitchens and bathrooms. If you have a larger kitchen that gets a lot of natural light, you could even try a dark chocolate brown or black, Trow adds.
Once you’re done painting, don’t neglect the finishing touch: the hardware. “It’s an accent that people notice,” Dahl says.
Choose something simple and relatively modern for the pulls, preferably in a brushed nickel. Steer clear of brass, brightly colored glass or anything decorated with pictures of birds or flowers.
3. Patch and paint
A fresh coat of paint in the living room, kitchen and master bathroom — the most important rooms in the house — will pay big dividends, says Elizabeth Blakeslee, an agent with Coldwell Banker in Washington, D.C. “Paint is one of the easiest and cheapest things you can do to freshen up your home and add zip to it.”
Just don’t try to jazz things up with bright colors, experts say. The most universally appealing shades are neutrals: yellow-based tones such as off-white, mushroom, medium brown or taupe, Trow says. And stay away from anything too dark. It will make the room look small.
A few more paint don’ts from the pros:
* Don’t try to experiment with accent colors or walls. (Most people don’t get this right.)
* Don’t choose four or five different colors in the house. A satin wash of one color or a couple of related colors should flow smoothly from room to room.
* Don’t leave those wallpaper borders up when you paint. Their time has come and gone.
* Once you’re done painting, don’t ruin the fresh look by re-hanging too many of your family photos or pieces of art, Trow says.
4. Spiff up your home’s curb appeal
One quick way to entice more buyers into your house is to spruce up what they see from the street. Spend a weekend cleaning or replacing your mailbox, putting up new street numbers that match the style of your house, cleaning your storm door and windows and touching up chipped paint on your front door, Blakeslee says. “You want their first reaction to be, ‘Isn’t that cute; doesn’t that look nice,’” she adds.
Take a good hard look at your landscaping and trim back any shrubs around the front that are unruly. Get rid of lawn ornaments, toys, leaves and other debris from the yard, as well as those tools or construction materials propped against a fence.
If you see bald spots, plant a few flowering shrubs. A pot of flowers by the front door, or flowering plants along the walk is a nice touch, too, agents say. Power-wash your driveway and walk (and the house, if you have vinyl siding). A tidy front yard makes buyers more willing to come inside for a look.
5. Fix your lighting
You don’t have to go crazy here, agents say. Just replace anything damaged, dated or distracting.
Get rid of that Hollywood dressing-room-style lighting that frames your bathroom mirror, or at the very least, replace all of the bulbs.
Ditch that tacky, low-hanging chandelier over the dining table and replace it with a simple pendant lamp hung a little higher — at least four feet from the top of the table, Gould says.
Ditto for that energy-efficient, but oh-so-ugly fluorescent tube in your kitchen. “Nothing looks good under them,” Dahl says.
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You don’t have to spend a lot on new fixtures — $100 or less — unless your house is priced in the upper tier of the market, experts say.
And consider replacing the light bulbs you have in your darker rooms with a higher wattage, just for the time you’ll be showing your house, Gould adds. “You want lots of light in that house.”
6. Get fabulously clean floors
Flooring is one area where none of our experts seemed to agree. So your safest bet is to spend very little and leave that choice to the buyer. “You don’t want to invest in something that someone is not going to like,” Dahl says.
Settle for a floor that looks spic and span. If you have very dirty carpet, rent a steam machine and get out the stains. If you have hardwoods, buff and polish them, agents say.
And if you have a vinyl floor that is horrendously loud or damaged, consider putting down some vinyl stick-on squares in a light color to keep it from becoming a distraction, Dahl says.
If you are very handy and can find a bargain at your local big-box store, you might be able to afford a Pergo or cork replacement for a small kitchen.
7. ‘Dress’ your house
Once your house has been cleaned, patched and painted, it’s time to think about the best way to show it off. Home stagers and flippers say it pays to spend a little time on new “clothes” for your house.
In the bathroom, that means replacing your old shower curtain with a new model that is lined and made of fabric. Buy a new bath mat that is simple and not too bright — one like the type found in hotels is great, Gould says.
In fact, the look of an upscale hotel bathroom is what you are going for, because it looks peaceful and doesn’t make you think too much about the people who have used it. Adding fresh rolls of toilet paper before you show the house helps with that effect, Blakeslee says.
Buy a set of towels that actually match and hang them from a nice-looking towel bar. Gould says you’d be amazed at how many high-end houses she stages where the owners leave out threadbare towels that detract from a $100,000 renovation.
Clear the counters and make sure accessories such as the toothbrush holder or soap dish are coordinated and look elegant.
In the bedroom, consider your comforter. Is it stained, ripped or dated? If so, consider buying a new duvet cover or spread to keep the focus on the room, not your questionable taste.
And take a good hard look at your window treatments. Keep it light, bright and simple. Tie back dark or flouncy curtains, or replace them with pre-made panels. If you’re handy with a sewing machine, whip up some simple solid-color panels on your own.
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8. Create an impression of extra rooms
Most people are willing to pay a premium for a little more breathing room. But no one is going to add on just to sell his or her home. One way you can give buyers more livable area is to spruce up your garage or basement, Dahl says.
Organize the tools, sporting goods and other items in your garage and get them off the floor, as much as possible. Make sure there’s adequate lighting and clean or polish the floors. You want it to be a space where people can imagine spending hours tinkering on some craft or woodworking project.
Likewise, if you have a basement, Dahl says, spend some time clearing and cleaning the floor, installing adequate lighting and shelving, and sprucing up the stairs and entrance. You could even try out a sealant for concrete floors, he says. “People see these as extra rooms they want to finish,” Dahl says.
If you don’t have a basement, Trow suggests creating a sitting area in the backyard, with some pavers, outdoor seating and a few large potted plants, a flower bed or water feature.
9. Tackle the small stuff all at once
Instead of spreading out those annoying minor repairs over several months or a year, why not take care of them all at one time?
When you show your house, little problems such as a leaky faucet or a cabinet that sticks can be distracting, Gould says. “You don’t want to put up doubts in people’s minds about whether they are buying a good solid house,” Gould says.
You want the attention to be on your home’s potential, not its problems.
So make a list and invest a not-so-fun 48 hours in fixing those broken drawer slides, replacing moldy caulking around the bathtub and fixing that cracked tile or broken step leading down to the basement.
10. The finishing touches
Lastly, before you open your house to buyers, make sure you’ve got the details down, Trow says. Replace old, yellowing or brass switch-plate covers with new ones made of brushed metal.
Likewise, swap out old brass doorknobs and hinges and replace them with something more up-to-date.
Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of Toronto area homes and condos.
StagingWorks is the premier Toronto home staging company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate. Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.
StagingWorks has been voted Toronto’s top home stager by Toronto Life.


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Posted by StagingWorks on September 20th, 2010
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The article below by Michael Sanibel of Investopedia provides some useful information on renovations that deliver the high return on investment.
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Independent of market conditions, home staging is a highly effective marketing tool used to maximize the selling price of homes and condos. Â
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StagingWorks is the premier Toronto home staging services company. We provide a complete range of professional services which include vacant home staging, occupied home staging and condo staging. We have staging packages to accommodate most budgets and serve Toronto, GTA and surrounding areas.
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Please visit our home staging portfolio for more samples of our staging projects. Give us some some details on your home and when you’re planning to sell, and get a free home staging estimate.  Or, call us for a free estimate at (647) 409-2091 or anne@StagingWorks.ca.
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StagingWorks has been voted Toronto’s top home stager by Toronto Life.
 
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The odds are good that renovating will increase the value and marketability of your home in the long run.
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But some renovations have a better payback than others, and the amount will depend on your specific location. For example, a new wood-burning fireplace sells much better in colder climates. So which home renovations are worth your time and money?
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1. Siding ($4–$21 per square foot) – Recoup: 87%
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The return on siding is high because of its relative cost to the value of your home and its ability to make your home look new again. Another attractive feature is that there are sidings available that are zero maintenance. So a potential buyer looking at a long-term purchase benefits from the reduced cost of future upkeep.
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The least expensive options are vinyl or aluminum siding, at $4-$5. The newer vinyl is fade-resistant, available in many colours and virtually maintenance-free. Aluminum is durable but will require painting if it is scratched.
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Other more expensive options include cedar ($9-$12), stucco ($9-$11) and brick veneer ($9-$21).
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2. Windows ($25-$60 per square foot) – Recoup: 85%
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In addition to sprucing up your home’s exterior, new windows can substantially improve the energy efficiency. This is a big selling point, as the cost of heating and air conditioning has continued to soar.
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The total cost will depend on the brand and type of window you select, and the difficulty of the installation. Storm windows and those with thermal glass will be at the middle of the cost range. Specialty windows such as double-hung and bay windows will be at the top of the range.
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Quality windows will increase the comfort of your home and help prevent moisture and mould from building up inside. They will also do a better job of restricting pollen and bugs, and reducing outside noise levels.
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3. Bathroom remodel ($5,000+) – Recoup: 70-85%
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An updated bathroom is another great selling feature. While a coat of fresh paint will do wonders for the interior of a house, there’s no way to cover up old sinks, bathtubs and fixtures. Today’s buyer is looking for molded sinks, marble vanities, ceramic tile, whirlpool baths, unique lighting and modern fixtures.
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The cost can vary widely, depending on the extent of the remodel, and luxury fixtures can run into thousands of dollars. Should you decide to remodel specific parts of your bathroom, you can expect to spend about $4,000 for a whirlpool bath and around $3,000 for a ceramic tile tub enclosure or shower stall.
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4. Kitchen remodel ($7,500+) – Recoup: 75-80%
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If you’re on a limited budget, the choice between remodelling a bathroom or a kitchen should probably be based on which one will give you the most pleasure and satisfaction. You will recoup roughly the same percentage of your cost on either one.
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The total cost will be a function of the types of materials used, the extent of the remodel and whether or not you replace some or all of the appliances. These are rough estimates expressed in dollars per linear foot: $50-100 for new cabinets, $40 for laminate countertops and $75 for marble countertops.
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5. Master bedroom suite ($115 – $200 per square foot) – Recoup: 75%
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Older homes benefit the most from this addition, whether you are remodelling an existing bedroom or adding a new one. In many cases, a master bathroom will be added at the same time because of the cost efficiencies that result. The cost of plumbing and fixtures would be added to the overall cost.
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The bottom line
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Remodelling can include everything from adding a new room to simply updating the bathroom faucets. Before pursuing any of these options, you should evaluate the payoff of the work you plan to have done.
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Other home improvements that don’t pay off as well as those above include swimming pools and professional landscaping. While many people will add these for their personal enjoyment, it’s unlikely that a majority of the cost will ever be recovered.
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Before undertaking major remodelling projects, make sure you have taken care of the basic maintenance on your home. If you are selling your home, an updated bathroom won’t do you much good if your carpets are old and worn out, or if your exterior paint is peeling. Fresh paint and new carpeting or flooring will go a long way in preserving or increasing your home’s value at a relatively small cost.
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Posted by StagingWorks on January 5th, 2010
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Planning on  updating the look of your current Toronto condo? StagingWorks provides interior styling and decorating services.     The Toronto Star article below outlines how condo owners can claim the home renovation tax credit.
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Toronto Star Article – Adrienne Brown
How condo owners can claim the Home Renovation Tax Credit
If the term “Home Renovation Tax Credit” brings to mind images of detached houses in the suburbs and not units in sky-high buildings, you’re not alone. Many condo owners are paying little attention to the credit when they could be reaping the benefits.
In fact, there are many opportunities for condo owners to claim the credit, including some outside of their own units.
Condo owners can claim a portion of improvements made to their building between Jan. 27, 2009 and Feb. 1, 2010, as long as they were at least partially responsible for paying for the upgrades.
Here’s how it works:
Assuming each condo owner pays a monthly fee to a condo corporation, repairs or renovations completed and paid for with that money should count toward the HRTC. The condo corporation is simply paying for these goods and services on behalf of all of the unit owners.
Condo corporations are unable to claim the credit because it is available only to individuals, so it’s up to each person to claim his or her portion.
Therefore, on their 2009 taxes, condo owners can claim the credit for renovations to their own unit – similar to what would be done in a detached home, for example – as well as their share of any renovations to common areas paid for by the condo corporation.
This could include anything from new windows installed in your building to a redesigned lobby area or improved landscaping.
Add these shared costs with renovations you may have done to your individual unit (bathroom or kitchen upgrades, new fixtures, painting) and you could significantly increase your credit.
Canada Revenue Agency guidelines for condo owners indicate that improvements made to common areas will qualify if:
– You own your unit. Renters are out of luck, even if they pay similar monthly fees.
– “The expenses would be eligible expenses if the common areas were treated as an eligible dwelling” – if new furniture wouldn’t count in a detached home, it won’t count in a condo either.
– Your condo corporation has notified you of your share of the expenses.
As a reminder, the tax credit applies to renovation costs over $1,000 and under $10,000, so if you spent a few hundred dollars on your own unit and the condo corporation spent a few hundred more on your behalf, that may be the difference between getting a return or not.
What you’ll need to make the claim:
Since you’re not dealing directly with stores or contractors and won’t receive original receipts or invoices, in order to claim your portion of building renovations you need documentation from your condo corporation. This can be in the form of a letter and must be signed.
Most condo corporations have a set of guidelines that help them determine the allocation of expenses for common areas. It is this documentation that will guide them in establishing each condo owner’s contributions to renovations and therefore how much people can claim.
According to Canada Revenue Agency, the documentation “must clearly identify the type and quantity of goods purchased or services provided” and also include the following:
– The cost of the renovations
– Your portion of the expenses (exactly how much you are considered to have contributed)
– Contact information for the vendor or contractor (including GST/HST number, if applicable)
– A description of the work in question
– The date or dates the work was completed.
If you do not receive documentation for improvements to your building, it is worth asking about. It could mean a few more dollars in your pocket!
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