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!

Is the Toronto condo market either experiencing or headed for a crash? Our short answer would be no. Many conditions present in shattered markets are thankfully lacking in Toronto, from a massive prior run-up in prices to excessive overbuilding and inventories, to unsound mortgage financing practices….. Rest of story here.

Source: Toronto Real Estate Board Rental Market Report

In the first four months of 2009, TREB members reported 3,945 leased condominium apartments, representing a 38% increase over the 2,854 units leased during the same period in 2008. Almost 93 per cent of all residential rental transactions on the MLS® involved condominium apartments.

With the exception of three-bedroom units, average condominium apartment rents declined. The average rent for the benchmark two-bedroom apartment fell two per cent from $1,852 to $1,813.

While the number of rental condominium apartment transactions increased by almost 40 per cent, the number of listings increased by over 60 per cent. Renters experienced more choice and thus more negotiating power with regard to rents.

Much of the increase in rental listings can be attributed to a strong increase in the number of condominium apartment completions at the end of 2008. According to the Canada Mortgage and Housing Corporation, fourth quarter 2008 condominium apartment completions increased by 96 per cent year-over-year in the GTA. Most of these completions took place in TREB’s central districts. Many completed apartment buildings registered as condominium corporations in the first four months of 2009, resulting in an increased number of investor-held units entering the rental market. Click for whole story.

Condominiums come in many forms ranging from town houses, modest low rises, and luxury high rises with 5 star amenities.  There is no shortage of styles and selections to choose from.  Depending on your lifestyle a condominium might be the right fit for you.  For example if you are an avid traveller and often away from home a condo may fit the bill.  For someone who is active many buildings offer gyms with weight and cardio equipment.  Some even offer full size swimming pools.  If you enjoy gardening, a unit with a balcony or terrace is often suitable.  Other benefits of condo ownership, depending on which building you choose, may include not having to mow the lawn or shovel the walks, indoor parking, 24 hour security, not having to worry about performing exterior maintenance and a multitude of other conveniences ranging from game rooms, workshops, racket ball courts, party rooms, and even guests suits for residence to use.

When shopping for a condominium keep in mind that all condominiums charge a monthly maintenance fee ranging from a few hundred dollars to over $1000.  The general rule of thumb is the more amenities a building offers and the larger the unit, the higher the monthly maintenance fees will be.  In some buildings the monthly fees include water, heat, hydro, common element insurance, interior /exterior maintenance, use of common areas, and even cable TV.  In others the monthly fees may include only the basics such as water, common element insurance and building maintenance.  Typically the less utilities that are included and the fewer amenities the building has, the lower the monthly maintenance costs.  The owner is responsible for additional utilities, such as hydro, if not included in monthly fees.  There is also a relation between how well the building is managed fiscally and the monthly fees. Maintenance fees typically range from fifty – sixty cents per square foot of the unit but can differ depending on management and the building.

There are also many physical characteristics of a condo unit you should look for when shopping.  If you are afraid of heights, although the view may be spectacular, a penthouse on the 40th floor may not be the best choice.  If you like going outdoors to get fresh air, a condo with a balcony will probably be high on your priorities.  If you like bright sun-filled rooms, then a condo with a western, southern, and or south western exposure will most likely be important to you.  A parking spot is also a nice feature to have if you own a vehicle or entertain quite frequently.  If you do not have a need for a parking spot, more often then not you can rent it out on a monthly basis.  Storage is important to.  Make sure you ask yourself how much storage you will need and if there is suitable storage space within the unit or if a locker accompanies the unit.  If you live a minimalist lifestyle you can probably get away with needing only the storage space that comes with in the unit itself.  Once again if a locker accompanies the unit you can always try and rent it out to another resident.  Just make sure you check with the property management company to ensure it’s permitted.

There are also other rules and guidelines set out by the condominium corporation that you should pay attention to.  Most condominiums allow pets but there are usually restrictions placed on the number, type, and size each unit can house.  Some don’t allow pets so if you are an animal lover make sure you check that your furry friend is permitted.  Quite often, condominiums have restrictions on the outside colour of window treatments.  Usually white or off white is the norm.  Additionally many condominium corporations require that you seek permission to undergo any significant renovations to your unit.  These rules are in place for reasons.  One of the most important reasons is that a large number of people are living in very close proximity to one another and the rules help to maintain peace.

Noise is another factor to consider.  If you are okay hearing the occasional foot step in the corridor or thump from the neighbour above you dropping something you’ll probably adjust to condo life quite well.  On the other hand, if you are a person that likes to celebrate by throwing large noisy bashes, perhaps your lifestyle is better suited to owning a house.  Remember that when living in a condominium you’ll likely have 5 immediate neighbours: one on each side of your unit, one above, one below, and one across the hallway.  This intimate setup can be a recipe for great neighbourly relationships or the beginning of a disastrous experience if mutual respect is not shown.

Some Benefits of Condo Living:

• Often more affordable
• Worry free maintenance
• Some utilities included in monthly fees
• Access to amenities such as fitness centre, pool etc…
• 24 hour security in some buildings
• Locations in urban environments
• Breath taking views from higher floors
• Sense of community

Some Drawbacks of Condo Living:

• Maintenance fees may cost more depending on how efficiently the building is operated
• No yard
• Noise (minor in most cases but potentially a serious problem)
• Neighbours (Too many)
• Stricter regulations
• Distance between unit and parking / building exit
• Lack of natural light depending on where the unit is situated
• Less control over utility expense (If included in monthly fees)

** Photo courtesy of Joe Howell found on Flickr.

“Typically condominium apartment transactions comprise just over 20 per cent of total sales but in December they accounted for more than a quarter of resale activity,” said Ms. O’Neill. “Condos are often more affordable than other housing options and they show particularly well in winter.”

Increasing by 12 per cent over the previous year to a total of 93,193 sales, 2007 was the best year ever for GTA resale housing activity and December’s 4,646 sales came within two per cent of the best performance for the month, set in 2001.

The average price in December was $394,931, which resulted in an annual increase of seven per cent from the previous year.

The most active areas in December were in the City of Toronto.

Riverdale (E01) saw a 75 per cent increase in transactions compared to December 2006, primarily based on semi-detached home sales.

In the Mimico area of Etobicoke (W06) transactions were up 57 per cent, driven by a significant increase in the sale of condo apartments.

In North York, (C14) sales increased by 44 per cent compared to last December, as a result of strong detached home transactions.

Toronto’s Downtown East (C08) experienced a 59 per cent increase compared to the same timeframe a year ago due to strong condominium and semi-detached home sales.
“We saw strong, stable monthly performances throughout 2007, which illustrates that consumers now recognize it’s always a great time to buy or sell their next home,” said Ms. O’Neill.

Toronto REALTORS® are passionate about their work. They adhere to a strict code of ethics and share a state-of-the-art Multiple Listing Service. Serving more than 26,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada’s largest real estate board. Greater Toronto Area open house listings are available on www.TorontoRealEstateBoard.com

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* Please note that TREB counts by business or sales days. In a 30 day month, there will usually be about 20 sales days, depending on when the weekends fall, holidays,
and so on.