Good morning everyone and HAPPY CANADA DAY!
WE ARE ALL SO FORTUNATE TO LIVE IN THIS GREAT COUNTRY and we should be truly thankful.
I feel blessed to be a citizen of this great country and to be able to raise a family here. People from of all over the world come to this country to do the same and the rich tapestry that results is nothing short of amazing. Today and everyday let’s be proud Canadians and let’s be humble Canadians.
In the Real Estate Markets.
- Next week I will be able to share the GTA June sales numbers. But I expect much of the same –i.e. Higher sale prices with some increase in inventory.
- I will also share with you some new properties that I will be bringing to market as well as provide a complete list of my own inventory.
- Read below on the new legislation that took effect regarding multiple offers.
o This should help cut down/eliminate fraudulent offers, Ghost offers and some other funny business that may have occurred surrounding multiple offers.
o Multiple offers can be tricky but if handled correctly and ethically are not an issue. With multiple offers are there are winners and losers but fairness so someone will have disappointment. However, this disappointment should not result from unethical practices.
This week the news has been dominated by the economic situation in Greece and the HOV traffic Lanes implemented on the highways of the GTA for the upcoming Pan Am Games. Although the HOV traffic lanes will be a short term nuisance, the situation in Greece will unfold over the next several decades!
Yesterday at midnight (Greece Time) the Greek federal government did not (were not able to) pay a $2 billion loan payment to the IMF and the European Central Bank refused to provide any more bailout money. This marks the first time that a developed nation has not been able to repay a loan payment. The last time a nation defaulted was in 2001 – Zimbabwe.
This coming Sunday, the Greeks will vote whether or not they will accept the austerity measures prescribed by the European Central Bank /IMF or whether they will drop out of the Euro. Either option is difficult and has consequences.
Despite this being a “chink” in the Eurozone’s armour I think the Euro will continue to fair well. If the currency becomes devalued, it will make European exports that much cheaper and competitive on the global market.
In my simple opinion, Greece has to implement austerity measures no matter if they stay with the Euro or not! It’s been decades of social legacy costs and an out of whack social network culture of nepotism that has brought them to this point. Of course it’s extremely hard for the generation of the day to be faced with all the economic hardships and not having experienced/or will experience the economic benefits of the past. If no significant changes are made the system will collapse under its own weight regardless. The previous bailouts by Germany simply delayed the inevitable. Germany was in many ways an “enabler” – Now they are trying for a hard-core intervention!
I feel for the people of Greece as it will be a very tough road ahead. What I also do believe is that Greece, overtime, has the opportunity to rebuild its social economic system and actually become stronger than it ever was. It will take much time, strong leadership and a dedicated populous to achieve this.
The Greek financial crisis, explained in less than 500 words
by Timothy B. Lee Vox.com
When Greece joined the euro in 2001, confidence in the Greek economy grew and a big economic boom followed. But after the 2008 financial crisis, everything changed. Every country in Europe entered a recession, but because Greece was one of the poorest and most indebted countries, it suffered the most. The unemployment rate reached 28 percent in 2013, worse than the United States suffered during the Great Depression.
If Greece wasn’t in the euro, it could have boosted its economy by printing more of its currency, the drachma. This would have lowered the value of the drachma in international markets, making Greek exports more competitive. It would also lower domestic interest rates, encouraging domestic investment and making it easier for Greek debtors to service their debts.
But Greece shares its monetary policy with the rest of Europe. And the German-dominated European Central Bank has given Europe a monetary policy that’s about right for Germany, but so tight that it has thrust Greece into a depression.
So Greece is squeezed between a crushing debt burden — 177 percent of GDP, about twice the level in the United States — and a deep depression that makes it difficult to raise the money it needs to make its debt payments.
For the last five years, Greece has been negotiating with European Commission, the European Central Bank, and the International Monetary Fund (dubbed “the Troika”) for financial assistance with its debt burden. Since 2010, the Troika has been providing Greece with loans in exchange for tax hikes and spending cuts.
Rich European nations such as Germany believe they’re simply insisting that Greece live within its means. But the austere terms of the bailouts have caused resentment among Greeks and contributed to crisis-level unemployment and poverty. In January, they elected a new left-wing prime minister, Alexis Tsipras, who promised to reject the previous bailout deal and secure a more favorable agreement.
But he has very little leverage. In 2010, Greek debt was widely held by private banks, so a Greek default could trigger a financial panic. But since then, this debt has been consolidated in the hands of rich European governments, greatly reducing the risk of a financial crisis if Greece defaults.
So Greece faces a hard choice: it can accept the Troika’s demands for further austerity. Or it can defy the Troika, which would likely lead to a default on Greek debt and possibly a Greek exit from the euro. The Greek government is holding a referendum on July 5 to let voters choose between these bad options.
In the meantime, the Greek economy is melting down. Knowing that Greek euro deposits could soon be transformed into devalued drachma deposits, Greek people have been rushing to ATMs to withdraw as much cash as they can. That has forced the Greek government to close the banks and limit withdrawals to €60 per day.
New Provincial Government Rules take effect TODAY on how multiple offers are handled! Bill 55
Realtors – BEST PRACTICES FOR HANDLING OF MULTIPLE OFFERS – Background
Ontario Legislation Bill 55 made relevant changes to REBBA 2002 in regards to how an Agreement of Purchase and Sale must be handled as of July 1, 2015.
The law requires the Agreement of Purchase and Sale (APS) to be in writing (including signatures), and Listing Brokerages receiving the APS on behalf of Sellers must keep a
copy (electronic or hard copy) of the signed Residential or Commercial APS or an Offer Summary Document Form signed by the Buyer with the required information.
− When drafting an APS for a Buyer: Make an extra copy of the APS. This is because the Listing Brokerage must retain a copy of the APS after the presentation.
Complete an Offer Summary Document (Form #801) signed by the Buyer.
− At the conclusion of each presentation to a Seller (accepted, declined or countered), a copy of one of these documents must be retained by the Listing Brokerage.
− While it is not required, it is advisable for the Buyer Representative to retain a copy for their files as proof that the APS was presented. If questions arise about
its authenticity, RECO will investigate the matter.
Have a fantastic Canada day and super upcoming weekend!