The Greater Montreal Real Estate Board has released an encouraging housing report that shows that while home sales in Montreal have slowed down in comparison with September 2009, they are still at a level similar to sales from 2005-2008.

This shows that the housing market may not be in as much of a slump as the media would have us believe. Sales are down in comparison with this time last year, but the housing market was booming last fall due to the country coming out of a recession.

You can keep up with the local markets with our monthly market reports, republished with permission from Andy Dodge, available here.

Andy Dodge has released a new Westmount Market Report, re-published with permission here.

We’ve just gotten word of a beautiful new residence at our affiliate, Castello di Casole. It is called the Poggio alla Corona, a four-bedroom re-creation of a Tuscan farmhouse, updated with contemporary elegance. The Poggio alla Corona is open-concept, with floor-to-ceiling glass walls looking out onto the glass-tiled infinity pool, and is surrounded by terraces, Italian cypress, mature vineyards, and olive groves.

This property is located slightly to the west of the main Castello di Casole, and is also sold in fractional ownership. Contact us today if you are interested in this delightful property. We can answer all of your questions about fractional ownership and help find the right property for you!

This is a guest post by McGuigan Pepin real estate broker Reggie Robbins.

I have always loved Art Deco architecture and, after my recent listing and sale of  178 & 180 Willowdale by Charles Grenier (in the heart of some of Outremont’s best art deco),  I am intent on learning more about it.  The Art Deco Society of Montreal is a bilingual, non profit organization formed to foster awareness and appreciation of this period and to preserve the many precious arts from this era. Montreal ranks in the top ten cities in the world for its Art Deco architecture.

I joined the Art Deco Society of Montreal and thoroughly enjoyed the first guided walking tour in Outremont October 5^th – didn’t hurt that it was the most glorious autumn evening!  We started at the Parklane, 1360 Bernard West, followed by some fine examples of art deco on that commercial strip.  A group of about twenty splits into an English and a French tour…great people who dine together after the walk at one of many nearby restaurants.  The next tour is October 26^th and centers around the Willowdale,Vincent D’Indy, U of M area. We plan on exploring the Outremont Theatre as well.  Visit the artdecomontreal.com website for info on upcoming events, how to become a member etc.  A membership at $35 (single) and $60 (family) entitles you to half price on the tours (which are only $10).  Get to know more of this great city!

This past weekend, McGuigan Pepin participated in Art Westmount 2010 as a major partner! We sponsored the Prud’homme room in Victoria Hall, which featured several very talented photographers and painters such as Robert Asch, Flora-Lee Wagner, David Asch, Jaroslava Miler, and Margaret White.

L-R: Robert Asch, Flora-Lee Wagner, David Asch, Joan McGuigan, Jaroslava Miler, Brian McGuigan, Margaret White

Joan and Brian with our sponsorship sign at Art Westmount 2010

Reprinted with permission, from BMO Nesbitt Burns “NetWorth” newsletter, summer 2010

Is it Wise to Make Gifts to Adult Children?

By Adriana Kacir, Investment Advisor

Parents often want their adult children to benefit from their wealth today rather than having to wait for an inheritance. The decision to give to children must be made carefully after considering all the consequences and potential unforeseen events. Consider these factors:

• Loss of control over the funds or property once they are gifted
• Future change to your health or financial situation
• Exposure of the funds or property to the children’s creditors, spouses, or  heirs
• Effect on the children’s work ethic or lifestyle
• Potential undue influence on you by the children to make the gift
• Effect on the distribution of your estate
• Income taxes

Below are some answers to the most frequently asked questions about gifts to children:

How can I help my child purchase a home?

You can avoid some of the above pitfalls by registering a mortgage against the property. The mortgage can be forgiven in your Will or offset against the child’s inheritance.

Will the gift be taxable?

In Canada there is no gift tax but there is capital gains tax if the gift consists of capital property with an unrealized capital gain. Capital gains tax will also apply if the capital property is sold to the child for less than fair market value.

Will my child’s spouse have a right to the gift in the event of marriage  breakdown?

Each province in Canada has different rules that offer varying degrees of protection for property received by gift or inheritance. This protection may apply to a property claim on marriage breakdown, or to a claim against the estate of a spouse. However, the statutory protection may not be sufficient because there are many exceptions and they are strictly interpreted. In addition, children may move from one province to another, making it uncertain what the applicable law will be in the future. Transferring the gifted property to a trust is sometimes recommended. In addition to offering some protection from spousal claims, it can also prevent the child from voluntarily transferring the property to the spouse.

Alternate Strategies

You may decide to re-examine your intentions to make gifts to your adult children once  all the known and potential consequences are considered. As previously stated, a good option may be to create a trust so that the property being set aside for the children can still be used for the children’s benefit without complete loss of control. In addition, the trust may protect the property from those making claims against your children. Professional advice is essential if the trust route is chosen to ensure that it provides the appropriate protection for your circumstances and avoids certain tax traps. You should seek independent legal advice if you want to make large gifts to your adult children. A safe philosophy for gifting to children is never give away anything that you may need or want back. Remember, once the gift is made, there is no reversing it.

Your BMO Nesbitt Burns Investment Advisor can assist you in locating an estate planning specialist.

The CMHC has released a very encouraging housing report that suggests that the Canadian housing situation may not be as dire as some think. For instance, the money spent on new home construction, as well as the rental, sale, and renovation of existing homes reached one-fifth of Canada’s total gross domestic product in 2009—$307 billion total!

“The Canadian Housing Observer provides a comprehensive review of the critical role housing plays in the Canadian economy,” said Karen Kinsley, President of CMHC. “The Observer details the far-reaching impact of housing in generating economic activity and employment across sectors, and highlights how housing finance continues to be a cornerstone of Canada’s financial system.”

The report also shows that more Canadians are buying and occupying condos, and that home sales and financing are generating a solid portion of  Canada’s economic activity.

The report released by CMHC covers several important topics, including the EQuilibrium™ Communities Initiative, which will “help developers bring to market neighbourhoods that are affordable, energy-efficient, and environmentally sustainable”. Click here to read more!

Westmount mayor Peter Trent wrote in to the Westmount Examiner to clear up some misconceptions about why Westmount is still sans BIXI.  Among the highlights of the letter:

“[…]the City of Westmount and the City of Montreal are two distinct legal entities and […] BIXI’s legal arrangement is with the City of Montreal only; […] Westmount doesn’t want to be treated as, say, the City of London and pay for the whole BIXI infrastructure; […] inserting such a system in a highway called Sherbrooke Street (or any other major street) is irresponsible without proper planning”.

Kudos to Mayor Trent for clearing up this matter!

September 23:
“Economic and Environmental Solutions: The Potential of World Federalism”  — An illustrated talk given by McGill grad student Sara Hayward. Open to the public, no charge, 7pm at the Unitarian Church (5035 de Maisonneuve Ouest). For more info, call Carol Greene at (514) 426-4170

Atwater Library Lunchtime Series
John Aylen gives a presentation on his new book, Revive and Grow Strong: The Story of the McEuens and the McEuen Scholarship Foundation. Free admissions (donations accepted), 12:30PM at the Atwater Library (1200 Atwater, at Ste-Catherine)

September 28:
St. James Literary Society
Professor Thomas Fox (mathematics professor at Dawson College and classical music singer) will give a presentation about the music and the life story of Paul Robeson, including his fate during the McCarthy era. $10 admission for non-members, 7:30PM at the McGill Faculty Club (3450 McTavish). For reservations, call (514) 484-0146.

Atwater Library Fall Book Sale:
September 30, 6:00PM to 8:00PM
October 1, 10:00AM to 5:00PM
October 2, 10:00AM to 2:00PM
Atwater Library and Computer Centre (1200 Atwater), in the Library’s Reading Room