Tag Archives: Greater Toronto Area

Buying an unbuilt condo? Think twice, agent says

Being exceedingly careful in one’s condo purchase is never a bad thing, especially in light of the $3-million class action by over a hundred condo owners in Ottawa.

Toronto-based real estate agent David Fleming, who says that he has never been involved in a pre-construction condo transaction in his 13 years as a professional, advocates one simple bit of advice: “Never buy new.”

“I liken it to buying a pair of jeans. If you walked in [to a store] and you couldn’t try them on and didn’t know how long they would be, and what the waist was … that’s a hundred-dollar pair of jeans. So why would someone buy a million-dollar condo the same way?”

The most important aspect that buyers should remember is the fact that they can back out with no penalty, as Ontario provides a 10-day “cooling off” period that can serve as an out for hesitant consumers. The countdown for the 10-day duration starts once the would-be buyer receives a copy of either the disclosure statement or the fully signed purchase and sale agreement, whichever comes later.

Another wise step would be to always hire a lawyer, who should be tasked to review all of the documentation involved in the transaction. If the lawyer suggests amendments to areas of concern, these proposals should be forwarded to the developer.

“If the developer says no, then don’t go ahead with the transaction.”

Fleming also noted that it would be helpful to remember that the people in the showroom are still salespeople who work for the developer, no matter how warm and accommodating they might seem. Working with one’s own real estate agent should help a consumer avoid an ill-advised purchase.

Source; Canadian Real Estate Wealth – by Ephraim Vecina 03 Apr 2017

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A potential way to end Toronto bidding wars

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New home buyer Marko Sijakovic and his fiancée had to contend with months of looking and 10 bidding wars before they were finally able to purchase their first home.

Adding to the stress of a record-breaking market was the fact that Sijakovic didn’t how many other buyers he was up against, or how much they were bidding.

“You don’t know who you’re going against you don’t know how many there are. It’s a really grey area of what’s really happening,” he said. “Sometimes I felt like I was negotiating with myself instead of a counter party.”

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That is the case in much of Canada, where information on other bidders or a home’s history is not revealed by realtors. Today, Ontario’s Finance Minister Charles Sousa admitted to CityNews that there is a transparency problem.

“Buyers are frustrated every time they get into these bidding wars. We recognize more and more are happening not just in Toronto but it’s expanding beyond Toronto and the GTA,” he said.

He revealed it’s an issue he’s going to bring to the table when he meets with Mayor John Tory and federal Finance Minister Bill Morneau.

However, there is a way for buyers to get a little more transparency about who else is interested in their potential dream home. In July 2015, the Real Estate Council of Ontario introduced Form 801 – giving buyers the power to request documents with the names of other potential buyers and their agents. However, exactly how much people are bidding is still top secret for potential buyers.

In other jurisdictions, more transparency is the norm. In Australia, home bidding auctions take place on the property’s front door. All interested parties come face to face and go head to head.

Buyers there can also obtain home inspection results, sale-price histories and information on recent sales of comparable and neighbouring homes — without going to an agent to get the information.

In Nova Scotia, people in the market for a new home have access to a house’s history and information about properties in the neighbourhood. And over the border in Buffalo, every time a house changes hands, the old and new owners and the selling price are listed in the local paper.

Sijakovic says that he would have welcomed information like that when he was looking for a home

“In any real market the transparency needs to be there. It doesn’t matter what you’re going to buy,” he says.

Getting the Ontario market to make the change to public bids may make sense for buyers, but real estate experts say not everyone would embrace the change.

“It’s a different way of thinking, and getting the market to adopt that is going to be an uphill battle,” says MoneySense senior editor Mark Brown. He adds that more transparency wouldn’t be much help in cases where there’s only one offer on a house, or when a home is in a highly coveted neighborhood.

Realtor David Batori says when you’re on the other side of the bid, it’s better not to reveal information. Greater transparency for bidders may mean sellers don’t get the generous offers they’re hoping for.

When it comes to concerns about phantom offers, Batori believes it’s a thing of the past. But even realtors can never be sure.

“Sometimes you have a feeling,” says. “But I can never say for sure because you just don’t know.”

Source: 680 News – by NEWS STAFF Posted Apr 6, 2017

 

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Condos are king in the GTA

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Condo sales were up 79% year-over-year in February and far outstripped home sales for low-rise units.

“In the GTA in February, there were more than twice as many new condo apartments sold (as) low-rise units,” the Building Industry and Land Development Association (BILD) said in its latest report. “Altus Group recorded 3,542 sales of condo apartments in stacked townhouses and mid and high-rise buildings, and 1,541 sales of new detached and semi houses and low-rise townhomes.”

Condo sales more than doubled the ten year average.

Toronto led the way in terms of sales (1,661 units), followed by York (1,299), Peel (370), Halton (107), and Durham (105).

A lack of low-rise supply and, indeed, skyrocketing prices, are the market forces driving many buyers to the condo sector.

“Today in the GTA we have a scarcity of single-family ground-related housing that is not just unprecedented – it is almost inconceivable,” BILD President and CEO Bryan Tuckey said. “As a result we are seeing record breaking condo sales and continued price growth.”

That’s also leading to inventory issues in the condo market.

Units hit a new low in February, dropping to 10,342.

Still, that’s much better than the current availability of single-family homes.

Across the GTA, a mere 1,001 new low-rise homes were available in February. And there were only 324 new detached homes available.

10 years ago there were 17,304 low-rise homes and 12,064 detached homes available.

Source: Canadian Real Estate Wealth – by Justin da Rosa27 Mar 2017

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What’s in store for Canadian real estate in 2017?

We have the answers to all your investment questions in our Property Forecast Guide — the industry’s very own crystal ball, which will appear in the January issue of CREW.

Think of the guide, which spans dozens of pages, as your handbook for investing in real estate in 2017. Want to know what’s in store for the economy? How about hot, up-and-coming areas? This guide will help you get rich – or even richer – by giving you the best research, right in your lap. 

We spoke to veteran investors, respected economists and profiled every market and every trend that investors need to know about.

Below is just a sample of what you can expect.

Dan Campbell on GTA and the surrounding area

Tech Triangle (KWC) 
Strong and growing economy, stable and growing post-secondary institutions, airport, expanding highways, increase Go Train service and now a rapid transit system all point to a strong year for the KWC real estate market. Rental demand will continue to grow, especially around the new LRT and Go Train stations as well as the renewed downtown cores. This region is growing into Millennial Central and that bodes well for market demand for decades to come.

Hamilton 
It is still a market where investors and homeowners need to have very localized knowledge in order to ensure they aren`t buying in neighbourhoods that will underperform the market. 2017 should begin a slowing of demand from investors and landlords, but increased Go Train service, a renewal of Hamilton`s reputation and the promise of LRT will keep interest high.

Barrie and Orillia 
Although two very separate cities, they are economically co-joined. In one year Barrie will lead in growth and housing demand, and in the following Orillia will. Orillia looks to grab the lead in 2017 with the Hydro One purchase of the local utility and the development of a high-tech research center bringing in above average salaried employees. The demand in Barrie’s mid-range market should continue to be strong as new mortgage rules push people out of Vaughn and Toronto.

GTA 
Anything ground-oriented (single family homes, semis, townhomes) are poised to outperform the rest of the market, especially given the Provincial Places to Grow act limiting the amount of new-land sprawl, thus driving up the price of developable land within these constrained boundaries. Condo demand will continue with a movement to larger and therefore further from the core units beginning to feel the upward demand pressures as young families begin to grow and require more room. Units located within 800 Meters of TTC subway stations or 500 meters of street car stops will feel the highest demand increases in both rental and purchase in 2017.

Canadian Real Estate Wealth is the country’s premier guide for real estate investors. It includes the most timely and in-depth market analysis, delivered right to your doorstep six times a year.

Source: by REP 11 Nov 2016

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These figures suggest just how much immigration drives Canadian housing demand

canadian-housing-immigration

Canadian immigration is set to reach its highest annual rate in a century this year as at least 300,000 newcomers are expected, a fact Scotiabank says is a tailwind for Canada’s housing market.

While those new to Canada don’t generally make the leap into homeownership right away, notes Scotiabank Economist Adrienne Warner, sooner or later most do.

“New immigrants typically first choose rental accommodations, but eventually have homeownership rates similar to Canadian-born residents,” Warren explains in the bank’s latest Global Real Estate Trends Report.

The Canadian homeownership rate was 69 per cent in 2011, the most recent year Statistics Canada provides this census data for.

Canada’s hottest major housing market is also the country’s leading migrant destination, according to the Conference Board of Canada, a non-for-profit research organization.

Nearly a third of those 300,000 expected to settle in Canada are Toronto bound, notes Alan Arcand, the associate director of the board’s Centre for Municipal Studies.

“Toronto is the main… destination for immigrants in Canada and immigrants are the biggest driver of population growth today in Canada,” says Arcand.

“It’s important to realize that Toronto adds about 90,000 people a year to its population. So the whole CMA (census metro area) of Toronto grows by a city every year, a mid-size major city,” he continues, adding, “All those people coming need places to live, so that drives the housing market.”

This is why the Conference Board forecasts housing starts (a measure of how many units construction begins on in a given period) will waver between around 38,000 to 41,000 through the 2016-2020 period. Arcand says this is around the 10-year average.

Population age demographics also fosters housing demand, says Scotiabank’s Warren.

“The number of Canadians in their prime homebuying years is projected to continue to grow through the end of the decade, though at a slower pace than in recent years,” she explains.

Source: BuzzBuzzNewscanada – 

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For $13M, you can party like it’s 1999 in Prince’s former Bridle Path mansion

Perfect for the ultimate Prince fan.

An opulent Bridle Path mansion in northern Toronto formerly owned by Prince is on the market for the cool price of $12,788,000.

Prince's Bridal Path home is for sale

The iconic pop star died Thursday at the age of 57 at his home in Minneapolis, Minn. The cause of death is not yet known.

Prince was a long-time resident of Toronto, a city he called “a melting pot in every sense of the word.”

Prince's Bridal Path home is for sale

In 2001, Prince married Torontonian Manuela Testolini, and reportedly did much of the recording work for the 2004 album ‘Musicology’ in Toronto.

The listing for Prince’s Bridle Path home describes it as “a world class luxury residence” that boasts over 14,000 square feet of living space, a “dramatic floor plan” and “a majestic ambience for entertaining.”

Prince's Bridal Path home is for sale

Known for his ping-pong prowess, the estate also features a private tennis court, and an “award-winning pool” on a two-acre gated estate.

A perfect place to park your little red Corvette.

Source: 680 News Apr 22, 2016 3:01 pm EDT

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Toronto Homeowners Get $8,500 Richer Every Month, While Condo Owners Get The Shaft

Bicycle Bob/Flickr

Forget working. The real way to accumulate wealth is to buy a single-family house in Toronto, and wait.

OK, that’s bad advice. But given what’s been going in Toronto’s housing market, you can be forgiven for coming to a conclusion like that.

If you own an average single-family home in Toronto, your net worth has been growing by about $8,500 a month over the past year.

According to the latest numbers from the Toronto Real Estate Board, a single-family home in the 416 now averages $1,053,871, up 10.7 per cent from a year ago. Break down that increase by month, and you get around $8,500.

But in yet another sign of the growing gap between condos and houses, Toronto’s condo dwellers aren’t seeing anywhere near that kind of wealth growth.

The average Toronto condo is now worth $418,603, 5.6 per cent more than a year ago. That works out to a wealth gain of $1,925 a month. Condo owners are growing their wealth at less than one-quarter the pace of homeowners. In the 905 region around Toronto, condo owners are adding only $637 per month in wealth.

Condos just aren’t seeing the same rate of appreciation. While standalone homes in Toronto have grown by 34.8 per cent in price over the past three years, condo prices have gone up only 10.9 per cent in that time.

Say hello to the new face of wealth inequality in Toronto, where owning a back yard is a pass to riches, and owning a balcony is a pass to condo fees.

But so what, you may ask. This value is tied up in the home, it’s not like people can live off it.

Well, yes and no. A growing number of Canadians are taking out home equity lines of credit against the value of their house. The higher the house value, the more they can borrow, and some experts are getting worried Canadians have borrowed too much this way.

And there is also the wealth effect: People change their behaviour when they feel richer, generally buying more than they otherwise would.

This effect seems to be strong in Canada right now. It certainly helps to explain whyconsumer spending held up in Canada this year despite all the talk of recession, and why imports to Canada are strong even while exports are flailing.

So the money may be stuck in your home, but its effects on the economy are real.

Here’s a breakdown of how much wealth Toronto-area residents are accumulating per month off their real estate.

Single-family homes in Toronto (416):
$8,491 in wealth per month (avg. price $1,053,871, up 10.7 per cent in a year)

Single-family homes in GTA (905):
$6,404 in wealth per month (avg. price $732,852, up 11.6 per cent)

Condos in Toronto (416):
$1,925 in wealth per month (avg. price $418,603, up 5.6 per cent)

Condos in the GTA (905):
$637 in wealth per month (avg. price $307,295, up 2.2 per cent)

Source:  |  By  Posted: 10/06/2015 12:29 pm EDT

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The one market to target in Toronto?

It may be the one market many investors are now overlooking, but one industry veteran argues Toronto is still a great buy for potential landlords.

“Everyone is concerned about all the condos being built in Toronto but every year there are 81,000 new permanent residents coming to the city,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “Compare that to the 95,000 total new residents in Toronto; prices and rents are growing.”

Prices in Toronto jumped 14.9% year-over-year in February to $685,728. Condos, however, remain a more affordable option at an average of $403,392.

One neighbourhood Adams is bullish on is the Yonge and Eglinton area in mid-town Toronto.
“The Yonge and Eglinton area is one of the strongest markets for investors in Toronto,” Andrew Adams, vice president of finance and investments for Capital Developments, told Canadian Real Estate Wealth. “It’s got the Yonge line and the Eglinton LRT and it’s one of the strongest rental markets in the city.”

According to Adams, there are two types of condo buildings available in the neighbourhood; older, circa 1970 apartment-style condos and new-build condos that boast modern amenities and finishes.
The older condos often yield rents in the $2.60-$3.00 per square-foot range, while the newer units earn investors, on average $3.00-$3.50 per square-foot, Adams says.

“The Yonge and Eglinton neighbourhood has everything you need; the RioCan Centre has recently been updated, it has great access to public transit, and its surrounded by great amenities,” he said.

Source: Canadian Real Estate Wealth by Justin da Rosa 23 Mar 2016

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5 surreal wonders to explore near Toronto

Bruce Peninsula Grotto

Ontario is a province packed with natural wonders and surreal places to explore. Alas, for many of us, the drive way north to Thunder Bay and beyond is too daunting for a mere weekend trip. Fortunately, there are some out-of-this-world places within a reasonable drive of Toronto. From waterfalls to grottos, there’s plenty to astound within a short trip of the city.

Here are five surreal wonders to explore near Toronto.

The Grotto at Bruce Peninsula Park
It takes a bit of work to access the Grotto at Bruce Peninsula Park, but is it ever worth it. Carved out over Millenia by the waves of Georgian Bay, the cave is one of the most beautiful places in the country. Sunlight illuminates the interior water, which takes on an impossibly cerulean tone. Go early in the morning to avoid the crowds.

natural wonders torontoCheltenham Badlands
Access to the Badlands themselves was restricted last spring as a plan is hatched to protect this natural wonder while also allowing the public to enjoy it as much as possible. Even though you can’t walk on them for the foreseeable future, the drive around the Badlands remains breathtaking. At less than an hour from Toronto, it still very much worth the trip.

Tews Falls

Tews Falls
The Hamilton area is blessed with numerous dramatic waterfalls, but my top choice is always Tews Falls. Not only is it just 10 metres shy of the height of Niagara Falls, the dome-like setting makes for a surreal setting that feels more Amazonian than it does Hamiltonian. You can also check out the nearby Webster Falls while in the area.

Bon Echo Park

Bon Echo Provincal Park
The Mazinaw Pictographs are located on a soaring 100 metre cliff at Bon Echo Provinicial park that’s stunning enough in its own right. Close exploration reveals over 260 pictographs spread across the rock face, which make it one of the largest collections of its kind in Ontario. There’s also a dedication to Walt Whitman carved into the rock almost a century ago.

Bonnechere cavesBonnechere Caves
Ontario isn’t exactly short on caves, but few match Bonnechere for pure aesthetics. This is a photographer’s playground, with layered rock walls shaped by millions of years of erosion. The cave system is quite extensive, which allows you to explore the fossilized passageways for hours.

Source: BlogTo.com Derek Flack / FEBRUARY 26, 2016

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How transportation impacts real estate prices

Being around public transportation wasn’t always a good choice when it came to real estate. After World War II, downtown living was frowned upon and people flocked towards the suburbs in order to find larger and greener land. As a result, real estate prices rose outside the city.

Fast forward to today and we’re seeing the opposite effect. People want to live in the downtown core and public transportation is at the forefront of political debate.

Billions of dollars are being spent on new subways and streetcars in cities like Toronto and Vancouver. Calgary and Ottawa are also beefing up its public transit service in response to a higher demand from residents.

In fact, every major city across Canada has plans to focus on public transportation. It’s a response to increased population demands, and on minimizing the cost of economic and environmental resources.


Increased housing prices are a result of higher demand. In terms of housing near public transportation, this demand has increased because people want the convenience of walking to a subway or streetcar. This is an advantage because there is no requirement to pay for parking.

The millennial generation (those under 30 years old) also prefers to live close to public transportation. This generation of the population has made a conscious decision to drive less and walk more, thus, making them more dependent on public transportation.

This is especially true in the rental market where many renters opt to live in housing that is walking distance to a subway or streetcar route.

Transit is vital for building communities. It’s an essential service that provides mobility, creates jobs and takes cars off the street. As a result, congestion is reduced, fostering economic growth in the economy.

In terms of real estate prices, property values that are located close to public transit increase at a higher rate and have been shown to be more resilient to economic downturns.

A study created by the National Association of Realtors (NAR) and the American Public Transportation Association (APTA) concluded that “property values with good access to public transit remained much closer to their pre-recession levels than properties without access, even within the same city.”

This can also be seen in the short-term rental market. Properties listed on AirBnB and VRBO yield a higher return when they are located close to public transportation and to the downtown core.

As cities across Canada become more developed, it will be more and more difficult to commute downtown via car. Thus, properties that are located closer to the downtown and have good access to public transportation will continue to see growth in real estate prices.

Michael Rix is a co-founder of TurnKii, a Toronto-based company providing an all-in-one tool and service to support everyday landlords/real estate investors.

Source: Canadian Real Estate Wealth 25 Nov 2015

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