The first building in Toronto purpose-built for multiple occupancy was the St. George Mansions at 1 Harbord Street, directly opposite where the looming brutalist mass of Robarts Library would later sit.
In 1905, the intersection was part of a relatively quiet and affluent neighbourhood west of the University of Toronto campus.
Dappled sunshine filtered through young trees and little Model T Fords lined the curb. It was a “a district of substantial detached villas,” according to Richard Dennis in a 1989 research paper.
Dennis discusses the St. George Mansions and the real estate market leading up to their construction in detail.
As Dennis recalls, the permit for the building’s construction, the first of its type in Toronto, was issued in 1899 to A. W. McDougald, the president of the Improved Realty Co. of Toronto Ltd. He estimated the building would cost his company about $100,000 – the equivalent of about $2 million in today’s money.
The six-storey pressed brick and Bedford stone building, roughly “C”-shaped with a partially enclosed courtyard, took about five years to complete. Many of its 34 apartments had access to balcony space, though some were decorative Juliet-style affairs with heavy stone balustrades.
In 1904, shortly after it was finished, it contained 34 apartments and was home to 99 people, most of them wealthy middle-aged couples. Three barristers, two professors, two bank managers, and a director of an insurance company appeared on the occupancy list at that time.
Toronto was slow compared to other North American cities to build its first apartment block. The living concept had already appeared in Detroit, Cleveland, Buffalo, and other nearby cities, and was established in the form of “apartment hotels” in Boston and New York City in the 1850s and 1860s.
Apartment hotels were typically marketed at single, city-dwelling businessmen. Buildings such as the New York’s Stuyvesant Flats, built in 1869, had “between six and ten rooms each” and were let for $1,200 to $1,800 per year, according to Dennis.
The buildings of this type often had a central restaurant, laundry, recreational facility, barber, and dentist—complete miniature communities for the residents that turned a handsome profit for the owners.
The living concept became less communal and exclusive in the later decades of the 1800s. Apartment buildings that were constructed around this time were private and self-contained and became accessible to middle class families.
The apartment building concept wasn’t without its detractors.
Observers fretted that apartment living was unsuitable for families, prompting one Milwaukee landlord to offer free rent for every child born or marriage proposed in his building. “It is a shortcut from the apartment house to the divorce court,” Dennis quotes the author of Housing Problems in America, written in 1917.
The St. George Mansions were targeted firmly at middle class occupants when they were finished in 1904. Economic evidence suggested middle income families were less likely to move and were more numerous than the upper class renters, making them the perfect market to tap.
Toronto’s rents spiked massively in the years the building was under construction – up to 95 per cent between 1897 and 1906 – in part due to a sudden uptick in immigration. There were more new arrivals than the number of new homes could accommodate, making apartment blocks and attractive idea for developers.
The second Toronto apartment building was completed a year after the St. George Mansions on University Avenue. The stone, brick, and steel Alexandra was a larger building: 72 suites across seven floors with panoramic views of the city from its penthouse windows.
Like the apartment hotels of New York, the property included a communal dining room and appealed to middle-class renters.
By 1907, Toronto had its first apartment building directory that included Sussex Court at 389 Huron St. and Spadina Gardens at 41-45 Spadina Road, both of which still exist.
The St. George Mansions and the Alexandra are both sadly gone. The former survived until after the Second World War when it was repurposed as Trinity Barracks, the Toronto home of the Canadian Women’s Army Corps.
One contemporary account described the building as “cockroach palace,” suggesting time wasn’t kind to Toronto’s first apartment complex.
Today, U of T’s Ramsay Wright Zoological Laboratories building, built in 1965, occupies its former lot.
Condos reign supreme in Canada’s hottest cities. The majority of first-time homebuyers in Vancouver, Toronto and Montreal are picking condos, in part due to affordability challenges with single-family detached residential homes. Here are the numbers behind Canada’s condo explosion.
Do you want a condo or house? As a first-time homebuyer, this question is probably the first you’ll answer before starting your home hunt. Budget is a large factor, as is region: condos are king in urban markets like Vancouver, Toronto and Montreal, while houses are the go-to in Calgary and on the East Coast. Want to know what’s right for you? Take our “Condo or House?” quiz to shed light on your condo or house dilemma.
Condo or House?
Answer each question below, noting which answer you picked. Use our answer key and tally up your points to find out what’s better for you: condo or house.
Question 1: Can you afford to spend $500,000 or more on your first home?
Question 2: Do you work from home?
a) Yes, most or all of the time.
c) I may occasionally bring light work home.
Question 3: Are members of your household very busy with outside activities, or do you tend to be homebodies?
a) We’re very busy and spend a lot of time outside.
b) Most of our hobbies are home based.
c) It’s a mix in our household.
Question 4:Do you enjoy outdoor chores like yardwork, gardening and home maintenance?
a) Yes, I love working on my home and garden.
b) No way!
c) I’m not sure, but I’d consider it.
Question 5: Do you like to entertain friends and family in your home?
a) Absolutely! We love hosting big family dinners and dinner parties.
b) Sometimes, but we’re more into parties than sit-down meals.
c) Yes, but we prefer intimate get-togethers, like having a couple of dinner guests over at a time.
d) No, we prefer to host guests in a restaurant.
Question 6:What best describes your household composition?
a) Living solo and loving it!
b) We’re a couple, with no immediate plans for kids.
c) We’re a couple, getting ready to start our family.
d) We’re a full house of four or more, looking for room to grow!
Question 7: Minimalist living: yay or nay?
a) Yay: I am the queen (or king) of clutter-free living!
b) Nope: I like personalizing my space with my objects.
If you selected A, add 10 points.
If you selected B, add 5 points.
December 2017’s national average house price was $614,575. While houses can be had for less, even in big cities like Edmonton, Ottawa and Montreal, those who live in the Greater Vancouver Area or Greater Toronto Area will find that a budget of half a million dollars limits them to condos.
If you selected A, add 15 points.
If you selected B, add 5 points.
If you selected C, add 10 points.
Those who work from home should prioritize home office space; a spare bedroom is ideal. Others can get by with a small computer station or even converting a closet into a tuck-away office.
If you selected A, add 15 points.
If you selected B, add 5 points.
If you selected C, add 10 points.
The more time you spend at home – and the more members of the household that join you – the more home you’ll need for comfort.
If you selected A, add 15 points.
If you selected B, add 5 points.
If you selected C, add 10 points.
Owning a house comes with both seasonal tasks (shovelling snow, gardening, raking leaves, etc.) and weekly chores (taking the trash and recycling to the curb).
Avid home chefs and entertainers will benefit from a roomy kitchen and an open-plan kitchen/dining/living area. A large backyard would be a perk. Condos needn’t cramp your style if you have smaller get-togethers, or if you host your birthday bash in a party room, the perfect pop-up spot for canapés and mingling.
If you selected A, add 5 points.
If you selected B, add 5 points.
If you selected C, add 10 points.
If you selected D, add 15 points.
Although condo living is adaptable, at a certain point a growing family may be bursting at the seams and need more room to roam.
If you selected A, add 5 points.
If you selected B, add 10 points.
Decluttering will keep your smaller space looking sharp. While houses also look their best when belongings are edited, they do provide more hiding spots for those things you’ve been meaning to purge (but haven’t gotten around to yet!).
Tally up your points and find out whether a condo or house is better suited to your lifestyle.
If you scored:
35-55: Confirmed Condo-ista
Between price and lifestyle considerations, urban condo living is ideal for you. You’ll love the convenient, maintenance-free condo lifestyle and, of course, being in the heart of the city’s action.
60-80: Ambivalent Shopper
Aspects of condo living (convenience, price point) hold strong appeal for you, but you’re also considering a house you can grow into. It wouldn’t hurt to explore both options, plus townhouses, which offer a bit of each home type.
85-95: Hard-Core House Hunter
You’re looking to live large in a home that does your lifestyle justice – and you’re willing to pay a premium and put in sweat equity to do it. You’ll love turning your house into a home, with room for the creature comforts you cherish.
On the opening day of sales for the glitzy new condo project in downtown Ajax, the lineup of hopeful buyers spilled out of the sales office onto the sidewalk, wrapped around the building and extended hundreds of metres.
Inside, the office was cramped like a concert venue. Sales agents struggled to find flat surfaces on which to sign contracts, as investors and first-time home buyers clamoured to get in on the ground floor of one of the region’s most anticipated new developments.
The frenzy continued for three straight weekends and Central Park Ajax was sold out in less than a month.
Two-and-a-half years later, ground has yet to be broken, the project is mired in litigation and frustrated purchasers are asking for their deposits back.
Central Park Ajax is not officially dead — a court decision expected sometime this fall could save it — but it is on life support. For now it seems destined to become the latest failed venture by the LeMine Investment Group, a company headed by Tong (Thomas) Liu, a developer who dreams big but can’t seem to get anything built.
Liu’s failure to deliver his ambitious projects has left hundreds of purchasers in the lurch. Meanwhile, the 35-year-old is embroiled in at least 14 lawsuits that allege, among other things, that he misrepresented himself, owes millions to investors and doesn’t pay his bills. Earlier this year a judge found that Liu engaged in self-dealing and acted in bad faith.
Liu admits his lack of experience has led to some mistakes, but he says his intentions were always noble.
“It was never the intention to hurt someone, to hurt investors or to hurt individuals who have worked with us before,” he said in an interview.
Among the sites of Liu’s good intentions is an overgrown, empty lot at 3070 Ellesmere Rd. That’s where he says he still intends to build The Academy, a 26-storey condo tower marketed to investors as providing much-needed rental housing to the growing student population at the nearby University of Toronto Scarborough. Presales for the project sold out in 2014, but construction has yet to begin and the project seems irretrievably stalled, although it is not yet canceled. “We’re stuck,” Liu said.
Leveraging slick marketing in a nearly insatiable real-estate market, Liu convinced investors, municipal officials and eager purchasers to buy into his plans, despite having no track record in development. He used industry accolades and photo-ops with politicians to project credibility, but there was little substance behind his self-promotional sheen. While he tied up valuable land and collected millions of dollars worth of deposits without ever breaking ground, purchasers watched their money lose value. Many are now priced out of the market. Investors, meanwhile, are turning to the courts to recover their losses as land that could have helped ease the region’s housing crunch remains unused.
Liu isn’t the only GTA developer to strand purchasers. Twelve condo projects have been canceled in the Torontoarea since the beginning of last year, according to market research company Urbanation. Two massive developments in Vaughan were recently canceled, leaving more than 2,000 buyers in their wake and leading to calls to increase protections for purchasers. With rising construction costs making it harder for developers to secure financing — or reap their desired profits — more cancellations could be on the way. Liu, who struggled to secure financing for his Ajax project and won’t say if he ran into a similar problem with The Academy, insists his projects are merely delayed.
The Star reviewed court records, documents obtained by Freedom of Information requests and interviewed more than 20 people with connections to Liu and his companies (former employees, partners and consultants, as well as industry executives who worked with LeMine), many of whom spoke only on the condition of anonymity, saying they feared a lawsuit from Liu.
“His intentions were excellent,” said architect Clifford Korman, whom Liu describes as a mentor. “His experience and follow-through were not.”
“I didn’t trust him at all,” said Allan Duffy, the former mayor of Richmond Hill who said he was courted by Liu as a potential advisor. “I dropped him and told everybody I could to do the same.”
“I’ll be happy to get my money out and move on,” said Ayesha Karatella, one of the Central Park Ajax purchasers.
Ontario’s Progressive Conservative government said it is looking into increasing protections for consumers when developers don’t deliver.
In the meantime, Liu said he’s looking forward to his next project.
LeMine’s Richmond Hill office could be a metaphor for the company itself — impressive from a distance but mostly empty. Emblazoned with the company logo, it stands two storeys and stretches the length of half a city block, just west of Highway 404 on 16th Ave. LeMine has only a handful of employees, Liu said, but he rents the entire building — he wouldn’t say for how much — because he said he likes to be able to accommodate partners, investors and contractors. On a recent weekday afternoon the office was quiet. The front door was locked and there was no receptionist.
Outside of real estate, LeMine’s other undelivered promises include a billion-dollar trade deal to send Canadian canola to China and a commitment to invest in a private rail project in Ottawa. Neither materialized. Liu said the canola deal fell apart because the Canadian government did not get a required import certificate from China. The director of the Ottawa rail project said he and his staff declined to work with Liu after reviewing his company.
There is nothing tangible to which Liu can point that his company has successfully delivered. Asked to explain LeMine’s greatest achievement he mentioned the company’s investment philosophy and also a “flash mob” organized in Yonge-Dundas Square in 2014 to celebrate the 65th anniversary of Chinese independence. “We have over 50-million views on the Internet for a single event,” Liu said, adding that the video was shared widely on WeChat, a Chinese social media platform.
In a wood-paneled boardroom, Liu, who grew up in China’s Hunan province — “famous for spicy food and pretty girls” — said the purpose of his company is to “create a platform for Chinese capital.”
Liu first came to Canada when he was 18, completing his final year of high school at a private boarding school in Hamilton. He earned an undergraduate degree at the University of Toronto Scarborough before opening a small immigration consultancy. When one of his Chinese clients asked him about development opportunities in Canada he realized there was an opportunity to connect Chinese investors with Canadian real-estate projects. He started LeMine in 2011.
In January 2014, he paid $1.9 million to buy the land at 3070 Ellesmere Rd., on which he planned to build The Academy. Liu hired Kirkor Architects, Korman’s firm, to design the tower, Devron Developments as project managers and the Milborne Group as sales agents.
Like Central Park Ajax, the project sold out quickly and was heralded for its sleek design. LeMine and its partners won the “People’s Choice Award” in an online vote by the Building Industry and Land Development (BILD) Association. Liu was named the Chinese Business Chamber of Canada’s “Person of the Year in Real Estate Development and International Business.”
Despite the accolades and rapid sales, Liu did not begin construction. He was backed by foreign investors but undercapitalized and he couldn’t secure sufficient financing, according to interviews with three people familiar with the project.
That didn’t stop him from simultaneously taking on another major project. In September 2014, he signed a deal with another developer to take over a multi-phase condo development on land owned, in part, by the Town of Ajax. That project would eventually become Central Park Ajax, envisioned as the first step in a long-term revitalization of the downtown area.
Rob Chaggares, who worked for LeMine as an accountant in 2015 and 2016, said Liu’s “downfall” was taking on too many projects at once. “I thought: What are you doing? Just focus on trying to figure out how to get a shovel in the ground.”
Liu saw himself and his company in grandiose terms, Chaggares said. “I remember one time he said, ‘Let’s not talk millions, let’s talk billions.’ ”
Liu is alleged to have mortgaged The Academy property to finance the Ajax development, according to a statement of claim filed by an investor named Xiangdon Zhao, who said he invested $2 million in The Academy and has not been paid promised dividends. He accused Liu of making “negligent misrepresentations” and leveraging the undeveloped property to fund other projects. Zhao declined to comment through his lawyer.
Liu, in his statement of defence, denied the allegations made by Zhao, whom he said is not currently entitled to any dividends. Liu also insisted The Academy project is still alive and that Zhao’s funds were used exclusively for its development.
Another group of investors in The Academy sued Liu saying he breached their contracts, cannot account for their money and won’t return their deposits. A default judgement, issued in May after Liu did not file a statement of defence, awarded the investors $541,275.
Before these troubles with The Academy emerged, Liu was building his relationship with the Town of Ajax.
In the fall of 2015, he arranged a two-week trip to China for Mayor Steve Parish and three other Ajax officials. There were business meetings, but also sightseeing trips to The Great Wall, Tiananmen Square and other tourist spots. (The town covered the airfare and cost of visas for the mayor and staff, while LeMine covered all other expenses on the trip.)
LeMine’s design for the project — a 10-storey building comprised of two, six-storey residential condo towers on top of a four-storey podium — was fully approved by December 2015. As part of the agreement, LeMine was required to begin construction by July 15, 2017.
The Town of Ajax enthusiastically endorsed the project. They publicized it on their website, advertised it on municipal property and even had government officials appear in LeMine’s promotional videos.
Purchasers who spoke to the Star said the town’s official stamp of approval gave them confidence the project was secure. “The town so openly supporting it the way they did led us to believe that this was pretty much a surefire thing,” said Christopher Chong-St. Amant, who is among the purchasers awaiting the outcome of the court case before deciding whether to ask for their deposit back.
Before sales launched, 3,500 people had already registered on LeMine’s website, according to Liu.
Carl Hamilton, another Ajax purchaser, remembers the rush to buy when sales opened. “There wasn’t really time to second guess because there were droves of people behind you that were ready to sign.” Chong-St. Amant said the sales centre was “like a madhouse” on the opening weekend.
As with The Academy, Central Park Ajax was a marketing triumph and pre-construction sales of the 410-unit project sold out in a matter of weeks.
Problems arose almost immediately. Just weeks after selling out, Liu met with the mayor and said he wanted an additional five storeys — a 50-per-cent height increase.
“I indicated that this would not have my support,” Parish wrote in an internal email describing the conversation to his staff. Parish wrote that he told Liu adding the extra storeys after selling the presales would be “unfair to existing purchasers,” “contrary to our longstanding agreement” and “could cause political difficulties.” Liu “did not want to hear this,” Parish wrote. “(He) seems to think he can have whatever he wants.”
Korman, the designer on both projects, said he believes Liu once again “undersold the project versus the construction costs. … He got caught the same way in Ajax as he did on The Academy — without enough finances to carry the project through.” Liu said this is not true.
Liens started to appear on the property from unpaid tradespeople. Town officials grew increasingly concerned. In September 2016, lawyers for the town wrote LeMine a stern letter, saying they were spending too much time responding to “various lien claimants and their lawyers.”
In November, fewer than nine months before the deadline to begin construction, LeMine sought to amend the approved site plan by increasing the project from 10 to 12 storeys and from two to three levels of underground parking. (The town says in court filings they did not consider the material LeMine submitted to be a complete application because it was missing key elements.)
Meanwhile, LeMine’s sales centre was becoming a symbol for the project itself. Rain and wind had badly damaged the facade, while the company’s signage was torn and peeling. The place looked abandoned. If LeMine couldn’t spend “a couple grand” — as one town staffer put it — to clean up the sales centre, how would it build a multi-million-dollar condo?
Ajax’s chief administrative officer, Rob Ford, who has since retired, wrote Liu twice in the first four months of 2017 to request “urgent” meetings. Ford listed a litany of issues: LeMine still hadn’t fixed the sales centre; they were ignoring emails; liens had not been cleared and new ones were being added; and LeMine still hadn’t secured financing to begin construction.
Real estate agents who brokered sales began contacting the Town on behalf of their clients with concerns about the viability of the project. In one email a Royal Lepage agent whose name is redacted lists a number of questions for the Town, including: “Does the Town of Ajax regret doing business with LeMine Investment Group as much as my clients and I?”
Some skittish purchasers started asking for their deposits back.
Problems persisted throughout the summer of 2017 and when the July 15 deadline to start construction came and went without any progress, Ajax sent LeMine formal notice that it intended to invoke its right to repurchase the land. This triggered a 90-day grace period. There was nothing stopping Liu from beginning construction at this point, the Town’s lawyers would later argue in court. “LeMine had only to file for its building permit, but it did not do so.”
Even after the grace period elapsed, Ajax gave LeMine a new deadline of Dec. 8 to pay its creditors, bring its mortgages into good standing and secure construction financing. That deadline also came and went. On Jan. 11, 2018, the town publicly announced its plans to repurchase the land and formally end its partnership with LeMine.
Six days later, a frustrated Liu stormed into Ajax’s town hall and demanded to meet with Ford. Liu had been asked to leave the offices three months earlier because he had made staff “uncomfortable,” according to internal town emails. On this occasion he was escorted out, the emails said.
Speaking recently, Liu said there was “miscommunication” with town officials, but he wouldn’t elaborate. He said he did have concerns about the “economic feasibility” of the Ajax project last year, but it is “ready to go now” if the town was willing to work with him.
In March, Liu sued Ajax for $300 million for the “unlawful termination of a land development contract.” Liu said the town did not have the right to repurchase the property because they had not yet made a decision on his revised site plan application. The town said his application was incomplete. The trial was held this summer and a decision is expected before the end of the year.
“The town is blaming the developer, LeMine is blaming the town; I don’t really know where the blame lies,” said Karatella, one of the purchasers. “But I don’t care whose fault it is, someone should be accountable for the money I could have made on my investment.”
In an emailed statement to the Star, Parish, Ajax’s longtime mayor, said that when LeMine approached the Town “it presented a solid proposal which detailed a vision for the project, work being done in other jurisdictions, resources and a healthy financial picture.”
While Liu, the town and purchasers who haven’t yet pulled their deposits await the court’s decision, Liu is dealing with a slew of other legal problems.
Among the lawsuits filed against Liu are former consultants and contractors claiming he owes them money; investors who said he can’t account for their funds and won’t pay them back; and allegations that Liu misused investors’ money.
In one case, decided earlier this year, investor Valbonne-Canada won a judgment against Liu for more than $2.1 million. The case related to a proposed townhouse development in Thornhill, which was never built or pre-sold to the public. Liu later sold the undeveloped properties, but not before he “pilfered” the project funds for his own benefit, paid his own company $761,000 in dubious “project management fees” and “drained” the bank account that once held the investors’ money, according to Valbonne-Canada’s allegations.
In a scathing decision, Justice Thomas J. McEwen ruled against Liu and found him personally liable, saying he acted in bad faith, engaged in self-dealing, and showed “an utter disregard for the legal rights of the Applicants.”
The judgment included a “notice of garnishment” against Liu, but Liu said it is not being enforced and he is working on a settlement. Valbonne-Canada’s lawyer declined to comment.
In another case in which both Liu and his spouse, Yixuan Wang, are defendants, Toronto Capital Corp. and other creditors are seeking to take possession of Liu’s Willowdale home, which was cross-collateralized with the Ajax property, meaning a default on either mortgage would count against the other.
Liu and his wife allegedly defaulted on the Ajax mortgage in April 2017 and owe more than $2 million, according to court documents.
A default judgment was issued in February, but Liu said he didn’t lose his house and the lender was eventually paid. He said he didn’t default on the Ajax mortgage. He did not explain why the judgement said he did. “I consider this as one of the hard lessons we had to learn when dealing with Jewish people … Jewish lenders.” Asked to explain the comment, Liu said, “On the deals, they’re difficult. … Chinese (people) tend to believe people are good. Sometimes when we have that perspective we corner ourselves and they take advantage of our willingness.”
Liu declined to explain what happened or who specifically he was speaking about. Frank Mondelli, the principal broker of Toronto Capital Corp., declined to comment.
Another case alleged Liu and his staff told Chinese investor Miaogen Zhou that he could obtain permanent residency in Canada if he invested in The Academy. Zhou alleged he paid Liu $496,703, which he believed would be held in trust. Despite “repeated requests,” Zhou claimed Liu has “failed to provide a single piece of information … showing what happened to Zhou’s funds.” Liu has not filed a statement of defence, but he denied offering Zhou permanent residency in exchange for an investment.
Liu declined to discuss the lawsuits in detail but said he has never used investors’ money for other projects without their permission. He suggested litigation is simply the cost of doing business in the development industry. “I believe if you look at any of the big developers in Toronto you would find the same or even much more trouble than what we have now.”
Speaking generally, Liu admitted to making mistakes, attributing it in part to being a first-generation Canadian running a complex business. “Sometimes we learn in a hard way,” he said.
Others said Liu got in over his head. “His reach far exceeded his grasp,” said a former consultant to LeMine with extensive experience in the development industry. “But it wasn’t a minor gap — it was a big gap.”
In an overheated housing market, it’s often the purchaser who is most vulnerable when developers like Liu falter, said James McKellar, professor of real estate and infrastructure at York University’s Schulich School of Business. In the “race to sell out,” McKellar said, Liu probably set his prices too low and didn’t account for realistic construction costs.
But the cost to purchasers isn’t just financial, McKellar added. “If you buy something with the anticipation you’re going to get it in four years, you’re planning your family, etcetera. The interest rate is a very small part of it. It really sets you back.”
For Karatella, 29, the two-bedroom condo unit she purchased in Central Park Ajax was going to be her first home. She hasn’t asked for her deposit back yet, but if the project doesn’t go ahead she isn’t sure what she’s going to do. “To get something comparable to what I purchased is $100,000 more,” she said. “It’s totally ridiculous that my money is just sitting there and nobody’s accountable for it.”
McKellar said there should be penalties for developers who can’t deliver. “People are paying the price for this exuberant industry,” he said. “This is why governments have to step in.”
NDP housing critic Suze Morrison, who represents the provincial riding of Toronto-Centre, agreed there should be more protections for condo purchasers, but she didn’t think the solution was penalizing developers. Morrison said the NDP is looking into possible reforms to the Tarion Warranty Corporation, but did not provide specific details.
Progressive Conservative MPP Todd Smith, the minister of government and consumer services, said in an emailed statement that his government is looking into the issue “to determine how best to strengthen the protection of consumers.” Smith did not provide specifics, except to say that the government will work with “industry, stakeholders and consumers as we determine next steps.”
Liu’s court troubles persist.
In June, a numbered company which is Liu’s current partner in The Academy — his original partner cut all ties with the project in 2016 — got a court order to temporarily freeze the property after alleging Liu kept trying to borrow against it without the company’s consent, according to the judgement. Liu said the property at 3070 Ellesmere was not frozen. He did not explain why there are documents showing otherwise. Property records show there are three mortgages on the property totalling $13 million. Liu said the actual amount owing on the property is less than that.There is also a $3.95 million construction lien.
Sitting in his boardroom, Liu agreed his company is in trouble.
“Yes, I am,” he said. “(But) you say trouble, I say it’s difficult matters that we need to handle. We’re in business. Every business has difficulties and we need to manage them.”
Some of Liu’s former partners said his reputation within the industry is in tatters, but Korman said he would be willing to work with Liu again — as long as he’s paid upfront. “I’m not stupid.”
Liu said there are still lots of good things happening with his company. New investors are coming in every month, he said, and he’s working on launching a new project. He declined to discuss it.
Source: Toronto Star – By BRENDAN KENNEDY Investigative Reporter Thu., Sept. 27, 2018
Whether you’re a first-time buyer or a seasoned investor, there are new rules in 2018 that you will want to understand if you plan to buy a condo in Toronto. In this blog post we are going to explain the new rules and give you some tips to navigate them.
The 2018 condo market at a glance:
What are the new rules and changes?
We spoke with James Harrison, President of Mortgages.ca, to give us a full understanding of what to expect this year.
The new rules are simple:
As of January 1st, 2018, the Bank of Canada’s “Universal Stress Test” is in effect.
The buyer must now qualify for their mortgage based on the 5yr posted rate (4.99% today) or their contracted rate plus 2.00%, whichever is greater.
What does it mean for buyers in 2018?
“In my opinion, this will negatively impact one’s buying power by approximately 15-20% on average,” says James Harrison.
This stress test is an expected addition to the federal government’s measures to limit over-leveraged buyers from entering the housing market. In February of 2016, the federal government raised the minimum down payment from 5% to 10% for properties between $500,000 to $1 million. As we discussed in a previous blog post about those down payment rules and changes, the aim was to “reduce taxpayer exposure and support long-term stability.”
The newest round of stress tests is also about creating a buffer zone, but it applies to uninsured mortgages (borrowers with 20% down payment). Effectively, everyone applying for a loan through a regulated lender will now be stress tested. In a previous post, we explained in plain words how your buying power may change under the new mortgage rules.
“This will have a huge impact on some buyers but not all,” says James Harrison. “I believe this will negatively affect first time buyers as they tend to have lower incomes and also carry some debt from school. With one’s buying power negatively affected by 15 to 20% you would think this will mean prices will come down. I would be surprised if prices came down more than 5% in 2018.”
“For the well qualified buyers (those with higher incomes and little to no debt) 2018 will most likely see less competition, which could mean more of a buyer’s market. We have not seen this in a very long time in the GTA.”
“If you purchased a property prior to January 1st, 2018, you can still qualify for a new mortgage based on the old mortgage rules (with some lenders). Some top Brokers may also have lenders that can still qualify clients under the old rules (or at least using the discounted 5 fixed rate of 3.29% for example) and a 25yr amortization. This can increase one’s buying power by about 10- 15%.”
“If a buyer bought a property (same for pre-construction) prior to October 2016 (they could also qualify for an insured mortgage based on the rules prior to the first stress test for insured buyers). This is a huge benefit for some buyers of pre-construction units.”
What to do if you’re not approved for a mortgage under the new rules?
“If a buyer no longer qualifies to purchase a property they want they may have to look for a strong co-borrower to sign on to the mortgage to help increase the income and bring the debt services ratios in line. Unfortunately, this may mean a lot more potential buyers will now be looking for a rental property, which in itself is already very challenging in Toronto.”
Alternatively, there are mortgage lenders that operate outside The Office of the Superintendent of Financial Institutions (OSFI). The ‘stress-tests’ apply only to lenders that are regulated under OSFI, such as the Big Five banks, while some second-tier banks and credit unions fall outside the new rules. These lenders have often been painted as “shadow lenders,” but they do fill a gap in the home buying process.
For buyers who don’t approve under the new mortgage stress tests, these non-regulated lenders can be a viable option and many of them offer rates competitive with top tier banks. One thing to keep in mind, however, is that non-regulated lenders are still hoping to limit risk, which means they tend to prefer borrowers with strong credit history. If your credit is weak, you may face higher rates on your mortgage. As always, it’s best to do some research.
“It is more important than ever for each and every buyer (or anyone looking for a mortgage) to connect with a very experienced Mortgage Broker. Going to your local bank branch is simply not a smart option anymore and has not been for years, but the new stress test will show this even more. A good Mortgage Broker will be able to help explain this fully and find you more options. Even if you are a well-qualified buyer you may not qualify with your bank but you may still qualify for excellent schedule A products with another lender. Do not give up until you speak with a good broker.”
Why is the government implementing these new mortgage rules?
“The reality of these most recent mortgage rules is that the federal government has serious concerns with the level of personal debt loads in Canada. So, they are continuously coming out with ways to help make sure everyone can truly afford the mortgage they are taking on. I personally feel this was too much, and I would not be surprised if the government is forced to pull this back within the next two to three years.”
“I am optimistic that 2018 will still be a strong year in real estate, but realistically a lot of buyers may be out of the market completely. I expect that 2018 will most likely be the year of mom and dad providing the down payment and co-signing for the mortgage as well.”
“I strongly encourage each and every buyer to contact a well-qualified and experienced mortgage broker for all of their mortgage needs, whether it is a purchase, refinance, or renewal.”
Mississauga has become the GTA’s largest condo hub after Toronto, and its torrid pace of residential, infrastructure and amenity development are conspiring to make it ripe for investment.
In tandem with the Places to Grow Act, Mayor Bonnie Crombie has recalibrated the city’s growth plan to quickly turn it into an urban hub. Mississauga’s city centre already has a dazzling skyline, and it’s expecting 23 new mixed-use condominium towers.
Major builders like Daniels, Amacon, Camrost and Solmar all have major projects going up there that promise to bring life to what’s been a sleepy downtown. However, without a crucial piece of infrastructure, some of these developments might never have been conceived.
“The timing is largely a result of the LRT breaking ground next year,” Crombie told CREW. “It is 20-kilometres long with 22 stops, beginning in Port Credit, and then looping around downtown where there will be four stops. It will pull into the transit terminal – the second-biggest in the GTA – then go into Brampton.”
The city centre in Canada’s six-largest city has long been built around Square One Shopping Centre, which just received a major facelift and extension, but there are newer arrivals. Sheridan College has two campuses in or near the city centre, with a third in planning stages, and University of Toronto Mississauga isn’t very far away, either. Apartment buildings in the area are being outnumbered by condos, and students will naturally rent them.
Over the next two decades, Peel Region is expecting 300,000 new residents and 150,000 jobs, of which 60% are projected to be in Mississauga.
Zia Abbas, owner and president of Realty Point, a brokerage that’s grown to 26 franchises in only two years, says the cost per square foot in Mississauga’s condos make investing there a no-brainer.
“The average of any new launch in downtown Toronto is around $1,000 (per square foot),” he said, “with the cheapest I’ve seen in Liberty Village starting around $850 to $900 per square foot before parking. In Mississauga it’s between $640 and $670, parking included.”
Abbas says the LRT will add substantial value to the city centre’s condo cluster, and added that Mississauga has other hot spots too, like Erin Mills and the Hurontario and Eglinton neighbourhood.
“Compared to downtown Toronto where eight out of 10 people rely on transit infrastructure, in Mississauga it’s five out of 10, I’d say.”
But as Crombie’s vision for an urban Mississauga materializes, that number could start rivalling Toronto’s.
When it comes to Toronto condo prices, location really is everything. Sure, buying any unit in the city is going to be expensive, but when you see how prices vary based on the TTC subway map, it’s obvious that Line 1 reigns supreme.
Toronto realtor Davelle Morrison recently put together this map of condo prices by TTC stop, which reveals the area around Summerhill Station as the most expensive place in the city. It’s followed closely by Museum, Bay, Bloor-Yonge, and Rosedale as other high cost areas.
On the flip side, the most reasonable condo prices in Toronto can be found in less dense areas of the city like Scarborough and the eastern portion of North York, which includes stations like Wilson, Sheppard West, and Lawrence West.
Also interesting are the TTC stops that yield no data. The map charts condo prices within 0.3 kilometres of each station, which means that there are plenty of blank entries because there just aren’t condos within the radius under examination.
When you think about it, that’s kind of troubling in terms of Line 2. There are too many stations that lack the kind of density that urban planners laud as key to successful city building.