Tag Archives: millennials

Condo Nation

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.

Source: Genworth.ca

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Condo or house: What’s right for you?

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?

  1. a) Yes.
  2. b) No.

Question 2: Do you work from home?

  1. a) Yes, most or all of the time.
  2. b) No.
  3. 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?

  1. a) We’re very busy and spend a lot of time outside.
  2. b) Most of our hobbies are home based.
  3. c) It’s a mix in our household.

Question 4: Do you enjoy outdoor chores like yardwork, gardening and home maintenance?

  1. a) Yes, I love working on my home and garden.
  2. b) No way!
  3. c) I’m not sure, but I’d consider it.

Question 5: Do you like to entertain friends and family in your home?

  1. a) Absolutely! We love hosting big family dinners and dinner parties.
  2. b) Sometimes, but we’re more into parties than sit-down meals.
  3. c) Yes, but we prefer intimate get-togethers, like having a couple of dinner guests over at a time.
  4. d) No, we prefer to host guests in a restaurant.

Question 6: What best describes your household composition?

  1. a) Living solo and loving it!
  2. b) We’re a couple, with no immediate plans for kids.
  3. c) We’re a couple, getting ready to start our family.
  4. d) We’re a full house of four or more, looking for room to grow!

Question 7: Minimalist living: yay or nay?

  1. a) Yay: I am the queen (or king) of clutter-free living!
  2. b) Nope: I like personalizing my space with my objects.

Answer key:

Q1:

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.

Q2:

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.

Q3:

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.

Q4:

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).

Q5:

If you selected A, add 15 points.

If you selected B, add 5 points.

If you selected C, add 5 points.

If you selected D, add 5 points.

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.

Q6:

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.

Q7:

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!).

Results:

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.

 

Source: Genworth.ca

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Kid-friendly condo features

Condo living: it’s not just for young single people anymore. In big cities like Toronto and Vancouver, many millennial parents are choosing to set down roots in vertical communities, raising their kids in the dynamic environment they love. As a result, developers are starting to pay attention to the priorities of this up-and-coming homebuying demographic. Is city living suited to your family’s lifestyle? Here are six features to look for when hunting for a family-friendly condo.

FAMILY-FRIENDLY FEATURE NO. 1: More bedrooms

As recently as 2011, many condo-dwelling families had to rely on design hacks to carve out “bedroom” space in a smaller unit. That’s because during the 2001-11 period, less than one per cent of condos on the Toronto market had three bedrooms; today, for example, one major developer dedicates, on average, about 10 per cent of its new buildings to three-bedroom units, and roughly 40 per cent to two-bedroom units. Similar changes have been afoot in Canada’s other major condo markets. The City of Vancouver mandated in 2016 that all rezoning projects hit a target of 35 per cent “family units,” defined as units with two or more bedrooms. In Montreal, developers are also reaching out to the urban family demographic, with one Habitat Design Award-nominated project incorporating not just three-bedroom but even four-bedroom units. Family-sized condos are now easier to find, which means it is less likely you’ll have to use bookcases and curtains to fake out an extra bedroom.

FAMILY-FRIENDLY FEATURE NO. 2: Better storage

A tiny hall closet just won’t do when you’ve got strollers, trikes and other gear to stash. If you’ve got a growing family, maximum closet capacity is key. One way developers max out storage space is to design smaller bedrooms; that’s a small sacrifice to make if it makes getting in and out of your unit easier each day.

FAMILY-FRIENDLY FEATURE NO. 3: Indoor play zones

Just as the party room is a grown-up condo mainstay, indoor kids’ rooms are becoming hot tickets in family-oriented condo developments. With activity-friendly flooring, furniture and play stations, these indoor play centres are the perfect spot to hang out during a rainy morning or to meet up when you think your home is too messy for a play date!

FAMILY-FRIENDLY FEATURE NO. 4: Outdoor play areas

Many planned communities include parks and playgrounds in their adjacent outdoor space. Other kid-pleasing features include gardens, fountains, splash pads and pathways where kids can bike, in-line skate and play safe from car traffic. Who says you can’t have your own backyard if you live in a highrise?

FAMILY-FRIENDLY FEATURE NO. 5: Parking

If moving your brood around includes four wheels, you’ll be looking for a parking spot. Parking is a hot commodity, and many big-city condo buildings have significantly fewer parking spots than they do units. Keep in mind that a parking spot isn’t just a one-time purchase; it’s subject to additional monthly maintenance fees. If you’re an occasional driver, check the building’s proximity to a car share location. Avid cyclist? Look for a building with a secure bike room to avoid condo clutter and cut the risk of bike theft outdoors.

FAMILY-FRIENDLY FEATURE NO. 6: Location, location, location

One of the perks of urban living is proximity to work and big-city attractions. There’s something appealing about walking to the museum on a Saturday morning, or picking your kids up at daycare after work and leisurely strolling to a nice restaurant for dinner. Consider walkability and access to public transit when condo shopping. Trimming your commute and streamlining your day makes family life less stressful and way more fun.

Source: HomeOwnership.ca

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MultI-generational home purchases

Buying a house with Mom and Dad? In competitive housing markets, this seemingly unconventional choice can be a smart strategy for attaining homeownership sooner. That said, any financial partnership requires planning. Avoid conflict by clarifying roles and formalizing financial agreements. Here are two common shared homeownership scenarios, along with tips for making a financial arrangement that works for everyone.

FAMILY HOMEOWNERSHIP SCENARIO NO. 1:
Housing your child during university

Why: Renting can be expensive. Some parents may prefer to buy a home for their child while they attend university or college. This option allows families to build their own equity, rather than pay a landlord rent for three to five years or more.

Important considerations:
  • Size & lifestyle: Choose a home that is appropriate for a single young adult, such as a turnkey condo or small bungalow.
  • Future plans: What will happen once your child graduates? Will the property be sold? Will your child take over the mortgage payments? Discuss future plans openly to avoid unpleasant surprises.
  • Written agreement: Use a written agreement to solidify co-ownership responsibilities and expectations, including who is financially responsible for specific homeownership expenses (i.e., mortgage, utilities, taxes and so on), what happens if payments are missed, and what happens if either party wishes to exit the financial partnership.

Ask your mortgage professional about… Genworth Canada’s Family Plan program. This program enables qualified buyers with excellent credit to assist an immediate family member with their home purchase. To qualify, your dependent must have good credit, even if they lack sufficient income to meet typical mortgage qualification standards. The home must meet certain quality criteria, and qualified buyers can make their purchase with as little as five per cent down.

FAMILY HOMEOWNERSHIP SCENARIO NO. 2:
Parents and adult children living together

Why: Forget fleeing the nest. Increasing numbers of adult children are buying a bigger nest with Mom and Dad (maybe even Nan and Gramps too!). According to the 2016 census, a whopping 403,810 households across Canada are multi-generational households with at least three generations of the same family under one roof. Whether you’re inspired by tradition, cost savings or convenience, shared homeownership can be a prudent and fulfilling decision.

Important considerations:
  • Size & lifestyle: Upfront, family members should be on the same page about living arrangements. Will this be a one-household home with shared living quarters? Or will the property be divided into suites, with each household residing in a self-contained unit?
  • Future plans: Involve the whole family in discussions around shared homeownership and include adult siblings who are not buying in with you. Be frank about family assets and the future care needs of older relatives. Is there an expectation that you shoulder this responsibility due to proximity?
  • Written agreement: As with any shared homeownership situation, clarify co-ownership responsibilities and expectations in a written agreement.

Ask your mortgage professional about… Genworth Canada’s Progress Advance program, which helps qualified homebuyers finance a custom-built home with as little as five per cent down. Dual master suites? A bachelor-size nanny suite? An approved home builder or contractor can create a house perfect for your multi-generational family’s needs.

Or, if you’d prefer to renovate a resale home, ask about Genworth Canada’s Purchase Plus Improvements (PPI) program, which can finance home improvements and combine them with your mortgage in one easy mortgage, also with as little as five per cent down. Check out our PPI calculator and guide at homeownership.ca/ppi.

Finally, if your family has immigrated to Canada within the last five years, consider Genworth Canada’s New to Canada program. Don’t let a lack of Canadian credit history derail your family’s homeownership dreams. The New to Canada program can help qualified borrowers who have full-time employment and a strong history of rent and utility payments in Canada buy their family home with as little as five per cent down.

Source: HomeOwnership.ca 

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Here’s What’s Happening With the Massive Britannia Farm Redevelopment Plan in Mississauga

For years, no one quite knew what would become of the 200-acre historical agricultural property known as the Britannia Farm.

Now, it looks like plans to transform the property are closer to becoming reality.

City of Mississauga council approved changing the zoning of a 32 acre parcel of land located on Britannia Farm from institutional to mixed use. That means that the city and the Peel District School Board (which owns the farm) are now free to transform the parcel of land located on the northwest corner of Hurontario Street and Bristol and move forward with a proposal to have the land include a variety of housing types, including affordable housing.

https://www.facebook.com/plugins/video.php?href=https%3A%2F%2Fwww.facebook.com%2Finsauga%2Fvideos%2F1945506232186085%2F&show_text=0&width=476The opportunity will now allow the PDSB to either look at selling or leasing the parcel for funding.

The entirety of the Britannia Farm is currently zoned as institutional, with the exception of the Cooksville Creek.

This specific parcel on the Farm has been the subject of discussions for a number of years, as approval has been necessary for a variety of components to prepare the lands. Back in 2010, the Heritage Advisory Committee needed to give the PDSB approval to move three heritage properties from the 32 acre parcel to another area of the farm.

The historic properties on the site include the red brick Britannia Schoolhouse (c. 1870), Britannia Farmhouse (c. 1860 and 1870), two-storey Gardney-Dunton House (c. 1830) and Conniver Barn (c. 1880).

The purpose of moving the heritage buildings is to clear land in order to develop housing, as well as to move the properties to a section of the farm that will be used for educational purposes. The historical portion will also include an improved Farm lane, a historic corridor that links the various zones together and connects the Farm to Hurontario Street.

However, a report at the Heritage Advisory Committee on April 10 showcased images that suggested the heritage buildings could remain where they are. In these images, buildings were simply built around the heritage properties. Councillor Carolyn Parrish expressed displeasure with the idea of building around heritage buildings and said that it would be something that could be devastating to the significance of the properties.

Most community members who attended a public meeting back in October 2017 did approve of the idea of moving the heritage properties to another place on the farm. Parrish says that, at this point in time, approximately 99 per cent of the individuals within the community are convinced that this is a good project.

As for what will happen going forward, the PDSB will look at either selling the land to a developer or leasing the lands for continuous revenue streams. Once this happens, the city will receive studies and agreements for review. New housing is a possibility, as these may include a draft plan for subdivisions and/or condos and a site plan.

There will be other reports regarding stormwater management, a feasibility study and an environmental assessment among other documentation.

Phylis Hampshire, a resident that came forward during question period, asked if the citizens of Mississauga can somehow be assured that this will be the only proposed development on the land.

It’s a very special piece of land in the middle of Mississauga, it would be nice if it could stay open,” says Hampshire.

We adopted [the land] as a future outdoor education centre. The current Peel Board Chair has done everything in her power to keep that land the way it was intended by King William the Fourth, which was for the benefit of the children of Peel,” says Parrish. “As far as selling any more pieces of land off, it’s not going to happen. This piece at the front is just so they can finance 168 acres of outdoor education centre.”

Historical properties on the farm

The development of these lands is important, as they’re located near the future Hurontario LRT stop and the soon-to-be-reinvigorated Hurontario Street corridor. For that reason, the city says the parcel must be developed with attention to its surroundings. In short, it’s an attractive yet sensitive project. Since the parcel surrounds 170 acres of historic and cultural landscape and the connection to downtown, the development should include a number of criteria discussed in the Master Plan.

The Master Plan recommends student-focused environmental and agricultural programs, the establishment of landscape zones, a development parcel that will be 32 acres in size and phased public access in partnership with the city of Mississauga.

It is recommended that the proposed development include open spaces, parks, trees, and “a place to foster community.” For example, it is recommended that parking for any of the proposed developments be primarily underground and out of view from the public realm.

One issue that came to light was a part of the report that included development of a road within the park. Parrish cautioned staff at the city, saying “an area of caution I would give to [city staff], is when you talk about the potential opportunities for future road construction, it better not be on the 168 acres [of outdoor educational space].”

Since the Britannia Farm has just received approval for the mixed use zoning, the city has taken the first step in what could be a long process. In the future, there will be more discussion on the planning of the site with developers and potential for sale of the land.

It will be interesting to see what unfolds next.

It’s a very proud day for me,” says Parrish who been on this project since she was a trustee on the school board with Councillor George Carlson.

Janet McDougall, chair of the public board, was acknowledged at the meeting for her significant contribution to the project over the years, and with McDougall retiring this year, it will be a legacy project for her as she enters retirement.

Janet I want to congratulate you myself for all your years of service, thank you, and also for protecting this jewel that our residents are very protective of as well. It’s a piece of land that people don’t want to see altered in any way, you’ve respected that and we thank you for your plans,” says Mayor Bonnie Crombie.

Editor’s Note: A previous version of this story misidentified Janet McDougall as Janice Baker, Mississauga’s city manager. We regret the error.

Source: Insauga – by Melissa Stolarz on April 22, 2018

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Rent control is doing little to curb Toronto’s soaring rents

Haider-Moranis Bulletin: In the long run, rent controls reduce the growth in available rental stock, which further accelerates the increase in rents

In April 2017, Ontario’s then-Liberal government introduced the Rental Fairness Act, which expanded rent control to all private rental units.Cole Burston/Bloomberg

Do stricter rent control laws slow the increase in residential rents? Housing advocates and left-leaning governments believe they do. However, recent data from Ontario appears to offer further proof that this is not the case.

In April 2017, Ontario’s then-Liberal government introduced the Rental Fairness Act, which expanded rent control to all private rental units. The Act restricted rent increases to 1.5 per cent in 2017 and introduced additional provisions to protect tenants from being evicted.

The Act was enacted to protect against “dramatic rent increases.” Chris Ballard, then the Minister of Housing and Poverty Reduction, claimed that the Act would ensure that Ontarians “have an affordable place to call home.”

 

The Toronto Real Estate Board’s (TREB) Rental Market Report for the second quarter of 2018 revealed that the Rental Fairness Act has had no observable impact on market-based rents, which grew at similar rates from 2017 to 2018 as they did from 2016 to 2017. In fact, three-bedroom apartments experienced a significant increase in average rents in 2018.

TREB’s data is based on its rental listing service for the Greater Toronto and surrounding areas. From April to June 2018, almost 12,000 apartments were listed while 8,497 were leased. One and two-bedroom apartments constituted the largest segments of rental units. Also, almost a thousand townhouses were listed and 665 leased for the same period.

TREB data provides more of a market-based view of the rental market than what has been reported by the CMHC. Unlike TREB, which lists market-based units (condominiums and townhouses) that are primarily owned by private investors, CMHC’s reporting of rental markets is largely for, but not restricted to, purpose-built apartment rentals.

Despite the differences in rental stock between CMHC and TREB, even CMHC’s data reveals that instead of a break, rental rates accelerated in 2017. For instance, rents for two-bedroom units increased by 3.3 and 3.2 per cent in 2015 and 2016 respectively but jumped 4.2 per cent in 2017. If proponents of stringent rent controls were hoping for a decline in rent acceleration, it didn’t happen.

The purpose-built rental universe has remained steady across most of Canada. In the Greater Toronto Area (GTA), the number of purpose-built rentals has remained around 330,000 units for more than a decade. During the same time, the number of rental condominiums in the GTA increased from under 50,000 to more than 100,000 units.

CMHC data for October 2017 reported average rents for two-bedroom units at $1,392 and $2,263 in purpose-built rental buildings and condominium apartments respectively. In comparison, TREB reported the average rent for two-bedroom condominium apartments in the fourth quarter of 2017 to be $2,627. Even for the condominium apartments, TREB reports higher rents attributed most likely to the higher quality of the underlying stock.

CMHC reported rents for purpose-built rental buildings are significantly lower because of their less than ideal location and dilapidated condition, a result of age and deferred maintenance. These buildings have remained under rent control for decades, and their owners are disincentivized to improve the quality of the rental stock. TREB data, by contrast, is based on privately owned rental condominiums whose owners, until recently, were incentivized to maintain their units in a state of good repair.

Since April 2017, condominium rentals and other dwelling types have also come under the rent control regime, thus creating the same disincentives for structural improvements of units as the ones observed for the purpose-built rentals.

The CMHC data reveals that, as expected, average rents in older buildings were lower than rents in newer buildings. Furthermore, rents on average are higher in the high-density urban core than the low-density suburbs, making suburbs significantly more affordable to rent than in or near the downtowns.

With high turnover rates where new tenants are not subjected to rent restrictions, rent controls are ineffective tools for addressing rapid rent increases. The average rent for units in purpose-built rentals and condominium apartments has risen far above the stipulated rate since the Rental Fairness Act was enacted. In the long run, rent controls reduce the growth in available rental stock, which further accelerates the increase in rents.

Rent stability is achievable primarily by increasing the supply of the rental stock. This requires changes in regulations to facilitate, instead of hindering, new residential development.

Murtaza Haider and Stephen Moranis September 5, 2018

Murtaza Haider is an associate professor at Ryerson University. Stephen Moranis is a real estate industry veteran. They can be reached at www.hmbulletin.com.

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Buyers of new condos get twice the space in Waterloo as in Toronto

Cities west of GTA gain ‘notable traction’ in sales in first six months

New condominium buyers deterred by soaring Toronto prices are apparently venturing further afield to Hamilton, Kitchener and Waterloo, which offer more bang for their buck and the promise of new transit links that will improve accessibility.

Sales of new condominiums in these areas gained “notable traction” in the first six months of the year as regional economic activity picked up and Metrolinx moved forward with its $43-billion expansion plans, according to Altus Group, a market intelligence firm.

In Kitchener, sales between January and June rose to 806 units, up 93 per cent from the same period a year earlier, while 262 units were sold in Waterloo, a 51-per-cent jump. Though sales fell more than 20 per cent in Hamilton to 360 units, the city’s condominium market remains one of the most active outside Toronto, suggesting a continued flight to affordability, said Ray Wong, vice-president of data operations at Altus.

 

“The amount of demand in downtown Toronto, especially in the office market, has been well known for the last number of years and with that, demand for housing has steadily ratcheted up,” he said. “As these outlying areas are developed with more infrastructure in terms of restaurants and retail, it’s made them a lot more attractive.”

Those areas offer another powerful draw: the chance to secure a much larger space with a limited budget.

A buyer in Toronto with $500,000 to spend would likely have to settle for a one-bedroom unit of about 521 square feet, said Kruti Desai, manager of national research insights at Altus. But the same budget in Waterloo would secure a two-bedroom unit of 967 square feet.

Those in search of even more space could consider Barrie, Brantford, Cambridge, Guelph, Kitchener and St. Catharines, where $500,000 will buy a two- or three-bedroom unit with more than 1,000 square feet of space, she said.

“Individuals can get more bang for their buck when looking outside the Toronto market,” Desai said, adding that Hamilton, Kitchener and Waterloo are seeing the greatest amount of activity.

Momentum in Kitchener-Waterloo was linked both to affordability and to the economic growth kickstarted by Kitchener’s innovation hub and Waterloo’s Idea Quarter, a growing cluster of startup and technology companies operating in former BlackBerry Ltd. buildings.

Located close to the University of Waterloo campus and a future light-rail station, the Idea Quarter has attracted a range of firms — including OpenText Corp. and Auvik Networks Inc. — that “are now successfully competing for talent against Greater Toronto Area companies, helping stimulate condominium development,” Altus said in its report.

Hamilton, meanwhile, is expected to remain an attractive place to live for professionals working in Toronto, especially those who can take advantage of flexible working arrangements, Altus said.

A spike in new condominium sales in the city during the first three months of the year was credited to Television City Phase I, a 30-storey tower released in May 2017 that has since sold 80 per cent of the units on offer. Phase Two of the project, released in March, had sold 50 per cent of its units by the end of the second quarter.

Source: Financial Post – Naomi Powell August 8, 2018

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