the toronto real estate blog

July: More Records Broken

2007-08-04T13:28:00.000-05:00

August 2, 2007 -- TREB Members reported 8,912 total sales in July, 26 percent ahead of the 7,082 sales recorded in July of 2006, and an all time record for the month.

Furthermore, July makes the fourth month in a row that sales have broken monthly records. "The local resale market is as healthy as it has ever been," said TREB President Donald Bentley. "Not only are we running 13 per cent ahead of last year's January - July total of 52,682, we are running 14 per cent ahead of the seven month total for 2005, which became our best year ever."

While sales have set a blistering pace, prices eased in July, down two per cent to $366,012 from June's average of $373,719. "This decline is seasonal in nature," said the President. "Prices tend to ease in July/August as potential homebuyers and sellers go on holiday." He went on to note that the year-to-date average, at $373,326, was up five per cent over the same time-frame in 2006.

Breaking down the total, 3,424 sales were reported in TREB’s 28 West districts and averaged $347,978; 1,590 sales were reported in the 14 Central districts and averaged $470,464; 1,797 sales were reported in the 23 North districts and averaged $392,360; and 2,101 sales were reported in TREB’s 21 East districts and averaged $293,819.

NEIGHBOURHOOD CORNER

North York

There were 5,115 sales in the North York area (C04,C06,C07, and C12 through C15) during the first seven months of 2007, up 12 per cent over the 4,583 sales recorded during the same time-frame in '06. The average price came in at $488,663, a five per cent increase over last year.

Resale market shows strongest summer performance

2007-08-04T13:15:00.000-05:00

August 3, 2007 -- Last month, the local resale market was 26 per cent more active than during the same time in 2006, recording a July record 8,912 sales, TREB President Donald Bentley announced today.

"Currently, year-to-date transactions stand at 59,339, up 13 per cent over the first seven months of last year," Mr. Bentley said. "And with June and July both setting records, we are now seeing the strongest summer performance by our local resale market since records have been kept."

Toronto's Riverdale area (E01) saw a 73 per cent increase in transactions over June 2006, fueled by increases in almost every house type.

Strong sales of detached homes and condominium apartments in the South Humber part of Etobicoke (W07) contributed to a 116 per cent increase in total transactions over the same time last year.

A large increase in condominium apartment sales was responsible for a 40 per cent increase in total sales for North York (C14).

Transactions in Richmond Hill (N04) increased 77 per cent over July 2006, due to a 100 per cent increase in attached/row-house sales and strong performances in most other house types.

"The market is building on some very strong economic fundamentals," noted the TREB President. "And low borrowing costs have kept homes within reach of a broad segment of the population."

Summer Market Begins with a Bang

2007-07-08T16:25:00.000-05:00

July 6, 2007 -- In June, the Toronto Area resale housing market was nearly 20 per cent more active than a year ago, Toronto Real Estate Board President Donald Bentley announced today. The 10,451 sales recorded in the month were also just shy of the 11,146 sales that made May TREB's most active single month ever.

"This market is very healthy and shows no signs of letting up," Mr. Bentley said. "The strong spring we've seen is carrying through to the summer months, and that has helped to push this year's total activity past 2006 by
nearly 11 per cent."

Toronto's Danforth / Woodbine Heights area (E03) saw overall transactions jump by 32 per cent compared to last June, with gains across most housing types.

Strong sales of condominium apartments and town homes in Mississauga's Northwest Cooksville (W15) area contributed to an overall increase in activity of 57 per cent compared to June 2006.

Detached home sales in Bayview / Hillcrest Village (C15) nearly doubled as overall transactions increased by 39 per cent compared to June of last year.

Just north of the city, Richmond Hill's southern portion (N03) saw a 48 per cent increase in transactions compared to the same timeframe one year ago.

"The current market is exceeding expectations because it has very solid fundamentals to build upon," TREB's President added. "We have seen good returns on investment, and a strong economy and low borrowing costs have kept homes accessible. It's a great time to be in the market."

TREB Launches www.nohomebuyingtax.com

2007-07-08T16:07:00.000-05:00

July 5, 2007 -- TREB has launched a website www.nohomebuyingtax.com to help the public understand what the proposed Toronto land transfer tax will cost them.
View the site here: http://www.nohomebuyingtax.com/

TREB is also running a series of advertisements in the Toronto Star and selected community newspapers to focus on the constituency of undecided councillors before the Toronto Council vote on July 16 on the land transfer tax.

Best June Ever!!

2007-07-08T16:00:00.000-05:00

July 6, 2007 -- Last month the Toronto Real Estate Market recorded 10,451 sales for the best June performance ever, Toronto Real Estate Board President Donald Bentley announced today. "June's figure was up almost 20 per cent over the 8,730 sales recorded during the same month in 2006, and down only slightly (six per cent) from May's best-ever figure of 11,146 sales. To get some idea of the current strength of the market: there have been more sales in the last two months (21,597) than occurred in all of 1977 (20,512), thirty years ago this year."

While the sales pace remained brisk, average prices declined marginally (less than one per cent) from May to $381,963. The year-to-date average was $373,719, up five per cent over the first six months of 2006 ($356,977).

"Price increases remain only modest," noted the President. "Inventory, at 21,789, is robust enough to keep a lid on upward inflation. The current market is still accessible to first-time buyers, and should continue in this mode for the foreseeable future."

Concerned Residents Tell Mayor and City Council to Shelve Toronto Home-Buying Tax

2007-06-07T22:39:00.001-05:00

May 7, 2007 -- With the City of Toronto beginning its public consultations on potential new taxes, Toronto REALTORS® are hoping that Mayor Miller and City Council will heed their advice: don’t impose a home-buying tax.
Public meetings, which start today, are an opportunity for Toronto residents and businesses to tell the City what they think of various new taxes that are being considered. These proposals were only announced less than two months ago, and the City’s Executive Committee could make decisions on them next month.
Possibly the biggest tax that could be levied by the City would be a second land transfer tax, paid by homebuyers on top of the existing provincial land transfer tax. A second land transfer tax of as little as 0.5 per cent would mean that average Toronto homebuyers would have to come up with close to $2,000 extra when buying a home, a 45 per cent increase in the land transfer taxes that they already pay.
“We appreciate any opportunity to inform the City about how misguided a Toronto home-buying tax is, but this issue is too serious to wait for the City’s formal public meetings to start. As soon as REALTORS® found out about the proposed home-buying tax, they started contacting the Mayor and City Councillors directly to tell them to shelve this crazy idea. Hundreds of REALTORS®, that we are aware of, have already sent emails to the Mayor and City Councillors,” said Dorothy Mason, President of the Toronto Real Estate Board (TREB).“ Not just REALTORS® have been speaking out against this tax. As soon as their clients, the general public, find out about this they are shocked that the City would even think about this. Many of them are letting TREB know about their concerns at the same time that they send them to the City, and from what we have seen, it’s clear that the public is very concerned about a Toronto home-buying tax,” said Mason.
The concerns that REALTORS® and the public have been expressing are numerous. Specifically, they have told the City that a home-buying tax would hurt homebuyers, home sellers, businesses, the economy, and the environment (Excerpts from REALTOR® and public correspondence provided below).
“A home-buying tax would hurt those who can least afford it the most. Many homebuyers already have to heavily finance their home purchase to be able to live in Toronto. If they have to find another $2,000, or more, for this tax, they’ll end up having less money for a down payment, which will mean a bigger mortgage, over $1,700 in extra mortgage interest, and possibly more mortgage insurance costs. For a homebuyer of an average Toronto property that could only afford a five per cent down payment, the Toronto home-buying tax could ultimately end up costing them over $11,000 in added costs when mortgage insurance and interest are considered,” said Mason
“The unfortunate thing is that, at the end of the day, a Toronto home-buying tax could mean less, not more, revenue for the City because less demand for Toronto housing will mean less property assessment growth, which would mean less property tax revenue for the City,” added Mason.
Until recently, the City has only been allowed to levy property taxes. “ These are unprecedented decisions that the Mayor and City Council are making, so the last thing they should be doing is rushing, but that is exactly what they are doing. The City needs to make sure that it takes the time to fully understand the ramifications of a home-buying tax,” said Mason.
Sample of Actual Comments from REALTORS® and the Public to Mayor and City Councillors(personal information omitted to protect privacy)
“This ill-timed and ill-considered form of taxation will only serve to stunt growth, and demoralize home buyers and sellers….So often policy is made based on past and existing circumstances, and by the time the full impact is felt the damage is done.”
Sent by a REALTOR® to Mayor David MillerMarch 25, 2007
“I do not think that second land transfer tax is the answer. It will have a dampening effect on the local real estate market, and will drive even more people into the 905 region, making traffic congestion and its attendant pollution even worse than it is today.”
Sent by a REALTOR® to Mayor David MillerMarch 26, 2007
“I think that it will indeed affect present homeowners, in that buyers will be looking elsewhere to buy their properties. In fact, it could well affect values throughout the City of Toronto in an extremely negative way.”
Sent by a REALTOR® to Mayor David MillerMarch 26, 2007
“This tax will hurt those that can least afford it – the ones that are already borderline for home ownership and then together with the hike in property taxes it will put home ownership out of reach for so many.”
Sent by a REALTOR® to Mayor David Miller and local CouncillorMarch 28, 2007
“As it is, when people start adding up all of the costs they need to incur to move (current land transfer tax, CMHC fees, and all of the other costs), they sometimes decide it isn’t worth it even now. With an additional cost it will make it even harder for people to do what is best for their families.”
Sent by a REALTOR® to Mayor David Miller and local CouncillorMarch 29, 2007
“There are so many young families who cannot afford to own their own home now…not only because of the down payment but the expenses involved in closing the transaction. I really and truly do believe this would be a mistake.”
Sent by a member of the PUBLIC to Mayor David MillerMarch 29, 2007
“I have been looking in the downtown area for the last six months for a condo. I am extremely upset about the thought of increasing or adding a second tax to Toronto home owners….now I am seriously considering staying in the town that I currently live in…”
Sent by a member of the PUBLIC to Mayor David MillerMarch 30, 2007
As a recent first-time homebuyer, I must tell you I can't imagine having an additional tax to contend with during the closing period. As it was, my husband and I saved for years before we were able to break into the Toronto market. Now, with the advent of another tax, we have a new worry: that our hefty investment will be sourly devalued (when compared with other markets like Markham) when it comes time to sell the property.
Sent by a member of the PUBLIC to local CouncillorApril 16, 2007
It is very expensive to move in to Toronto at this time. Adding a tax, which must be added on to the cost of the home for those who have mortgages, becomes additionally expensive when amortized over 25 years.
Sent by a member of the PUBLIC to Mayor David MillerApril 23, 2007
Toronto housing is already almost unobtainable, especially for young graduates like myself.I am very concerned with the potential social and economical impact …
Sent by a member of the PUBLIC to Mayor David Miller and local CouncillorApril 23 and 25, 2007

May the Most Active Month Ever

2007-06-07T22:36:00.000-05:00

June 5, 2007 -- In May the Toronto Area resale housing market experienced its most activemonth ever as 11,146 homes changed hands, Toronto Real Estate Board President Dorothy Mason announced today. The total for the month was 18 per cent higher than May of 2006.
“The level of activity has been very strong through the spring, but it jumped to another level in May,” Mrs. Mason said. “Overall, our yeartodate figures show that sales are about eight per cent ahead of last year’s pace.”
In West Agincourt "E05", condominium activity more than doubled as overall sales increased by 39 per cent compared to last May.
Condominiums are by far the most common housing type in Toronto’s downtown / Harbourfront neighbourhood "C01", where transactions jumped 37 per cent overall compared to May of 2006.
In the Cooksville / Port Credit area of Mississauga "W12", 41 per cent more transactions took place compared to a year ago.
North of Toronto in Vaughan Centre "N08", overall resale activity increased by 40 per cent compared to the same timeframe in 2006.
With the average price just five per cent higher than a year ago, at $382,787, Mrs. Mason noted that the market is a strong investment, yet still quite accessible.
“We have an excellent combination of healthy, controlled price increases and a very high level of activity,”Mrs. Mason said.

Toronto Housing Market Reaches New Heights!

2007-06-07T22:33:00.000-05:00

June 5, 2007 -- With an astonishing 11,146 sales in May, the Toronto Real Estate market put in its best performance since records have been kept, President Dorothy Mason announced today. "The Toronto Real Estate Board has been tracking the local housing market for over forty years, and there has never been a month that even approaches this level of activity," Ms. Mason stated. "May was up 18 per cent over April, our previous record month (9,452 sales), and also up 18 per cent over May of 2006 (9,434 sales), which now ranks as the third highest sales total recorded."
Ms. Mason further noted that, according to statistics compiled by the Canadian Real Estate Association, every home sale generates about $27,000 in economic activity (for renovations, furniture purchases, and so forth) over and above direct expenditures involved in the transaction. "This means that Realtors® and their clients have contributed over $300 million to the local economy in ancillary costs last month alone."
However, while sales sky-rocketed, price increases were restrained, with the average rising a mere five per cent to $382,787 from the $365,537 recorded during May of 2006.

April reaches new heights

2007-05-09T07:53:00.000-05:00

May 4, 2007 -- Resale housing activity in April powered the Spring market to never before seen heights, with 9,452 sales recorded during the month, TREB President Dorothy Mason announced today.
"With four months passed, 2007 sales to-date are up five per cent over last year," Ms. Mason observed. "We are on track for another near-record year." The Bowmanville area (E17) saw a sales increase of 43 per cent, driven by sales of detached and link houses.
Sales in Cooksville (W15) rose 26 per cent on the basis of strong movement in all housing types, and especially condominium apartments. Bayview Village (C15) and environs recorded a 50 per cent increase in sales over April 2006.
Transactions in most housing types were up over last year. Finally, the South end of Richmond Hill experienced a 30 per cent bump in resale transactions, due to detached and condo apartment sales.
"With April's results now in," Ms. Mason added, "it is clear that the Toronto resale market still holds excellent opportunities for both first time and move-up buyers."

What is a Reverse Mortgage?

2007-04-19T14:11:00.000-05:00

For many Canadians, the prospect of retirement holds more questions than it does answers. However, if you're a homeowner, the equity you've built up in your property could provide the answer that helps turn your dreams of retirement into a pleasant reality. With a reverse mortgage, you can unlock the equity that's present in your home and use it to generate an income to supplement your reduced earnings after retirement.
With a reverse mortgage, instead of paying the bank or lender, they pay you. The payment is based on a percentage of the amount of equity that's present in the home. For example, if your home is valued at $300,000 and your mortgage is paid off, you have your home's full value to work with. If you took out a reverse mortgage for 40% of your home's value – in this case, $120,000 – this amount is then set up in a fund that pays you a stated amount, usually monthly. This regular payment – or annuity – can then be used toward your living expenses while you're earning less money. There's usually an age requirement – say 60 or 62 years of age to qualify, so you should ask your lender about this.
Eventually, your home equity is also used to discharge the loan. You don't have to make loan repayments while you're living in the property, since that would defeat the whole purpose of the loan. The reverse mortgage loan doesn't come due for as long as you live in your home. You're under no obligation to sell by any given time, but when you do, the reverse mortgage loan is paid in full from out of the proceeds of your home sale.
Wondering what your home is worth today? I can help you determine your home's worth in today's market and how much equity you can expect to draw on. It's all part of our full service philosophy. We want to be there to help with all your real estate needs and that goes far beyond the actual real estate transaction. I have developed trusted contacts in the financial sector and together they can offer you creative financing solutions to help you realize your goals. Whether you're dreaming of early retirement, financing a higher education, renovating your home or even buying an income or vacation property, I can help. Why wait to make your dreams come true?

Spring Market is in Full Bloom

2007-04-17T15:12:00.000-05:00

April 4, 2007 -- Strong resale housing activity in March got the spring market off to a healthy start, Toronto Real Estate Board President Dorothy Mason announced today. A total of 8,518 transactions took place in the month, nearly on par with the 8,707 sales reported last March.
“The market is in great shape, and we’re seeing very strong results on a consistent basis,” Mrs. Mason said. “So far 2007 is slightly ahead of last year’s sales pace, and we’re right on track for another solid year.”
In Scarborough’s West Hill neighbourhood (E10), strong sales of detached homes led to an overall sales increase of 27 per cent compared to March 2006.
Etobicoke’s Mimico / New Toronto neighbourhood (W06) saw transactions increase by 45 per cent compared to last March, fueled by strong detached home and condo apartment activity.
A jump in condominium activity in North York Centre (C14) helped overall sales to a 14 per cent increase compared to March of a year ago.
Overall sales in Thornhill (N02) increased by 16 per cent compared to last March, led by detached home sales.
“The GTA continues to have strong employment numbers and a healthy economy,” Mrs. Mason added.
“Housing activity is solid and prices are steadily on the rise, so it remains an excellent time to be in the market.”

Toronto Realtors respond to Toronto's New Tax Plan

2007-04-17T14:56:00.000-05:00

Toronto REALTORS® respond to City’s plan for new taxes

A new proposal outlined by the City of Toronto to introduce a 0.5 per cent land transfer tax is drawing strong criticism from the Toronto Real Estate Board.

In an open letter to Mayor David Miller, TREB warned that the new tax could drive even more homebuyers out to the suburbs, and have serious consequences for the city’s economy.

The letter says that a Toronto land transfer tax of 0.5 per cent would mean an additional $1,900 in closing costs for the average Toronto homebuyer. Since closing costs hover around 1.5 per cent of a property’s purchase price, the proposed tax represents an increase of 33 per cent in these costs for Torontonians.

Not only is this unfair, says TREB, as it puts an extra burden on homeowners alone for municipal services used by everyone, it’s also counterproductive.

Since the City of Toronto would be the only jurisdiction in Ontario to have this extra land transfer tax, homebuyers would be encouraged to move out to surrounding municipalities. The result would be increased sprawl, increased commuter traffic and an increase in all the environmental problems that go along with that.

Since the City has been trying to encourage intensification as part of its Official Plan, measures that make housing in Toronto less attractive run counter to other policy objectives. TREB notes that, with the average price of a re-sale home around $378,000, Toronto is already one of the most expensive cities in the country to live in.

A recent study by Clayton Research for The Canadian Real Estate Association found that each re-sale housing transaction in Ontario generates about $33,500 in spin-off spending over and above the price of the house. This means that real estate transactions in Toronto are pumping more than $2 billion per year into the local economy. TREB warns that any move impacting the real estate industry would impact the city’s overall economy, and should be carefully considered.

Toronto’s REALTORS® are especially concerned about this proposed measure because it would be unprecedented. Although land transfer taxes have been introduced in other municipalities, in no case was there also a provincial/state land transfer tax in place.

Ontario, however, already levies such a tax. In the average Toronto home sale, the province collects about $4,200 in land transfer taxes. If the City introduces its own land transfer tax, Toronto homebuyers would be left facing a “double whammy” of extra costs. The TREB letter emphasizes that as Toronto would be the only municipality imposing this heavy burden, homebuyers, instead of serving as cash cows, would be encouraged to buy new homes outside the city. (CREA 22/03/07)

Self-Employed? Buyer a Home Just Got Easier

2007-03-13T17:29:00.000-05:00

CMHC Opens Doors to More Self-Employed Homebuyers
OTTAWA, March 6, 2007 — Canada Mortgage and Housing Corporation (CMHC) announced today that it will improve its mortgage loan insurance approval system, through a product enhancement called Self-Employed Simplified, to help more self-employed borrowers realize their dream of homeownership.
“Self-Employed Simplified, will make it easier for certain self-employed borrowers to obtain mortgage loan insurance and, as a result, benefit from competitive interest rates,” said Pierre Serré, CMHC’s Vice-President, Insurance Product and Business Development. “This product enhancement will help self-employed borrowers and commissioned salespersons to obtain a CMHC-insured mortgage, much like borrowers who receive a salary or hourly wage from an employer.”
In recognition of the growing proportion of self-employed people in today’s workforce, CMHC has developed tools that help assess the risk associated with borrowers who have difficulty obtaining third-party validation of their income using traditional forms of documentation. Increasingly sophisticated risking models will enable the Corporation to launch this product enhancement effective March 30, 2007.
CMHC Self-Employed Simplified is designed for borrowers who have a minimum of two years in the same type of work and a proven track of responsibly managing their debt. CMHC Self-Employed Simplified will insure mortgages on one- or two-unit homeowner properties and will also be available for refinance transactions, for mortgages up to 90 per cent of a home’s value.
As Canada’s leading mortgage insurer, CMHC shares a wealth of knowledge and housing expertise for the benefit of Canadians. CMHC's mortgage insurance has opened doors for millions of Canadians, giving them the assurance and piece of mind that comes with homeownership.
As Canada’s national housing agency, Canada Mortgage and Housing Corporation (CMHC) draws on 60 years of experience to help Canadians access a variety of quality, environmentally sustainable, and affordable homes — homes that will continue to create vibrant and healthy communities across the country.

2007-03-06T13:13:00.001-05:00

Second Best February Ever!
March 6, 2007 -- TREB Members reported 6,772 sales in February, an increase over February 2006 (6,756 sales) and the second best total for this month ever recorded, TREB President Dorothy Mason announced today. "While the weather last month may have been cold, Toronto's resale housing market remained hot," noted Ms. Mason. "And while it is too early to make predictions, it is clear from the start of 2007 that the spring season is likely to produce sales numbers at east comparable to those of the past several years, which have been record or near-record performances."
Meanwhile, average prices climbed four per cent over the previous month to $368,687 as sales activity accelerated. They were also up four per cent from the February 2006 figure of $353,928. The average time-on-market was a torrid 35 days.
Breaking down the total, 2,522 sales were reported in TREB’s 28 West districts and averaged $342,060; 1,224 sales were reported in the 14 Central districts and averaged $504,381; 1,395 sales were reported in the 23 North districts and averaged $389,306; and 1,631 sales were reported in TREB’s 21 East districts and averaged $290,392.

2007-03-04T17:58:00.000-05:00

The Coldwell Banker International Website has some great videos that discuss finding the right home for you, finding an agent, and helpful info for first time buyers.
Click the link below:
http://coldwellbanker.feedroom.com/

How to get The home at The price

2007-02-11T15:48:00.000-05:00

Whether you are buying your first home or your fifth, the process of buying a home can be an emotional, time-consuming venture. Feeling that, in the end, you made the right decision and got a good deal can make all the difference.As with most major decisions, the amount of work and research you undertake before you start shopping can have a dramatic effect on how well you do in the end.
#1 Do you really need that backyard tennis court? Everyone can picture their ideal home. If you haven’t thoroughly prepared yourself prior to viewing houses, chances are that you will find what you think is your ideal home, and will wind up paying too much for it.It is essential to treat the buying process in a slightly detached manner. Those who fall in love with houses usually pay too much.That’s why it’s recommended that you develop a list of needs and one of wants. When looking at houses, make sure that they cover all of your needs – things like adequate space, a good neighborhood, perhaps a garage – and then have fun with items on your wants list. Treating the process in a regimented manner will help you to make a rational, informed decision.
#2 Get pre-approved. Visit your lending institution prior to shopping. Be sure to get a mortgage commitment in writing. Being pre-approved gives you a solid price range, and lets your Realtor® and potential sellers know that you are serious and not just a browser.
#3 Get the right people behind you. Buying a home is a complicated process, with many people involved. Having the right people on your side can make a big difference. An experienced, dedicated, and knowledgeable Realtor® can put a team of advocates, including lenders, lawyers, home inspectors and movers, on your side immediately.
#4 Communicate. The more you share with your Realtor®, the better he or she will be able to represent you. Letting your representative know exactly what you’re looking for, in terms of needs/wants, price range, and location, can eliminate unnecessary trips to unsuitable homes and that focus can help ensure that you wind up in the right home.
#5 Location, location, location. It’s still true. The desirability and resale value of your home depend on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc. On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighborhood? Are yards fenced? Are there many children playing in the streets? Are the front and back yards and the exteriors of the homes properly maintained? The less expensive houses in a better area tend to appreciate faster than the most expensive houses in a less desirable area.Additional factors that affect the property value of a home include traffic, sounds, smells, zoning bylaws, and many others. Be objective. Be sure you are completely satisfied with the neighborhood. If you choose a neighborhood with problems, you likely won’t get as much as you hoped with it comes time to sell.
#6 Use your Realtor’s® knowledge. Your Realtor® is trained in all aspects of real estate, including understanding supply and demand, economics, and the neighborhoods of the city in which they practice. A professional Realtor® can do much of the work for you, by reviewing your needs, reviewing available properties, and making an informed match. A comprehensive knowledge of the available homes in your neighborhood is one of your Realtor’s® strongest assets. With the aid of computerized systems, a Realtor® is notified within hours when a home becomes available.
#7 Pay attention to red flags. When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, or unattractive wallpaper can be easily remedied, and can be used as negotiation items, as there will be costs involved in updating the home. Major problems, however, are clearly red flags. Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could be too expensive to remedy to make the home a worthwhile investment.
#8 Hire a home inspector. A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.
#9 Be cautious with fixer-uppers. Sometimes, a fixer-upper can be purchased below market value, and once sufficient repairs are made, can be sold at a significant profit. However, not all fixer-uppers will bring in the profits you might expect. Consumers often overestimate their level of dedication to doing extensive renovation work, and underestimate the costs associated with such work. A wall that needs to be replaced can often lead to the discovery of faulty plumbing, electrical, or other major undertakings. Your Realtor® and home inspector are your best allies when it comes to cost-benefit analyses.
#10 Consider your future needs. A move can be a major undertaking. Take a good look at your current lifestyle and consider the future. Will you need extra space for a home office, a child, or perhaps a child moving back home? Perhaps it may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years down the road.
#11 Proceed quickly. When you’re ready to buy, act. Good properties sell. This is especially true given the current state of most real estate markets. However, when you work with a Realtor®, you have access to the latest technology. As part of the MLS and Agent Handshake networks, a Realtor® has access to properties within hours of when they are listed. Technology works to your advantage. Many Realtors® now have personalized websites which allow you to sign on as a client, and receive notification of new listings via email. You save time and effort, and you can view only those homes that come closest to meeting your needs.
#12 Clarify relationships. In any real estate transaction, be very clear about who is working for whom, and what the relationship represents. Unless otherwise stated, an agent represents the seller in transactions for the sale of a home. This agent, as part of his or her fiduciary duty, must ensure that the seller’s (and not your) position is represented throughout the entire process. Get a buyer’s agent on your side, or ensure that someone is acting in your best interests.
#13 Ask for a written CMA. A Comparative Market Analysis (CMA) is an analysis of comparable homes in a given neighborhood. It shows you the sale prices of comparable homes in the neighborhood, along with asking prices of other homes in the area currently on the market. A Realtor® can request this report for any home and neighborhood. Ask for this report in writing. With this valuable document, you’ll have solid, reliable information about how fairly a home is priced compared to its real market value.
#14 Know the seller. Understanding a seller’s reasons for moving could work to your advantage during negotiations. For instance, a seller who has been transferred to another city may be more motivated to sell than someone who is still shopping for a new home. A vacant house, or a house that has been on the market for several months and has been reduced in price, could also provide the opportunity for lucrative negotiations.
#15 Keep it impersonal. Conversely, information could be used to your detriment. Information about your mortgage, size of down payment, move-in deadline, or circumstances for buying could be used to the seller’s benefit in negotiations. While you want your Realtor® to know these details, maintain your poker face and keep your cards hidden with the sellers and their agents.
#16 Measure twice, sign once. While you definitely want to move quickly once you’ve made the decision to purchase, you don’t want to cave in to pressure for a quick close. Someone who is trying to pressure you into buying a home is likely doing so for a reason. Make sure the reasons for you to buy a home are your reasons, not theirs.
#17 Exercise your negotiating skills. Even if you prefer not to haggle, it’s worth it, especially when it’s your home and one of your biggest investments. Most people expect to haggle over the price. There is always room for negotiation, and your Realtor® should be a professional negotiator.
#18 Avoid bidding wars. In some cases, the seller’s Realtor® may use scare tactics to rush the sale or increase the price. Falling for this trap could cost you money. If there is another buyer, or some other reason this pressure is being applied, whoever wins also loses because they tend to overpay. Let reason be your guide, not passion.
#19 Get it in writing. Legally, sellers must disclose all known material defects of a property. Ask for this in writing. Also be sure to consider the ramifications of these defects. Will they be costly down the road? Are they “serious” defects?
#20 Be aware of hidden costs. While Realtors® often tempt first-time buyers with rent/mortgage comparisons, there is more to a home than simply the mortgage. You will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, property tax, increased bills, etc. Your Realtor® can give you a good idea of the costs associated with buying a home that are beyond its final negotiated price.

Source: point2agent.com

The Advantages of Home Ownership

2007-02-10T15:15:00.000-05:00

If you're wondering whether home ownership is right for you, a good place to start is by weighing all the ‘pros' and ‘cons'. Consider the many advantages of owning your own home. There are many practical and financially sound reasons for buying your first home, whether you start with a condo, a duplex flat, a townhouse, or even a single family home:
Home ownership is an excellent way to build equity. That's an important consideration if you're trying to build some financial stability – especially if you happen to be single and are doing it on just one income.
There's the security that comes with making an investment for the future. When you own your home, you have a resource to fall back on
Paying a mortgage off is usually better than “throwing money away” on rent. You could be paying high rents for years, adding up to many thousands of dollars, yet never end up with anything that's yours.
Your rental expenses can often be out of your control – possibly now, but particularly in the future. However, if you lock in a long term mortgage, you'll know exactly how much your payments will be for years to come.
Owning your own home gives you the option of earning extra income, either by renting out the entire property or by taking in a tenant.
Homeownership affords an asset to borrow against if you ever need to. Even if your mortgage isn't paid off, you can still borrow against the equity of your home – and at far better interest rates than you'd normally get for almost any other type of personal loan.
Property values are expected to continue to appreciate throughout 2007 and 2008, so your investment is earning a good return while you enjoy it.
There are other exciting reasons to consider home ownership. You'll gain independence and pride of ownership. The feeling of satisfaction and accomplishment it gives is one of life's great pleasures. Want to know more about the advantages of home ownership? Call me at 416-495-2256 to discuss your needs.

How to Chooose a Realtor

2007-02-10T14:13:00.000-05:00

Whether you’re buying or selling a home, it can sometimes be a difficult task. You can make it that much easier by choosing the right realtor. Successful real estate professionals know that today’s informed and techno-savvy customers need service that goes far beyond the transaction itself. In order to succeed in today’s market, the best real estate professionals are emerging as facilitators of a comprehensive service process that encompasses the entire homeownership experience – before, during and after the sale.
When choosing a realtor, you can start your selection process by examining their track record. What companies and what salespeople have already proven their success in your marketplace? Ask lots of questions of anyone soliciting your business. Do they have experience working with your type of property and in your price range? What other business background or special skills do they have that puts them in a better position to understand and respond to the needs of today’s consumer? Are they well connected to the community and how do they keep abreast of local events that may impact property values? What other home related services can they assist you with? Can they help with creative financing options? Can they recommend trusted and reliable service providers for your home inspection, legal or moving services?
One thing you can rely on is that today’s real estate salesperson is a true professional. Industry standards and licensing requirements demand that every real estate professional completes a rigorous course of instruction and examinations before they are entrusted with your business. Ongoing education from company or industry programs further enhances their skills. When choosing a real estate representative, ask them about their training, experience and performance history. That information, combined with how clearly and how convincingly the representative builds their own case, will help you to make the right choice. After all, if a representative does a good job of convincing you, they’ll probably be just as convincing when they represent your best interests.
But while a good salesperson will offer good service, the best salesperson offers service that changes with the times. They use cutting edge technology to respond more quickly and more knowledgeably to their customers’ needs than would have been thought possible just a few years ago. They market their customers’ properties not only by posting a listing on MLS, but also through a number of online classified sites which have a tremendous amount of views everyday. Other digital marketing tactics such as personal websites and e-newsletters are all part of an effective agent’s online campaign. It's a fact that over 75% of buyers search online before visiting a single open house!!
Finally, you’ll want a sales representative who listens to you, who understands your needs, and ideally a representative who will commit to your customer satisfaction.
I am acutely aware of the need to stay on top of technology. Online advertising gives my sellers the kind of exposure that can't be achieved the print ads. When my phone rings and someone has an inquiry about one of my listings, it could be a caller from anywhere around the globe. Toronto is a destination for so many, and people start to search for their new home before they even arrive!! In addition to my real estate blog, I also have an online network of websites which displays listings from many of my associates as well. Check it out at www.bernieparent.ca

Strong Start for 2007

2007-02-10T01:38:00.000-05:00

February 6, 2007 -- The January resale housing market was the best January ever, registering 13 per cent more transactions than a year ago, Toronto Real Estate Board President Dorothy Mason announced today. The 5,173 sales in the month were six per cent above the previous record set in January 2002.
“Sales have been very solid to start the year,” Mrs. Mason said. “It’s a very good sign for the market to see a healthy level of activity carrying over from last year’s strong finish.”Scarborough’s Birchmount Park / Cliffside area (E06) saw 55 per cent more overall sales compared to last January, with detached homes accounting for nearly all transactions.In the Islington / Kingsway area of Etobicoke, a jump in condominium transactions helped to push overall sales 42 per cent higher than January 2006.
An increase in sales of condominiums and semi-detached homes helped lift Forest Hill to an overall increase of 56 per cent over January of last year.
North of the city, in Markham West / Langstaff (N01), 50 per cent more homes changed hands in January than during the same month a year ago.Ted Tsiakopoulos, CMHC’s Ontario regional economist, noted that Toronto’s housing market has been a very stable sector of the economy.
“The market remains resilient despite slower job growth, high energy prices, and a loss of migrants to western Canada,” Mr. Tsiakopoulos said. “Historically low interest rates, strong income growth and healthy consumer confidence are important factors keeping January home sales buoyant across the GTA.”
TREB’s President added that while the results are preliminary, they should instill confidence in consumers.
“The housing market is healthy and continues to be well supported by strong economic fundamentals,” Mrs. Mason said. “These are ideal conditions, and consumers can feel confident making a switch to another home or realizing their dream of home ownership for the first time.”

2007-02-10T01:27:00.000-05:00

Finding the perfect home doesn't happen in one day. There are a number of things you can do to simplify the process, including defining financial parameters, potential neighbourhoods and the desired features in your next home.
Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what is most important to your lifestyle.
Then it's location, location, location. Location affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited somewhat by the price you can afford. Even so, make sure you consider such things as distance to work, schools, shopping and entertainment.
What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living.
I can help you analyze all of these buying issues. As your buyer's agent I work to find the connection between homes available in the market and your needs and budget.
As your agent, I owe you the duties of utmost care, integrity, confidentiality and loyalty. I will explain how buyer agency protects you and what my obligations are.I use various tools to try and find properties that meet your specifications including the MLS® service. One of the important search tools will be the local MLS® system. By sitting down at a computer together, I can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS® system. You can also view listings posted to the national mls.ca web site.
When you select a property and decide to visit a house, there are many things to consider. Does it have all the features you wanted? Is the neighbourhood what you expected? Try to picture your favorite furnishings in a room. Remember all of the technical considerations:
what type of wiring does the house have?
what about power outlets? Different appliances use different types.
what type of heating system does it use?
what about the roof and foundation?
what condition are the windows in?
what about the plumbing?
There are other things to look at as well. If you don't have time or don't feel comfortable doing it, home inspection services are available for a reasonable fee. Having a qualified home inspector look at the house is always a good idea. The older the home, the greater the need for professional inspection.
Once you find the house you want to make your home, we will meet to write an offer. In the offer, you will specify how much you're willing to pay, when the offer expires, and suggest a closing date for the transaction. We will also include some conditions on the offer. Some common types of conditions are:
getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
the seller providing a current survey, or a "real property report," showing the location of the house on the property owned by the seller and that there are no encroachments;
the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards;
if you still have any doubts about the home's safety and construction, we may make the purchase conditional on an inspection by a qualified engineer; any inclusions - basically, what stays and what goes.
You will need to present a deposit along with your offer. An appropriate deposit will show your good faith to the seller. The seller's agent is bound by law to bring all offers to the seller's attention.
After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit. You may also be sued for damages. Make sure you understand and agree with all of the terms of the offer before signing.
No matter what type of home or property you're buying, plan on some extra expenses. In some provinces, you may have to pay a land transfer tax (a sales tax on property).
You may also have to pay:
a mortgage Broker's fee:
an appraisal fee;
surveying costs (if the seller couldn't come up with a current survey); and,
a high-ratio mortgage insurance premium.
an interest adjustment. Mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.
You'll also have to reimburse the seller for the unused portion of any prepaid property taxes or utility bills. As well, you must also pay any legal fees. Be prepared to furnish proof to your lender that you have insured your new house as well.
Before the property can formally change hands, there are still a few things to do. On or before closing day, your lawyer and the seller's lawyer will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.
At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase. Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say... except welcome home!
(The comments contained on this site are for information purposes only and do not constitute legal advice.)

The Federal Home Buyers Plan

2007-02-09T02:39:00.001-05:00

The federal Home Buyers Plan was originally promoted by REALTORS® as a way the federal government could support home ownership. The plan was launched in 1992, and since then more than 700,000 homes have been purchased by first time home buyers using their RRSP investments.
Under terms of the Home Buyers Plan (sometimes known as the RRSP program) participants in a home buying agreement can borrow up to $20,000 from their RRSP to use in the purchase of a principle residence in Canada. Funds on deposit in an RRSP for a minimum of 90 days qualify under the plan. Almost every type of property qualifies, including a duplex, triplex, condominium, co-op, co-ownership, and mobile homes.
Because there are usually two participants involved in the purchase of each home, there can be a maximum of $40,000 available from individual RRSPs that can be used. If one spouse or partner has owned a home, but not the other, then the previous owner would not qualify and only one could apply for the Home Buyers Plan.
Individuals have 15 years to repay the RRSP withdrawal without penalty. This means 1/15th of what's borrowed is due each year, over a 15-year span (for example on a $7,500 withdrawal, that's $500 annually). Repayments can start sooner, and penalty-free prepayments are also allowed.
(The comments contained on this site are for information purposes only and do not constitute legal advice.)