4 Steps to Picking a Correction-Proof Property

Great artice in www.CanadianRealEstateMagazine.ca 

For investors, withstanding the ebbs and flows of the real estate cycle is par for the course. But how do you choose a property that can do the same?

Construction consultant Marco Ganassini has been in the industry for almost 30 years, and says there are four fundamentals to consider when picking a correction-proof property that will attract tenants, mitigate risk, minimize expenditure and, most important of all, provide cash flow.

1. Avoid picking a property solely on price-point – no matter how good a deal it may seem

“The biggest mistake people make is when they chase prices is they look for property in areas where prices have been escalating, especially in the recent past, rather than looking at the fundamental value of the property,” he says. “Primarily, you should be looking for a property that, if and when a correction occurs, you won’t be forced to sell.”

According to Ganassini, there is one principle thing to consider when picking a correction-proof property.

“The whole concept surrounds mitigating risk,” he says. “You’re looking for property that has intrinsic or fundamental value, and we base that on return on investment and cash flow. You want to have some margin of safety.” He continues, “If unforeseen expenses occur, if your revenue stream gets affected, you want to make sure you have the cash flow or capital to cover it. To do that would include not over-leveraging yourself, and finding a property in already excellent condition.”

Click here for more.

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Ten York by Tridel

Let’s make one thing clear – I am SUPER excited about this project!

Tridel will be AGGRESSIVELY pricing this development – BETTER THAN THE CURRENT RESALE PRICES IN THE NEIGHBORHOOD, and the completion is slated for 2017!

Download the Sneak-Preview package HERE:

If you are seriously considering investing in the Toronto Condo Market, here are some reasons you should invest at Ten York:

  • PRICE: Ten York is UNBELIEVABLY priced, starting from just $620 per square foot! This is 8-12% LESS than neighbouring projects and even LESS than the resale market in this neighbourhood!
  • LOCATION: Located at York & Lakeshore at the gateway of Toronto and the thriving South Financial Core and Waterfront neighbourhood.  Located just steps to the underground PATH, Air Canada Centre, Union Station and much more!
  • DEVELOPER: Tridel is one of Toronto’s leading and most trusted developers.  They consistently rank as “top builder” by J.D. Power.
  • PROJECT: Gorgeous architecture and the project stands an incredible 69 storeys. The amazing design will be a standout on Toronto’s skyline forever. 

SOUTH FINANCIAL CORE GROWTH: The South Financial Core is attracting some of the globes top companies.  PWC, Telus, RBC and other major companies will be bringing an amazing 10,000 new jobs to this neighbourhood

If you would like to receive priority Platinum access to Ten York Condominiums, complete the form below for all the information ( including floorplans, prices and opportunity to purchase) and I will contact you with full details.

Suites are being allocated on a first come, first served basis. 

[si-contact-form form=’3′]

 

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Land Transfer Tax a ‘Bad Idea’ Says Study

Great artice in http://RealtyTimes.com by Jim Adair.

Land transfer taxes are a bad idea that have a negative impact on both homeowners and the governments that enact them, says a new report by Benjamin Dachis, senior policy analyst for the C.D. Howe Institute.

The tax measure reduces the number of homes that are sold, particularly in the lowest price ranges, and inhibits household mobility, says Dachis. As a revenue source for governments, they are not reliable because of the volatility of the real estate market, and they distort the residential and commercial markets where they are in place, he says.

Dachis studied the Toronto Land Transfer Tax (LTT), which he says adds an additional tax of about $11,400 to an average detached Toronto home. That’s in addition to the provincial land transfer tax of $12,100. The city is the only municipality in Ontario to have a double LTT, which ties it with Philadelphia for the highest statutory transfer tax rate in North America.

Click here for more.

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

New Mortgage Rules Cause Challenges for Homeowners Wanting to Improve Their Properties.

Great article from George Christopoulos of the Mortgage Centre:

With the government imposed limit for refinances set at 80% of the home’s value, those purchasers buying with less than 20% down will have to wait a long time before being allowed to refinance their home. This may prevent them from adding the cost of renovations to their mortgage until the property value increases substantially.

The solution to this is to plan your improvements at the time that you buy your home, and include the financing of the improvements in your initial mortgage. This strategy is referred to as “Purchase Plus Improvements”.

Planned properly, and with the help of an experienced mortgage professional, it is a relatively straightforward program and will allow you to enjoy that new kitchen, bathroom, or much needed mechanical improvements years sooner. With the historically low mortgage rates available today, the cost of your improvements can be extremely affordable as compared to other financing options such as a personal loan or unsecured line of credit.

How it works:

The rules vary from lender to lender and are slightly different with each of the mortgage insurers. Here are some guidelines:

1.  Financing can be up to 95% of the property value
2.  Improvements that can be financed at the time of home purchase can be one
     of the following:
               a.  10% of the improved value (after the renovations)
               b.  20% of the original value (before the renovations) to a maximum of $40,000

Example:

Purchase price                                                    650,000
Improvements (kitchen and bathroom)               60,000

After renovation value                                         710,000
Minimum down payment (5%)                             35,500

Mortgage required                                              674,500
High Ratio insurance premium                            18,549

Total mortgage                                                    693,049

The money would be advanced in 2 stages. On the closing date, you would receive the funds to complete the purchase – 95% of $650,000. After you have completed the improvements, you would receive the remaining money – 95% of $60,000
 

What you will need
 
1.       An experienced and knowledgeable Realtor and mortgage professional
2.       Accepted agreement of purchase and sale – conditional upon satisfactory financing
3.       Quotes from a reputable contractor detailing the work to be completed and the cost
4.       Income confirmation acceptable to the lender
5.       Down payment confirmation acceptable to the lender
6.       Funds to complete the renovations until the money is advanced by the lender once work is completed

Handled properly, this will be a smooth process with minimal additional stress. It is critical to plan this in advance and have the right team assisting you each step of the way.      

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Why You May Not Need an Apartment Lease

Great artice in www.MoneyVille.ca 

Last week’s column about how illegal clauses creep into apartment leases generated a lot of emails about landlord and tenant rights. One of the questions is whether Ontario landlords and tenants need a lease since the law is clear and comprehensive.

It’s a good question. For landlords, it is far more important to properly qualify your tenant. If your tenant subsequently defaults or breaks the lease early, you won’t collect anything anyway. In addition, a landlord has a legal obligation to try and reduce damages by re-renting their unit, so it is unlikely you will be able to sue the tenant for anything more than the months the unit remained empty.

For tenants, unless it is a house or condominium, you should also consider monthly tenancies. In a larger apartment building, it is unlikely a landlord will be able to terminate your lease for family reasons. Therefore, as long as you pay your rent on time and behave yourself, you can stay as long as you want. If you ever want to leave, will only have to give 60 days’ notice

Click here for more.

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

A New Housing Boom( U.S.A.)

Great artice in  http://Money.CNN.Com

The long-battered housing market is finally starting to get back on its feet. But some experts believe it could soon become another housing boom.

Signs of recovery have been evident in the recent pick ups in home prices, home sales and construction. Foreclosures are also down and the Federal Reserve has acted to push mortgage rates near record lows.

But while many economists believe this emerging housing recovery will produce only slow and modest improvement in home prices, construction and jobs, others believe the rebound will be much stronger.

Barclays Capital put out a report recently forecasting that home prices, which fell by more than a third after the housing bubble burst in 2007, could be back to peak levels as soon as 2015.

Click here for more.

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Condos and Schools?

Great artice in  www.NewinHomes.com

There is no secret that Toronto is struggling to keep up with the maintenance of its schools. Despite dedicated development fees coming in from each condo unit that is approved by the city, we seem to be struggling with simply maintaining the minimum standards for our students. One prime example of this issue is at Davisville Public School, where they are in dire need of repairs, ones that the city cannot afford (for some reason).

Last month, InsideToronto.com reported that local counsellor Josh Matlow met with both locals and the school board, where the idea was presented that perhaps partnering with a developer could solve the issues they have. The initial idea would see two condominium towers developed on the site, from eight to 30 storeys. Although the plans are in preliminary stages, it seems like a smart idea. One of the issues that the TDSC would have to work with would be the official plan, which sees the area as a “neighbourhood,” which specifies that buildings stay below four storeys.

Click here for more.

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca

Tour Des Canadiens Montreal Condos Platinum Pricing

Canderel and Cadillac are set to launch the biggest condominium project Montreal has ever seen.  The two mega developers are teaming up to bring Tour Des Canadiens, a 48 storey condominium to the Bell Centre located in the heart of the City.

Tour Des Canadiens has the City of Montreal buzzing like no other project before it, and the connection to the Montreal Canadiens has an awful lot to do with that.  Riz Dhanji (VP of Marketing for Canderel) stated “Montreal has two religions; the Church and the Montreal Canadiens”. 

Tour Des Canadiens shares a lot of similarities with Maple Leaf Square in Toronto – the two tower development connected to the Air Canada Centre.  Like Maple Leaf Square, Tour Des Canadiens will be connected to the local sports team, have direct connection to the Underground City and Subway Stations (as well as the major train portal in Montreal).  

Real Sports Bar, the bar that anchors Maple Leaf Square in Toronto is widely regarded as the finest sports bar in the GTA.  Tour Des Canadiens will have a similar bar in the base of Tour Des Canadiens that will improve upon the original.

Tour Des Canadiens will also offer condo-owners exclusive privileges to the Bell Centre and incredible access to the Canadiens.

The developers are reporting overwhelming demand and expect the project to be an incredible sell out success.  Dhanji says he’s “never seen anything like it”, this a telling statement for the man behind high demand projects such as DNA3 and Aura.

The developer is selling this on a first come, first served basis – ACT FAST if you want to purchase into this once-in-a-lifetime opportunity.

Tour Des Canadiens is gearing to launch and my Clients will have incredible access to the project.  

We have three floors on hold.

To register and get all of the information (including floorplans, prices and opportunity to purchase)  complete the form below!

Suites are being allocated on a first come, first served basis.

 [si-contact-form form=’3′]

August 2012 GTA Market Report

Real Estate Coaching: Sign up here for FREE Real Estate Coaching…whether you are buying , selling or renting.

Starbuck’s Coffee:  Please join my new Real Estate Fan Page here. When I reach 100 FANS I will be giving away a bunch of Starbuck’s coffee cards.

Email Alerts: Subscribe to receive real estate news first. Be first in line for new construction Platinum Pricing. Click here.

Low-Rise Home Sales Drive August Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Toronto Realtors reported 6,418 sales through the MLS in August  2012. The number of transactions represented a 12.4% decrease compared to August 2011.  The decline was most pronounced in the condominium apartment segment in the City of Toronto where sales declined by 22.0%.

The number of new listings reported in August was down by 5.5% compared to the same period in 2011.

“Residential transactions were down in August compared to last year,” said Toronto Real Estate Board President Ann Hannah. “ Stricter mortgage lending guidelines, which came into effect in July, arguably played a role. In the City of Toronto the additional impact of relatively higher home prices coupled with the upfront cost associated with the City’s Land Transfer tax led to a stronger annual decline in sales compared to the rest of the GTA

The average selling price continued to grow in August up by 6.4% from the same time last year to $479,095. Price growth continued to be driven by the low-rise market segment in the City of Toronto, including single-detached homes with an annual price increase of 15%. 

“While sales were down year-over-year in the GTA, so too were new listings. As a result market conditions remained quite tight with substantial competition between buyers in the low-rise market segment” said the Toronto Real Estate Board’s Senior Manager of Marker Analysis Jason Mercer. ”

“ The trends for sales and new listings are moving somewhat in synch, suggesting that the relationship between sales and listings will continue to promote growth moving forward. ”

 “TREB’s baseline forecast for 2012 is for an average price of $485,000, representing a more moderate 4.0% annual rate of price growth. This baseline view is subject to a heightened degree of risk given the uncertain global economic outlook,” continued Mercer.

Sales of Toronto (416 area code) condominium apartments decreased by 22.0% from August 2011. The average price of a Toronto condo decreased by 4.0% from the same time last year.

 

 

 

 

 

 

 
Condominium apartments accounted for 23.6% of total sales in the GTA for August 2012 while detached homes accounted for 47.2% of the total sales. 

 Other notable statistics include the average days on the market for August at 28 days. Active listings were 19,043 in August-up 10.5% from August 2011. The sales-to-listings ratio for August was 33.7%  which is classified as a Seller’s market. A ratio from 24%-28% is considered a balanced market.  

Sellers are looking for market value for their property. I prepare a comparative market analysis (CMA) for all of my Buyer clients prior to submitting an offer to determine the property’s market value range 

 Real estate is very neighbourhood specific and even very street specific in some areas. The numbers as reported above are GTA averages. Results in one neighbourhood or on one street do not indicate that all other neighbourhoods or streets are experiencing the same results. We are still seeing multiple offers in some areas for the best homes.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Please contact me direct at 416-520-6746 or by email, David@TorontoRealEstate.ca