The Lancaster Blog

Parents Pressure School Board

2012-02-03T14:56:00.001-05:00

The odds are stacked against them, but that didn't stop some 40 Clarkson and Erindale parents from showing up at a Peel District School Board meeting tonight to try to keep schools in their neighbourhoods from closing.

One of them even brought a petition signed by 350 parents in the hopes of influencing Board members.

"You're closing two out of three elementary schools in Park Royal," said Richard Barter, chair of the Hillside Parent Council. "Nobody's happy about that, not the residents, not the parents, not the homeowners and certainly not the wonderful teachers and staff at these schools. We want something back."

Peel Board staff have already endorsed the idea of closing five public schools that feed Erindale and Clarkson Secondary Schools, but say the closures should not happen until September 2013 at the earliest.

A report prepared by board planners was presented tonight at Peel Board headquarters on Hurontario St. and Matheson Blvd.

It endorses recommendations made earlier by a special Accommodation Review Committee (ARC), formed by the Board to study student enrollment/accommodation issues.

That committee, which held a series of 12 meetings and hosted four public meetings, recommended closing Ashgrove, King’s Masting and Pheasant Run elementary schools in Erindale and Elmcrest and Willow Glen public schools in Park Royal.

Ashgrove students will be redirected to Garthwood Public School, with King's Masting kids going to Brookmede and Pheasant Run students to Sawmill Valley Public School.

Most Grades 6-8 students in those communities will attend Erin Mills Middle School near South Common Mall.

In Park Royal, the board will negotiate with the City of Mississauga to acquire property beside Hillside Middle School, which will be expanded to become a Kindergarten to Grade 8 school. It will accommodate students coming from the closed Elmcrest and Willow Glen Schools.

Many parents angrily opposed the proposed closures at the earlier public meetings.

Barter and other parents had hoped the Board would keep two schools open in Park Royal, instead of the planned one.

But, he added, he supports the ARC recommendation of Hillside as the consolidated school, as long as the Board does all it can to ease the process for students.

"I would respectfully ask that the Board integrate as many of the teaching staff at Elmcrest and Willow Glen into the new school as want to move to Hillside or is feasible," he said. "This will provide a great degree of continuity to the younger children who feel a strong emotional bond to their homeroom teachers and will ease what will be a big change in small childrens' lives."

Trudi Frise, who has children at Pheasant Run, brought the petition to Board members.

She argues closing five out of the 10 schools being looked at is "excessive."

"Closing community schools means the neighbourhood loses an anchor," she said, adding that only two of the 10 schools up for closure have less than 60 per cent capacity.

"Why are we trying to fix something that isn't broken?"

Frise said during the public meetings, ARC gave little reason why it was going forward with certain closure plans and abandoning other proposals.
She said communication between ARC, the Peel Board and concerned parents "could be better."

Meanwhile, Jim Borland's daughter just started kindergarten at Pheasant Run, and she loves it.

"We're supposed to be cutting back on greenhouse gases and emissions," said Borland. "With all the concern about childhood obesity, how does it make sense to move kids to a school where they'll be bused instead of walking to it?"

Gillian Hughes, who has two daughters, aged five and eight, at Pheasant Run, said 93 per cent of children who go to Pheasant Run walk to school — after consolidation, they'll be bused to Sawmill Valley.

"Our community was built around that school (Pheasant Run)," said Hughes. "Frankly, I think they made their decision before they heard from any of us."
Catherine Kerr's two children attend senior kindergarten and Grade 2 at King's Masting, and she's convinced ARC's recommendation is short-sighted because the neighbourhood around that school is going through a renewal as retirees move out and families with young children move in.
Parents also maintain that closing the schools would negatively impact house values. Trustees will vote on the recommendations next Jan. 24.

By Louie Rosella found on Mississauga News

Why It’s a Good Time to Buy a Home

2012-01-30T13:00:00.000-05:00

I believe there has never been a better time to buy a home. I’ve been in the industry for 28 years as a lawyer and I haven’t seen so many positive signs for housing, whether you are thinking or buying or locking in a mortgage.

Here’s why:

Mortgage rates at historic lows: They can’t get any lower. Four to five-year fixed mortgages at 3 per cent are unheard of. It is lower than the variable rate that most Canadians have been paying for years. Rates have nowhere to go but up, either later this year or next. If you are paying a variable interest rate, lock in now.

Canada’s appeal: This country has everything going for it — a stable banking and political environment, steady real estate market, the natural resources people want and few social tensions. That makes us a safe haven in a volatile world.

Our immigrant draw: Because of the above, we’re a draw for immigrants, often wealthy ones. When they get here, they need a home. So in my view while the real estate market may level off in some areas of Ontario, it should stay strong in most of the GTA and likely Canada’s other large urban centres as well.

Mortgage defaults: According to CMHC, over 99 per cent of Canadians pay their mortgages on time. It quite a different picture in the U.S. where 7 million homes are in foreclosure and perhaps another 7 million homeowners are under water. This represents almost 15 per cent of all homes. So while the American housing market will likely be weak for the next few years, this should not occur in Canada. Our banks are not dumping homes onto the market, so there is no downward pressure on prices.

Recourse Mortgages: In many U.S. states, if you can’t pay your mortgage, the only thing the bank can do is foreclose; they cannot sue you for any shortfall. So when homes go under water, owners give the keys back to the bank. In Canada, loans are almost all Recourse, meaning if you don’t pay and there is a shortfall, the lender can sue you for the difference. This is another reason why, in my opinion, even if times do get tough, Canadian homeowners will find a way to make the payments until things improve.

Income-to-price ratio: Another misleading statistic is that in major markets, like Toronto, the average price of a home is now 4.6 times the income of the average Canadian. This same statistic was found just before the U.S. and UK markets went into the tank. However, if you look at median incomes of Canadians against the median cost of homes, this average comes down to around 3.5, which is not dangerous. Using averages are wrong. A person receiving social assistance will not buy a home, and should not be included in any relevant statistic.

High consumer debt: The warnings about rising debt ratios must be examined carefully. The Governor of the Bank of Canada is worried that the average personal debt ratio is now 156 per cent in Canada. This means a household making $100,000 per year, owes $156,000, two-thirds of which is mortgage debt. Why is this so bad? At an interest rate of 3 or even 5 per cent, the amount needed to service the debt is manageable. Most people do not pay off their mortgages in one year. Still, this is another good reason to consolidate your debt now, at these low interest rates, and lock in.

No guarantees: Nobody can predict the future and there’s always the possibility of a major economic shock. Yet, in a U.S. presidential election year, politicians will do whatever is necessary to prevent it. If the economy goes into the tank, so do re-election chances. The U.S. is already showing signs of economic recovery.

By Mark Weisleder found on Moneyville.ca/Toronto Star

THE NEW-HOME MARKET IS SHIFTING INTO HIGH GEAR

2012-01-27T14:06:00.000-05:00

January 27, 2012

George Carras

Special to the Star

Last year was a record for the GTA’s new condo market, which generated approximately $12.7 billion of new sales, a value roughly equivalent to the GDP of Iceland.

Earlier this month, RealNet Canada released the official 2011 results for the GTA new home market. Prior to the media conference, an exclusive briefing was held for more than 350 “RealInsiders.” The briefing provided detailed analysis and expert perspectives on the state of the housing market. (A special summary report of this private briefing is available for download at www.realnet.ca/GTA2011)

UPS and DOWNS

What went up in 2011? A lot. New highrise sales set a new record high of 28,466 units. Total new home sales also rose in 2011, which was the second highest year on record. A total of 45,926 homes sold last year, at a value of more than $22 billion.

In the 905, highrise market share is expanding. Almost one of every three new homes sold in the 905 last year was a highrise home. Also up is the lowrise new home index price, which closed the year at $545,372, an 8 per cent increase over 2010.

What went down? Total new home supply did, which in turn drove new home options for consumers to record low levels.

The highrise index price closed the year at $434,322, down 2 per cent from 2010. Highrise unit sizes have also gone down. In fact, the main reason highrise prices are down is because the index unit size shrank a further 52 square feet in 2011.

IN SYNC

The GTA’s new home and condo market were not operating out of step last year. Indeed, there was a high degree of synchronicity across most property markets. It appears everybody loved Toronto real estate in 2011.

REITs, pension funds, institutional investors and private investors all invested record levels of capital into commercial real estate property markets in 2011, topping the previous record set in 2007. And resales in 2011 were at the second highest level on record, according to data from the Toronto Real Estate Board.

The City of Toronto represented a growing share of the total new home growth in 2011, with 47 per cent of total new home sales occurring in the 416, almost double what it was in 2000. But the intensification shift was not limited to condos in downtown Toronto.

The move toward intensification gained momentum in the 905 as well. In 2000, highrise homes in the 905 represented approximately 5 per cent of total new home sales. In 2011, highrise sales represented 32 per cent of total new home sales in the 905. That means almost one of every three new homes sold last year in the 905 was a highrise home.

SLIMMER PICKINGS

Looking for a new detached home on a 45-foot lot? Better act fast — there are only 2 ½ months of supply left in active builder inventories. Some new supply is expected to come to market in the spring, but it will be limited.

How about a one-bedroom condo with a den instead? There must be an abundance of those, right? Think again. Based on the rate of sales and current active inventories, there are only 4.4 months of supply for a new one-bedroom condo with den across the GTA.

PRICE GAP

Lowrise and highrise prices moved in different directions in 2011. As of Dec. 31, the price gap was the widest on record, at $111,050. The lowrise new home index price, which includes detached, semi-detached, townhomes and links, closed the year at $545,372, which was $42,182 (or 8 per cent) higher than December 2010.

The highrise new home index price as of Dec. 31 was $434,322. That’s down $7,341 from December 2010, but the index unit size also shrank by 52 square feet.

What’s ahead in 2012 and beyond? Likely more of the same as we shift toward a taller and smaller GTA.

George Carras is the president of RealNet Canada Inc. His column will appear in New in Homes and Condos the last Saturday of every month. For more information, visit www.realnet.ca or follow on Twitter at @realnet_canada.

More Transit on the Way

2012-01-19T15:04:00.003-05:00

Mississauga Transit is preparing a modest bump in weekday bus service in its slow but steady quest to transform itself from an icon of unsustainable sprawl to a more transit-oriented city.

Just as TTC riders are crying foul over a 10-cent New Year’s fare increase and plans to cut service on dozens of routes starting next month, Mississauga is planning to add 1.5 per cent more service this year — 20,190 more hours on the road than in 2011.

Although the city budget won’t be final until next month, Mississauga has already put a stamp of approval on a $7 million increase over last year’s $132 million operating budget. That goes along with a 25-cent fare increase that pushes an adult cash fare to $3.25 at the end of this month.

But in a year when the city is contemplating a 7.4 per cent property tax increase and cuts to services ranging from community centres to road repairs, even a minor boost to buses is a victory for transit.

That’s not to say the city doesn’t face a lot of challenges.

Transit director Geoff Marinoff says Mississauga has taken the difficult decision of rationalizing some weekend services and, like Toronto, assigned priority to weekday rush-hour runs.

Reductions approved last year to eight bus routes, mostly weekend runs, kick in at the end of the month. Only one, the No. 33 bus that runs to Erin Mills Town Centre, is being eliminated entirely.

There simply aren’t enough destinations like the new City Hall skating rink that attract weekend riders, said Marinoff. In a community with 1.7 cars on average per household, people simply aren’t going to carry a hockey bag on the bus if they can drive to the arena, or do their weekly food shopping via transit.

That’s why the city is taking a longer view to investing in transit, focusing a lot of attention on students — which has paid off in a 36 per cent increase in student passes sold last year.

That follows a 2009 decision to freeze student fares for four years.

“Students are very environmentally conscious and by choosing transit they want to make a statement,” said Marinoff, who notes teens tend to travel in packs, and that makes transit a social experience.

Selling the family on the value of the bus is important in a system where fares only account for half of operating costs.

“If the parents value the service, whether they use it themselves or not, that’s just as important because to have that transit system is going to take some considerable investments to build it, but also to operate it,” he said.

Students, who represent 15 per cent of Mississauga bus riders, account for a significant portion of the 5.8 per cent overall ridership growth last year, showing that the system has turned around from a 2009 drop of 5.9 per cent.

Although higher gas prices haven’t hurt transit use, the new Mississauga Mi-Way brand of blue and orange buses has also increased the system’s profile, said Marinoff.

The first part of the city’s long-awaited bus rapid transitway is scheduled to open next year, and the city continues planning for a light rail line on Hurontario that would connect Brampton to Port Credit. There is no funding to build that project yet, however.

Found in Mississauga News

This home came with a funny smell

2012-01-16T10:57:00.001-05:00

Four years ago, Wanda Bourdages bought her first home in Saskatoon, taking possession on May 1, 2008. Soon after taking ownership, Wanda noticed a very powerful odour coming from the basement. It turned out that a board was blocking an unused coal chute and behind the board, in the chute was a foul-smelling black mould. When Bourdages visited the house with her agent before making an offer, she didn’t detect any unusual odours.

A few months later, Bourdages did what she thought was a minor renovation in the bathroom. The contractor found that the sub-floor was rotten, with more black mould. In the end it cost Bourdages more than $8,000 to get rid of the mould in both places.

She sued the seller and her real estate agent for the cost of the repairs in a case decided last spring. Her main contention was that the seller knew about these problems and should have disclosed them and her agent should have protected her. On the surface it seems she had a good case, but the judge ruled against her.

In court, Bourdages couldn’t prove the seller knew about these problems. Had she removed the board during the initial inspection of the home, she would probably have found the mould. The agent recommended that she have the home inspected, but she chose not to spend the money.

Wanda told the court that the agent said it was a sweet deal and she could double her money with little effort, and thus pressured her into buying. The judge disagreed, saying there was no proof that the agent pressured her to do anything.

Funny smells can be as important as visual defects when you inspect a home. Leaking natural gas can smell like a skunk. A rotten egg smell could be an indication of rotting drywall behind the walls. Urine odours may not just be a pet stain, but could also mean there are raccoons in the attic. Burning rubber smell could mean an appliance or an electrical outlet is overheated, and could lead to a fire. If it smells like mushrooms, it could also be mould.

Owners may not notice these odours if they build up over time. They get used to them. Some home inspectors will use specially trained dogs to detect these odours, as there is usually no visible evidence that you can point to.

I have had many buyers claim that during the initial home inspection, the basement had just been freshly painted and the sellers explained that this was why they had fans operating. Or the reason for the fans was because of the humidity in the house. Problems with mould were discovered soon after closing. Other examples of sellers trying to cover up bad smells or other similar problems could be new baseboards in some of the rooms, especially the basement or perhaps over the garage.

Many agents will recommend that air fresheners be used throughout the house before open houses. Be careful that this is not being done to cover something up.

If you are selling your home and you know about some strange odours, don’t try to cover them up. Find out whether there is a problem by calling in a professional, and then fix it before you put your home up for sale. If you are buying any home, especially older ones, consider additional environmental inspections that can detect hidden odour problems, and be very wary when you notice very recent renovations or painting that was done. They may have been done deliberately to cover up a problem.

Being properly prepared when you inspect a home should save you unnecessary aggravation later.

By Mark Weisleder found on Moneyville/Toronto Star

Builders Fear Civic Work Stoppage

2012-01-13T10:02:00.001-05:00

Condo developers are bracing for a civic walkout or lockout they warn could cost the industry millions, halt construction and even delay the ability of buyers to take possession of their units.

Housing developers have been trying to fast-track requests for approvals and building permits over the last few weeks out of fear a civic shutdown could cripple the hottest condo market in North America, if not the world.

“The worse-case scenario is that a prolonged work stoppage could affect the momentum of the industry,” says Paul Golini, executive vice president of Empire Communities and chairman of the Building Industry and Land Development Assoc. (BILD).

“For us, time is money. It affects our bottom line. It affects consumers because it can delay projects. This is the unexpected event that you can’t plan for.”

With some 36,000 condos now under construction across Toronto and almost 128,000 in the planning stages, the stakes are high. They were pushed even higher Thursday when the city declared a stalemate in bargaining with one of its major unions.

The city has requested a “no board” declaration from the province. If granted, that would start the clock ticking on a possible work stoppage by Toronto’s outside workers with concerns in the building industry that inside workers will follow or be locked out. .

Those inside workers would include city building and planning staff who review and approve virtually every stage of condo — and house — construction in Toronto, from reviewing site plans, issuing building permits, inspecting construction sites as well as granting occupancy permits that assure buyers the project is safe for move-in.

That means not only would any new or proposed buildings be affected, but move-in dates could be delayed.

City staff even approve registrations that transfer ownership of units from the developer to the purchaser.

Calls from the Star to city officials for comment were not returned.

Delays would not only mean higher carrying costs for developers, but could jeopardize project timelines contingent on each phase of a project being completed by a specific date.

“We’re talking millions that is at risk here if a work stoppage goes on for any period of time — even moments,” says Steve Upton, vice president of development for condo giant Tridel.

Tridel, along with BILD and other developers, have been meeting with city officials and staff since last summer to stress the impact a work stoppage could have on the building industry.

There are also some concerns a strike or lockout could scare off investors who have looked to Canada as a safe haven and helped drive up demand for new highrises.

Condo construction is credited with almost single-handedly boosting Toronto’s tax base by about $7.5 billion in 2011 over 2010. Thursday the city tapped into about $8.8 million of extra tax revenue from the building boom to restore a host of city services — from library hours to indoor swimming pools — that had been slated for cuts.

While city managers would theoretically step in for staff, the industry is already trying to cope with staff shortages and high turnover — compounded by the sheer volume of new condo projects — that has been slowing the ability to get approvals in a reasonable time, industry insiders say.

Just reviewing the complex plans requires a special level of expertise largely unique to building and planning staff, builders warn.

By Susan Pigg found on Moneyville/Toronto Star

Canadian home prices will rise again in 2012, but slower than last year: LePage

2012-01-12T15:00:00.002-05:00

TORONTO - Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to one of the country's largest real-estate sales organizations.

Royal LePage, which franchises brokerages across the country, predicted Thursday that the national average price for resale homes will increase this year by 2.8 per cent by the end of 2012.

It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.

"Widespread calls for a major real estate correction in 2012 simply can't be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand — albeit at a slower pace," said Phil Soper, the president and CEO of Royal LePage Real Estate Services.

National averages don't tell the whole story, however, since there are wide variations depending on the type of home and location.

In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter of 2012, up 10.9 per cent from a year ago. By contrast, two-storey homes in Atlantic Canada had an average price of $200,000 or less in several cities where increases were fairly flat compared with a year ago.

In Toronto, which is usually the country's second-most expensive real-estate market after Vancouver, Royal LePage found strong price gains for most housing types in the fourth quarter — due to a lack of available properties and steady demand.

The Royal LePage forecast came as the Statistics Canada reported the price of new homes rose again in November, led by gains in Toronto and Montreal.

The government agency's new housing price index rose 0.3 per cent in November, after a 0.2 per cent increase in October. On an annual basis, the index was 2.5 per cent higher in November compared with November 2010.

The largest year-over-year price increases in reported by Statistics Canada were in Toronto and Oshawa, Ont., where they were up 6.2 per cent.

In 2012, Royal LePage expects that real estate values in Toronto will increase 2.6 per cent compared to 2011 — slightly slower than the national growth rate.

In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.

Some economists have said housing prices in certain Canadian markets, including the Toronto area, may be too high to be sustainable and are due for a correction. However, LePage said housing prices have been high in Toronto because demand has outstripped supply.

"Inventory has been a challenge for Toronto's potential buyers throughout 2011 and this restricted supply has put upward pressure on prices," said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd.

"Standard condominiums in the resale market saw a more modest increase due to a healthier supply that was created by newer units coming online. However, demand for older units has increased as they are generally larger in size and preferable to (people down-sizing from houses) who are used to more space."

In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter, compared with the same period of 2010.

In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren't typical.

In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.

By The Canadian Press

Loyola Construction on Track

2012-01-06T14:11:00.000-05:00

The new Loyola Secondary School is expected to open on schedule in September.

Dufferin-Peel Catholic District School Board spokesperson Bruce Campbell told The News yesterday that, "construction of the new building is progressing well."

When completed, the new west Erin Mills school, on Sladeview Cr. near Burnhamthorpe Rd. and Ridgeway Dr., will offer nine out of the 11 Specialist High Skills Major programs. Those are programs that are customized to students' interests and talents while preparing them for a successful post-secondary transition into apprenticeship training, college, university or employment.

The school will also have a football/track/soccer field, the cost of which was split with the City of Mississauga. Loyola students and community members will share the space.

In the groundbreaking ceremony last June, the community reflected on its decade-long battle for a new school to address long-standing concerns of an aging building, overcrowding and inadequate space.

Loyola, currently located at South Common Crt. and Burnhamthorpe Rd., was originally built as an elementary school.

Wards 2 and 8 trustee Sharon Hobin, who's been at the forefront of the fight, said last June that the school community endured, "a series of disappointments, too many to mention, but always we had hope and always we had courage."

By Julia Le found on Mississauga News

Real Estate Favoring Sellers Heading into 2012: CREA

2012-01-04T14:24:00.001-05:00

The national real estate market is balanced headed into 2012, but with a slight edge for sellers, according to the latest report by the Canadian Real Estate Association (CREA).

Sales were up for a third straight month in November, and activity rose in 60% of all local markets. Average home prices are also up 4.6% from a year ago, but it is the smallest increase since January.

Prince Edward Island was an exception for the national price gain, with selling prices dropping about 11% there since last year. In Newfoundland, average prices were up more than 12% from a year ago.

“The Canadian housing market is proving resilient in the face of ongoing global economic and financial uncertainty, to the benefit of Canadian economic growth,” said Gary Morse, CREA’s president. “That said, some housing markets are picking up, while others are holding steady or consolidating.”

The Halifax-Darmouth region, for example, had a record amount of sales in November, offsetting a dip in Toronto.

National sales activity, like last year, picked up around November. But this year, the price gains are more modest, having already peaked in the spring, said Gregory Klump, CREA’s chief economist.

“With interest rates expected to remain low for longer, the housing sector will no doubt be closely watched for signs of excess,” Klump said. “That said, current trends for resale housing and new home constructions suggest that tightened mortgage regulations are working as intended and fostering economic stability in Canada.”

A quarterly economic forecast by TD Economics economists , also out today, suggested those “signs of excess” are already visible in the housing market..

“The housing market will enter 2012 in a position of moderate overvaluation in existing home prices and an overhang of unsold inventory in the new home market,” said the TD Economics authors. “We anticipate that these excesses will unwind over the next few years, partly reflecting prospects for a normalization in interest rates beginning in 2013.”

By Editorial team found on Real Estate Watch

Housing Sale Forecast for 2011 was Wrong - Will history repeat for 2012?

2011-12-22T19:15:00.000-05:00

TORONTO - Francesca Asante-Frempong, a self-described "late bloomer," believes buying her first home at age 35 will have been worth the wait if economists are right about dwindling competition and ultra-low mortgage rates persisting into 2012.

"It's encouraging to know that, as far as being able to afford something, any time from now would be a good chance to do that," the newlywed said in an interview from England, where her husband is living until they find a home.

Asante-Frempong, a registered nurse in Toronto, says she's optimistic she can take her time searching for an affordable starter home in the city, one of Canada's hottest and most expensive real estate centres.

And the likelihood that mortgage rates will remain low well into next year means she doesn't have to rush out of her parents home and into a bidding war, she added.

"I think that at least, although I didn't invest in a condominium say four years ago, I'm ready to go right into a house where my friends (who did) may not be able to at this point."

First-time homebuyers like Asante-Frempong are poised to comprise an even bigger proportion of real estate activity next year. Sales and prices are expected to stabilize as demand from owners intent on upgrading while mortgages are cheap dries up after more than two years of stimulative interest rates.
Low overnight lending rates at the Bank of Canada — which have been at one per cent since September 2010 — affect variable mortgage rates and other loans tied to banks' prime rates.

Meanwhile, government debt crises in Europe and the U.S. are keeping fixed rate mortgages at
ultra low levels by depressing the bonds that back them.

Mortgage rates had been expected to rise in 2011, increasing the cost of home ownership and keeping house prices in check. That was supposed to lead to a slowdown in the housing market, according to the predictions of several top economists at the end of 2010.

They were wrong. Now they believe that easing is coming in 2012.

A looming economic slowdown, tepid wage growth, unaffordable home prices and record consumer debt levels could put downward pressure on the market next year.

But those troubling signs, as well concerns about the domestic impact of turmoil outside Canada's borders should also push the Bank of Canada to leave interest rates on hold, fostering a friendly environment for home buyers.

Downsizing baby boomers, new household creation driven by a maturing Generation Y and a steady stream of immigrants are also likely to stimulate healthy demand.

However, economists project activity will moderate from the surprisingly robust levels seen this year.
Many predicted home price appreciation would be tempered by economic indicators that pointed toward slower income growth and weak consumer confidence this year, said Julie Ades, an economist at the Conference Board of Canada.

"These factors suggested that the market would cool this year, which would have led to slower home price growth," she said. "But it didn't happen."

Instead, home prices for the first 10 months of the year have risen 7.8 per cent year-over-year, according to the Canadian Real Estate Association.

Gregory Klump, CREA's chief economist, hypothesized last year that 2011's housing market would be summarized in one word: "boring." Looking back, the description he now uses is "volatile."
Home buying behaviour in 2011 was at odds with consumer confidence, which indicated record debt levels and a potential downturn in the economy would curb appetites for major purchases.

"Ultimately, it's not what they said, but what they did; and what they did was they went out and bought more homes," Klump said.

One of the most surprising aspects of the market — which led CREA to upwardly revise its forecast several times — was the frothy activity in Vancouver's high-end home market during the opening months of the year, Klump said.

An influx of foreign investment drove Vancouver average home prices up as much as 25 per cent year-over-year to nearly $900,000, skewing the national average home price higher.
But perhaps even more surprising was that robust activity in Vancouver, Toronto and other hot markets, did not drop off nearly as much as expected after the Finance Minister introduced new mortgage rules in March, Klump added.

Lowering the maximum amortization period and increasing the down payment on an investment property were part of Jim Flaherty's third move to curb risky borrowing in as many years.
Bank of Canada governor Mark Carney also repeatedly issued warnings to Canadians this year that piling on debt could sink the worse off households into bankruptcy in the event of sudden interest rate hikes or an economic shock.

It appears that those official warnings have been no match for the lure of a cheap borrowing environment as recent Statistics Canada data shows average household debt in Canada hit a new record high of almost 153 per cent to disposable income in the third quarter.

Low interest rates have kept buyers competing for homes and driving prices higher — a dangerous scenario based on overly confident investment behaviour, according to David Madani, an economist at Capital Economics.

"This could turn around on a dime, and I think a lot of it is predicated on the expectation that house prices will continue to nudge higher and that will compensate people for the additional debt."
The stronger than expected housing market this year only fuels the possibility of a collapse in prices, Madani warned. "We're even more nervous one year later about the Canadian housing market," he said. "Trying to predict a turning point is obviously tricky, but we don't think that this level of activity in the housing market is sustainable."

A recent report in The Economist suggests Canadian homes are 29 per cent overvalued, rising at one of the fastest paces, 6.2 per cent since last year, among the 20 countries surveyed. Since 2007, prices are up 22 per cent, it determined. And the extended low interest rate "does add a little bit more fuel onto an already hot fire," Madani said.

But he predicts buyers and sellers could reach a pivotal stand off as soon as 2012 because households can only borrow so much before demand is exhausted — and an interest rate hike isn't the only trigger for a sudden downturn.

Just as "irrational faith" has helped to buoy the housing market this year, the "animal like herd mentality" that took a toll on stock markets this year and exacerbated the U.S. housing crisis in 2008, could take over in the Canadian housing market. Madani predicts 2012 will be characterized by the "shattering of blind faith in ever-rising house prices." He predicts about 400,000 homes will be resold next year, a much greater fall than CREA's projected 0.5 per cent decline to 451,200 homes sold.
CREA —which has yet to release home sales data from November or December — projects sales this year will be up 1.4 per cent from 2010, to 453,300 homes.

But even CREA's optimistic Klump acknowledges there are downside risks that could lead to a broader slowdown in the housing market. "If Canada gets dragged into recession by economic and/or financial market developments beyond its borders, certainly that could really squash consumer appetite to take on more debt and so with it the demand for resale housing," he said. On the other hand, he added, just as economists were wrong about a slowdown this year, here could be more charge left in the market, due to a continuing low-interest rate environment

Condo on Sale for $3.2 Million

2011-12-20T10:57:00.000-05:00

It sits at the very top of Mississauga’s already iconic tower, boasts 180-degree views of the lake and the city’s skyline, comes with four parking spots and priority use of the elevator — and it can be yours for $3.2 million.

In a deal likely to generate a lot of international interest, the owner of the penthouse suite at 60 Absolute Dr., better known as the Marilyn Monroe building for its curvy shape, is putting the unit up for sale.

“It will be the most expensive condo ever sold in this city,” said Mississauga agent, who’s handling the transaction for the anonymous Argentinean owner.

“The record for a condo sale is $1.5 million, so this will be double”.

The current owner purchased the 56th-floor unit when it was first put on the market a few years ago. He had planned to move to Mississauga, but his plans changed.

One of five towers being built by Fernbrook Homes and Cityzen Development Group at the corner of Hurontario St. and Burnhamthorpe Rd., the skyscraper is the tallest suburban building in all of North America, according to Wikipedia.

The project was the result of an international design competition won by Beijing-based architect Yansong Ma and his firm MAD. Thanks to its cutting-edge design, it instantly garnered immense global attention.

There have already been several serious enquiries from abroad, from places like China and Brazil, whose marketing includes taking out ads in international publications.

“Since the suite is not completed, the buyer can put the finishing touches — their personal stamp — on it,” he said. “However, it presents some selling challenges because it’s difficult to show the unit in its unfinished state.”

The future owner will enjoy is a 3,401-sq.-ft. floor plan that features a spacious master bedroom with ensuite washroom, two guest bedrooms, his and hers matching libraries, a living room, a formal dining room with seating for 14 and an attached service area, a kitchen/family room, galleria and a home theatre.

The agent says “It’s an absolutely amazing unit that boasts every fine finish and detail. The owner spared no expense. The purchaser — and there’s one out there — will be buying into a condo lifestyle that’s pure luxury.”

By Joseph Chin found on Mississauga News

Visit with Santa - Fun for All

2011-12-19T16:19:00.000-05:00

Happy Holidays

to All

Every year at this time Brandy and I go to visit Santa at Erin Mills Town Centre - not sure who has more fun - OK I will admit I still enjoy sitting on Santa's lap & having the chance to relive my childhood - if only in my dreams.

Brandy and I take this opportunity to enjoy time with other families, excited children & anxious pets who are all waiting to see Santa & have their pictures taken while sharing with him what they want for Christmas.

Stories of the Season are shared as we wait for our time with Santa. I find it fasinating the many stories shared of how different cultures will be celebrating the upcoming holidays ... we are truly a multi-cultural society.

One thing seems apparent - everyone is enjoying the fun & warmth of the season - it is contagious.

Brandy and I wish you & your loved ones all the best of the Holiday Season - however you celebrate, enjoy in Health & Happiness. If you are travelling, be Safe!

All the best for 2012.

Susan & Brandy

Toronto House Prices Hit New Record

2011-12-19T10:46:00.001-05:00

The Toronto housing market slipped back into sellers’ territory in November, helping propel prices even higher to a record average of $481,305.

That’s a 2.1 per cent increase from October and, when adjusted for seasonal fluctuations, almost 10 per cent more than the average GTA home was worth a year ago, according to figures released Thursday by the Canadian Real Estate Association.

In fact, November sales across Canada were 7 per cent above the 10-year average for the month, resulting in the fourth highest level of sales on record for what’s typically the slow season, CREA noted.

While no one is uttering the dreaded B-word — bubble — as did Britain’s venerable magazine The Economist when it recently warned Canada’s housing market may be 25 per cent overvalued, the warning is clearly of concern among the country’s housing experts.

“With interest rates expected to remain low for longer, the housing sector will no doubt be closely watched for signs of excess,” say CREA’s chief economist Gregory Klump.

“That said, current trends for resale housing and new home construction suggest that tightened mortgage regulations are working as intended and fostering economic stability in Canada.”

A record November of sales in Halifax-Dartmouth, up a seasonally adjusted 34.7 per cent, helped offset a 10.5 per cent decline in sales in Toronto where 7,773 homes changed homes.

New listings across the GTA were down 4.4 in November while prices climbed by 9.7 per cent.

Despite economic turmoil in the rest of the world, Canadians continue to see real estate as a sure thing: A total of 432,048 homes have traded hands across Canada between January and the end of November, up 2.1 per cent from the same period last year, CREA says.

By Susan Pigg found on Moneyville/Toronto Star

Avoid Top Five Home Buying Errors, Ontario Realtors Advise

2011-12-15T10:04:00.001-05:00

As housing market increases homebuyers need to be informed about costly oversights

TORONTO, Dec. 13, 2011 /CNW/ - According to a recent RBC Report, the number of homes for sale in Ontario is on the rise and affordability province-wide is stable. The rush to buy with more available homes on the market could mean more mistakes made by consumers.

A panel of experts from the Ontario Real Estate Association (OREA) board of directors advises against making hasty or uninformed choices by avoiding five common errors:

1. Not knowing what you can afford

Barbara Sukkau, president of OREA says that mistakes made in a competitive environment can be costly and restrict lifestyle choices.

"Many people don't know that there's an easy way to calculate how much house they can afford to determine, regardless of competing bids, what lifestyle they want to maintain within the market," says Sukkau. "In addition to the cost of the home, potential buyers should consider the land transfer tax, closing costs, moving costs and leave room for any unforeseen extras."

In fact, Realtors often use a calculation called the Gross Debt Service Ratio.

2. Not preparing your finances, or getting pre-approved

"Many sellers will require a potential buyer to get pre-approved. When there are competing bids on the house of your dreams, pre-approval could give you the edge," says Patricia Verge, OREA board member working out of Ottawa.

"Pre-approval can take up to a few days after you provide your bank with things like verification of income and down payment," Verge adds.

If a buyer meets the lender's requirements, then written confirmation of pre-approval will be provided. According to the Canada Mortgage and Housing Corporation, this pre-approval is time sensitive and is not a guarantee of receiving a mortgage loan.

Verge also cautions buyers against using their pre-approval as a final budget. "Potential buyers should balance their debt load and other financial commitments with what the bank is willing to lend," she says.

3. Not knowing your must-haves

Tom Lebour, OREA board member working out of Mississauga, notes that his clients aren't always sure about what they're looking for.

"Clients often fail to consider what amenities are in the neighbourhood they're looking to buy in, especially when relocating from the city to the suburbs. How ‘walkable’ is a neighbourhood to places like grocery stores, schools and banks? This feature is important to many homebuyers, but they can fail to think about it in the excitement about the number of bathrooms a house has. Create a list by thinking about a day in your life and the various things important to you and your family."

4. Not getting a home inspection

"I always advise buyers to have their own home inspection done, even if the seller offers the results of a previous inspection and even if others are keen to put in an offer," says Phil Dorner, OREA board member working out of Belle River.

"Ensure that you have a qualified and bonded home inspector perform a full inspection as part of your offer. An investment of a few hundred dollars could save you thousands down the road."

5. Getting emotions involved in negotiations

Buyers and sellers will often let their emotions get the best of them, says Mike Douglas, OREA board member from Barrie.

"Emotions can get in the way of negotiations because sellers inadvertently assign real value to their memories, which don't hold financial value for the buyer. We do our best to help our clients keep their emotions out of the equation," Douglas says.

About the Ontario Real Estate Association

The Ontario Real Estate Association represents 50,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services.

The real estate panel members provided input on common home buying and selling mistakes over email from November 8 to November 22. The panel consisted of nine OREA board spokespeople including representation from St. Catharines, Timmins, King City, Barrie, Oakville, Belle River, Mississauga, London and Ottawa.

Found on CNW – Canadian Newsire

Royal LePage Contest Dubbs Three of Canada's Neighbourhoods the Greatest in the Country

2011-12-14T14:52:00.001-05:00

Three lucky Canadians receive cash prize for winning submissions

TORONTO, DECEMBER 13, 2011 – Canada is known as one of the leading countries in the world to live, with its dynamic big cities and charming small towns. In a contest created by Royal LePage called “My Great Neighbourhood,” three Canadians have proclaimed their cities the finest in all of Canada.

Entries for Collingwood, ON (first place), Ladner, BC (second place), and Marysville, NB (third place), rose to the top of more than 500 submissions by Canadians nationwide this past summer and fall. Now, with cash prizes of $20,000, $3,500 and $1,500 respectively, the winners are celebrating with their communities.

“We love Collingwood,” said first place winner Chris Lesage, “and were so excited to share the city with Royal LePage and Canadians across the country! Our neighborhood is a safe and friendly place for us to live and grow as a family, and we couldn’t be more proud to have been named number one.”

Highlighting Collingwood’s best attractions in a creative and high-quality video, Lesage included the community’s green spaces, safe streets, historic downtown and more, as reasons Collingwood is his ‘great neighbourhood’.

Second place winner Melissa VanDiermen used the neighbours themselves to share Ladner’s great features, showcasing the close-knit community, the focus on locally owned shops, and the town’s proximity to other popular destinations.

Rodney Mann, Marysville’s third place winner, leveraged the city’s 150th anniversary for his submission, teaching viewers about the town’s history and importance in Canada’s past.

“It was such an honour to host a contest like this, because we gave Canadians an outlet to express their love for where they live,” said Phil Soper, President and Chief Executive, Royal LePage Real Estate Services. “At Royal LePage we know how many great neighbourhoods there are in this country, and reviewing the submissions was a testament to how proud people are to live in them.”

All contest entrants were asked to upload a video, or as many as five images to the My Great Neighbourhood web site, along with a short explanation outlining what it is that makes them so passionate about their community.

After the voting period for the public, the entries were evaluated by a jury. The numbers of Facebook votes were tallied for consideration, and then winners were selected based on how creative, original, informative, and compelling their entry was.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of 14,000 real estate professionals in over 600 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage Shelter Foundation, dedicated to supporting women's & children’s shelters and educational programs aimed at ending domestic violence. Royal LePage is a Brookfield Real Estate Services Inc. company, a TSX-listed corporation trading under the symbol TSX:BRE.

Goal Setting for Success in 2012

2011-12-14T10:33:00.001-05:00

How to Set Attainable Goals in 2012

Business & Personal

It’s that time of year again, when we begin to think about the future and what we’d like to accomplish in the New Year. Clearly defined goals are vital to creating the life that you imagine.

Setting goals can be an intimidating process for many. However, the information we’re sending you this month explains how to create feasible and measurable goals that will drive you forward and help you achieve your dreams. While the first page explains how to set SMART goals through visualization, page two offers suggestions to help you overcome the common obstacles to achieving your goals. Feel free to share this useful information with your family or friends.

Some condos have rental restrictions

2011-12-14T09:41:00.000-05:00

When I was condo hunting earlier this year, a big consideration was whether I should buy in a complex that allowed rentals.

Condo buildings have bylaws that might restrict whether you can rent your unit out, so it pays to check the bylaws carefully before you make an offer.

Rachelle Berube, President of Toronto's LandlordRescue.ca believes that for owners who don’t intend on renting, a building that has rental restrictions, or does not allow rentals at all, might be best.

“Owners have a stake in the building,” she says. “For the most part, they understand that if they dirty the building, they pay for the clean up – so they just don’t do it. This applies to a wide range of issues [like] noise, cleanliness, pet restrictions, and damages. In a perfect world, you can’t tell the difference between owners and renters. It’s only when things go wrong that it becomes an issue.”

While having any sort of rental restrictions will always lessen the pool of potential buyers, it doesn’t seem to negatively affect the price in which the unit will end up selling for.

For example, in a downtown Vancouver Ownership, Occupancy, and Rentals study conducted by BTAworks, the consulting division for Bing Thom Architects, median values for owner occupied units were generally valued over $30,000 to $40,000 more than non-owner occupied units.

A Realtor and condo specialist at Park Georgia Realty, believes it’s because owners often purchase with their wants in mind.

“Owners are willing to pay more for units with a better layout, or a nicer view,” he says. “They generally are more willing to invest money to improve their units and make them nicer, because it helps them improve their overall quality of life – which is why owner occupied units usually sell for more. Investors who rent out the units they purchase are only concerned about their bottom line.”

Some also caution that while allowing rental units might open up the market to more buyers, it could also affect the price of the owner occupied units in the building when it comes time to sell.

“A rental unit in a condo building will typically take longer to sell, and typically won’t sell for as much compared to an owner-occupied unit. Which means that an owner occupied condo in the same building that is for sale, would have to use the rental unit price as a comparable.”

A 2009 Vancouver Condominium Rental Study showed that 68 per cent of downtown Vancouver condos either prohibited rentals completely, or only allowed rentals with restrictions. So if you plan on purchasing and living in your condo, you immediately open up your options to all condominium buildings. However, if you are set on owning in a building where you could potentially rent in the future without any restrictions, you would be limiting yourself to just 32 per cent of the condo market.

I ended up purchasing my home in a building that does not allow rentals. The reason I chose to live in an owner occupied building is because I have no ambition to become a landlord I also feel that living in an owner-occupied building creates a sense of community that I was never able to find in the past condo rental units that I’ve lived in.

By Krystal Yee found on Moneyville.ca/Toronto Star

This couple had a two-dog condo problem

2011-12-13T15:22:00.002-05:00

Jack and Susan thought they found the condominium of their dreams at 5 Rowntree Rd. in the Kipling and Finch Aves. area of northwest Toronto. They loved the building, the view and the amenities. They could take their two dogs on long walks in the area.

So they bid on the unit, got involved in a bidding war and won the auction. The deal was conditional on their being satisfied with the building’s certificate of status.

The status certificate has all the condo rules along with other important information, such as who the management company is, the financial statements, the amount of money in the reserve fund and when the last reserve fund study was completed.

It was at that point that Jack and Susan came to see me. It turned out the rules only allowed one pet and the pet could not be more than 25 pounds. Their dogs weighed closer to 50 pounds each and they wanted to know if this rule could be easily changed.

Since the rule was found in the condo declaration, it would require 80 per cent of owners to change it. I told them that in my experience, this was unlikely to happen. It is very hard to get condominium owners to agree on anything, and pets are a very sensitive subject. Many owners choose buildings precisely because there are pet restrictions.

They told me that they heard of some owners who had two dogs or heavier pets and no action was brought against them. Could they rely on this, buy the unit and hope no one would make a fuss? This is a difficult question because it raises the issue of what happens when a condo building is not enforcing its rules. Does it allow others who buy in to do the same thing?

In some legal decisions, when boards did not enforce their pet rules, they could not take the position against new owners who brought pets with them. In other cases when buildings restrict pets, owners have made Human Rights arguments, claiming that they relied so much on their pet that to force them to remove the pet would leave them emotionally disabled. Still, I could not give them any guarantee that they would be able to keep their dogs if they moved in.

In the end, they decided to cancel the deal, as they did not want to take the chance that they would have to remove their dogs later. My question is: Why were they bidding on this unit in the first place?

A key step in your research of resale condos is to find out what the status certificate says first, before you bid. Anyone can order it for $100. When you interview real estate agents, ask them if they have this information. The top agents know which buildings are well run and which aren’t. They also should know which buildings have unusual restrictions. You should too.

If you are renting a condo and the building has pet restrictions, make sure that the condo rules are attached to the lease and that your tenant understands that they are not permitted any pets.

Finally, if a pet is not supposed to be in your building or if it is bothering the other unit owners, you need to report this to your board as soon as possible. Then the board or the management company needs to get involved quickly to work with the owner to solve the problem, or if necessary, declare the pet to be a nuisance and obtain an order to remove it from the building.

By Mark Weisleder found on Moneyville.ca/Toronto Star

Royal LePage Real Estate Services Ltd. - now 3rd Largest Brokerage in the World

2011-12-12T20:06:00.000-05:00

Canada’s largest real estate brokerage company is expanding, as Brookfield Residential Property Services pays $131-million to absorb U.S.-based rival Prudential Real Estate and Relocation Services.

The company – a unit of of Toronto-based Brookfield Asset Management Inc. (27.78-0.44-1.56%) and best known in Canada for its Royal LePage brand – said it would take over its rival in a deal that will make it the third largest brokerage in the world, with more than 80,000 agents spread through North America.

The takeover also gives it a foothold in nine other countries, including China, Brazil and India.

Prudential – a financial services company – stepped into the real estate market in 1987. While Prudential said in a statement that “proceeds of the sale” would be $110-million, it added that the net book value of the real estate division was $25-million.

It didn’t sell the division out of desperation – in its last quarter it reported a profit of $1.5-billion ($3.06 a share), up from $1.1-billion (or $2.46) a year ago. Prudential’s Earl Lee will continue to lead the U.S. real estate business, and said now that it is untethered from its massive parent it can more aggressively pursue global growth.

“Prudential’s real estate and relocation services businesses join a global company with a track record of over 100 years of success,” he said. “We’re excited to become part of a company that is focused on and deeply immersed in the real estate sector and is in the business for the long-term.”

Brookfield operates its residential brokerage businesses through a franchising model.

In Canada it operates as Royal LePage and La Capitale Real Estate Network and Johnston & Daniel. It franchises the Real Living Brand in the United States, and will continue to licence the Prudential brand as well.

Brookfield Residential has benefited from a strong Canadian real estate market, with a steady royalty flow from its franchises generating a steady stream of cash. But its stock has been beaten back in 2011, with investors pushing its shares down 13 per cent.

Toronto Market Healthy in November

2011-12-09T11:26:00.002-05:00

Greater Toronto Realtors reported 7,092 residential transactions through the TorontoMLS® system in November – up 11 per cent in comparison to November 2010. At the same time, the number of new listings was up by 14 per cent in comparison to last year.

“We have seen strong annual sales growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Toronto Real Estate Board (TREB) President Richard Silver. “The market has also become better supplied, with annual new listings growth outstripping that of sales. As this trend continues into 2012, we will see more balanced market conditions.”

The average price for November transactions was $480,421, representing an increase of almost 10 per cent in comparison to $437,494 in November 2010.

"Despite strong price growth this year, the housing market remains affordable in the GTA," said Jason Mercer, TREB’s Senior Manager of Market Analysis. "The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities. Currently, this share remains in line with generally accepted lending guidelines. Given this positive affordability picture, average price growth is forecast to continue in 2012, albeit at a more moderate pace."

Found on Toronto Real Estate Blog on December 6, 2011 in Toronto Real Estate Board, Toronto Real Estate Market

Real Estate becoming more Affordable: RBC

2011-12-08T09:59:00.003-05:00

Owning your own home became slightly more affordable in the third quarter of 2011 thanks to continuing low interest rates, according to RBC's latest study on housing affordability.

The affordability measure captures the proportion of pre-tax household income that would be needed to service the costs of owning a certain type of home. In the third quarter, that index fell for all categories of housing.

"Housing affordability levels are quite good in most parts of Canada and will pose little threat to overall housing demand," said Craig Wright, senior vice-president and chief economist. "The Vancouver-area market continues to be a major exception, with sky-high property values in upscale neighbourhoods making it both extremely unaffordable and the most at risk of a downward correction."

The uncertainty affecting the global economy, with Europe mired in a debt crisis, is helping to keep interest rates close to historic lows. Rates are unlikely to rise until the middle of next year, and even then only gradually, RBC said.

The cost of owning a detached bungalow dropped in most major cities in the third quarter, with the exception of Toronto and Calgary, which ticked higher.

Although overall affordability improved slightly in the three months to September, housing costs in Toronto, Montreal and Ottawa are also in an "uncomfortable" range.

"We expect to see further slowing in the pace of home price increases next year, as housing demand levels out," said Wright. "These factors will set the stage for a period of relative stability in affordability trends in Canada."

According to the index, the higher the reading, the less affordable it becomes to own a home.

For example, an affordability reading of 50% means that home-ownership costs, including mortgage payments, utilities and property taxes, take up 50% of a typical household's monthly pre-tax income.

The index in Vancouver stands at 90.6%, Toronto 52.1% and Montreal 40.9%.

Found on Toronto Sun on November 25th 2011

Toronto Housing Market Still On Fire

2011-12-07T12:49:00.001-05:00

The country’s largest housing market continues to post double digit year over year price increases — likely meaning the national average will get a boost when the figure is released by the Canadian Real Estate Association on Dec. 15.

The Toronto Real Estate Association says the average price of a detached home in the 416 district climbed past the $750,000 mark. Detached home prices rose 12% from a year ago to $776,017. It’s a little cheaper in the suburbs with the average detached home in 905 selling for $540,299, a 10% jump from a year ago.

“We have seen strong annual growth through the 2011 fall market. The increase in transactions has been broad-based, with strong growth across low-rise and high-rise home types throughout the Greater Toronto Area,” said Richard Silver, president of TREB.

Sales across the GTA climbed to 7,092, an increase of 11.1% from a year ago. Supply kept pace with new listings climbing to 9,786 in November for a 14% jump from a year.

The numbers of days on the market has also been shrinking with the average home selling in 29 days, a 14.9% drop from the 34 days it took a year earlier.

The Toronto housing boom appears to be across all home types. In the semi-detached category there was an 11% price increase from year ago to $454,262 on a GTA wide basis. Townhouses were up in price 8% to an average of $367,727 while condo apartments prices also rose 8% during the same period to an average of $338,251.

Despite the surge, TREB maintains the GTA market remains affordable. “The correct method of assessing affordability is to consider the share of the average household’s income that is dedicated to mortgage principal and interest, property taxes and utilities,” said Jason Mercer, TREB’s senior manager of market analysis. “Currently, this share remains in line with generally accepted lending guidelines.”

By Garry Marr found on Financial Post

Mortgage Rates are Poised to Rise

2011-12-07T09:25:00.003-05:00

Mortgage rates could be drifting up again soon, even if the Bank of Canada is standing pat for now, experts say.

Already over the last few months, variable-rate mortgages have started to climb, erasing much of the advantage they had over traditional fixed-rate mortgages, says Kerri-Lynn McAllister, community manager at RateHub.ca. McAllister says we can expect more of the same.

“A few months ago, there was basically a one per cent spread between fixed and variable. Now it’s .2 or .3,” said McAllister. “I don’t think they’re done. We’re still seeing banks increase their premiums.”

Part of the reason for the hike, says McAllister, is that with mortgage rates as low as they’ve been, banks have a harder time making money.

“That’s definitely a way to improve their margins,” McAllister said. “It also creates more incentive for people to move over to fixed rates. The fixed rates are definitely more profitable for them.

Even fixed rates could be in for a rise in the new year, suggests Joseph Haimowitz, principal economist at economic think tank Conference Board of Canada.

“I think they’ll probably rise slightly in anticipation of Bank of Canada hikes, especially if the Bank communicates its intentions clearly. No bank wants to lend out money at 4 per cent today if its costs are going to be at 5 per cent next week,” said Haimowitz.

He expects fixed mortgage rates could rise by up to .25 per cent by mid-2012.

Tuesday, Bank of Canada governor Mark Carney announced the Bank was keeping its key overnight lending rate at 1 per cent. That overnight lending rate affects the prime rate which banks charge their best customers. Prime rate at most banks is currently 3 per cent.

The days of deep-discount variable rate mortgages offering rates half a per cent or more below prime are gone for now, according to Robert McLister, editor of Mortgage Rate Trends.

“Is it gone forever? I don’t think so. But it’s gone for the foreseeable future,” said McLister. He predicted variable rates could rise by as much as .2 per cent over the next few months.

While the average posted rate for a 5-year fixed rate mortgage is 5.29 per cent, many banks are offering fixed rates as low as 3.25 per cent, says McLister. That compares very favourably to the average rate of 2.8 per cent for variable rate mortgages over the same 5-year term, McLister says.

“The spread is maybe half a point. That’s a historical anomaly,” said McLister.

One contrary note came from panel put together by ratesupermarket.ca, which suggested that fixed rates could drop over the next month, while variable rates will stay put.

“With no quick fix on the horizon for the European debt crisis, the global economic outlook continues to be pessimistic causing downward pressure on longer-term bond yields. Couple this with decreased demand for home loans during the busy holiday season, and it is likely that fixed mortgage rates will stay low or even drop further over the next 30-45 days,” the panel said.

By Josh Rubin found on Moneyville/Toronto Star

BROOKFIELD RESIDENTIAL PROPERTY SERVICES announces acquisition today of PRUDENTIAL REAL

2011-12-06T17:30:00.000-05:00

Hot off the Press:

Royal LePage's parent company

"Brookfield Residential Property Services (Brookfield)

has acquired

Prudential Real Estate and Relocation Services.

Acquisition creates global residential real estate and employee relocation services leader (Chicago, IL) December 6, 2011 –

Today Brookfield Residential Property Services (“Brookfield”), a Brookfield Asset Management Inc. affiliate, announced that it has purchased Prudential Real Estate and Relocation Services (“PRERS”), a recognized leader in employee relocation and real estate franchising from Prudential Financial, Inc. Prudential Relocation Services operates as Pricoa Relocation in Asia and Europe.

The addition of PRERS to Brookfield’s existing residential real estate franchising and employee relocation
services businesses establishes Brookfield as the world’s second largest employee relocation services
provider and the third largest residential real estate franchising business.

Under a licensing agreement, Prudential Real Estate brokerage affiliates will be able to continue to use
the Prudential brand based on the terms of their franchise agreements.

“This transaction creates a global employee relocation services and real estate franchising leader,”
explained Graham Badun, CEO, Brookfield Residential Property Services. “We have now increased the
breadth and depth of our service offering, keeping pace with the evolving needs of our clients around
the world.”

A North American & Global Leader

Through its various brands, Brookfield’s residential real estate franchisees are now present in all 50 U.S. states, 10 Canadian provinces, Mexico and Portugal, with a network of approximately 80,000 real estate agents, 2,800 real estate brokerage locations and more than $150 billion in annual residential real estate transactions.

U.S.‐based Brookfield Global Relocation Services moves nearly 85,000 families in and out of over 125 countries around the world each year. With the acquisition, more than one‐third of Fortune 100
companies are its clients. In addition, Brookfield is now the largest provider of relocation services to
government, with long term relationships with the U.S. and Canadian governments.

The acquisition greatly strengthens Brookfield’s existing U.S. business and results in the expansion of its
operations in nine countries, with a rapidly growing presence in China, Brazil and India.

“Today, Prudential’s real estate and relocation services businesses join a global company with a track
record of over 100 years of success,” said Earl Lee, President of Prudential Real Estate and Relocation
Services. “We’re excited to become part of a company that is focused on and deeply immersed in the
real estate sector and is in the business for the long‐term.”

Earl Lee will continue to lead the U.S. real estate business, and Rick Schwartz, President, Brookfield
Global Relocation Services, will assume responsibility for the combined global relocation services
business.

Brookfield’s parent company, Brookfield Asset Management, is a global asset manager with
approximately $150 billion in assets under management. Brookfield is co‐listed on the New York and
Toronto Stock Exchanges under the symbol BAM and on NYSE Euronext under the symbol BAMA.

About Brookfield Residential Property Services

Brookfield Residential Property Services is a leading global provider of real estate and relocation
services, analytics and knowledge. The company’s portfolio consists of leading brands, including
Brookfield Global Relocation Services, the second largest provider of global relocation services,
Prudential Real Estate and Relocation Services, Brookfield Real Estate Services, Royal LePage, Real Living,
Via Capitale and Centract.

Through its real estate brands, it has nearly 80,000 real estate professionals in more than 2,800 locations, who transact over $150 billion annually. Its global footprint spans North America, the United Kingdom, France, China, Singapore, India, Brazil and Australia, and includes more than 2,500 employees worldwide. It is a division of Brookfield Asset Management, a global asset manager with approximately $150 billion of assets under management.

Interest Rate Announcement: Bank of Canada Holds Rates Steady

2011-12-06T14:21:00.000-05:00

Have you been debating what to do regarding your Mortgage, or even whether to Buy or Sell Real Estate at this time - Overnight Rate is holding at 1%

With all the uncertainty surrounding many of the world’s economies at the moment, there was a semi-sure bet- that they Bank of Canada would stay put, given the strength of the headwinds blowing against our borders.

Yet again, Mark Carney is holding the overnight rate at 1 %. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The Bank of Canada said in a release, “Uncertainty around the global economic outlook has increased in the weeks since the Bank released its October Monetary Policy Report (MPR). Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened. Additional measures will be required to contain the European crisis. The recession in Europe is now expected to be more pronounced than the Bank had anticipated in October, as a result of increased deleveraging and tighter financial conditions, as well as necessary fiscal austerity and structural reforms.”

It isn’t just the Eurozone that is experiencing turbulence. Employment data released last week from Stats Can with an unexpected job loss suggests that economic conditions may not be as favourable as one might have thought a few months ago. Seemingly, employers are beginning to lose confidence are showing an unwillingness to hire.

The figures were not completely unexpected though, as the BOC had cautiously predicted sluggish growth, at best through the end of this year, and early next.

On the upside, inflation targets are coming closer to target levels, but not enough to counterbalance the threats that exist on the other side of the coin. They do expect inflation to continue to moderate, as food and gas prices begin to float down.

Many economists suggest that this latest rate hold is a sign of things to come, with the BOC required to keep borrowing costs low until the Eurozone crisis is more handily contained- which at this point, is not in the immediate future. The BOC is still adopting their “wait and see” policy on fiscal policy, and have not ruled out further stimulus if the economy requires it.

December 6, 2011, National News

Mississauga to Draft Waterfront Development Plan

2011-12-06T09:37:00.002-05:00

Mississauga is forging ahead with an ambitious plan to redevelop parts of its Lake Ontario shoreline by backing the creation of a single agency to oversee it.

City council voted unanimously to have staffers design the structure of a public waterfront development corporation and draw up its budget. Their report is expected early in 2012.

While Waterfront Toronto has spent much of the past year grappling with attempts by Mayor Rob Ford’s administration to tear up the agency’s plans for Toronto’s Port Lands – including a recently announced review that could lead to an overhaul of the project – the city to the west has been rapidly laying the ground work for its own waterfront plans.

The largest component is a new mixed-use neighbourhood, complete with canals, art galleries and a streetcar line, on the former site of the Lakeview Generating Station. City staffers are preparing a detailed plan that should be finished in about 18 months. City councillor Jim Tovey is optimistic construction will start soon after.

“Within six months of us finishing the master planning studies, we will have development applications coming in,” he said.

A citizen task force has also identified several other pieces of waterfront real estate with redevelopment potential. These include a hangar-like building in Port Credit that could be turned into a covered market, and lands that once housed an Imperial Oil refinery.

In the meantime, the city is working on smaller projects along the water’s edge. One involves fixing up a long-abandoned coal pier that juts a kilometre into Lake Ontario from the former power plant site and linking it to waterfront trails. Another entails recreating a wetland near the eastern edge of Lakeview.

Having a single organization oversee it all would ensure the plans are adhered to regardless of changes in government.

Along with interference from city hall, Toronto’s waterfront redevelopment has been hampered by several competing agencies with stakes in the project, said planning consultant Ken Greenberg.

“You need mechanisms to ensure the implementation is joined at the hip to the vision,” he said. “You have to have somebody with sufficient control and sufficient resources.”

Waterfront Toronto is also obliged to seek funding from the municipal, provincial and federal governments on each project and co-ordinate between different landowners. Waterfront advocates in Mississauga say the city should give its development corporation control of the land, so it can borrow against its value.

“The thing we’ve identified is to put the land in now so that the corporation can raise the money itself,” said task force member Brian Crombie. “The benefit of having the land in the corporation from the beginning is key.”

This is how Halifax’s Waterfront Development Corporation works. The agency owns the land and leases it to private developers. It also receives some funding from the province for individual projects, and can form partnerships with other organizations for one-off developments.

The model has been successful: the city’s downtown opens onto a long boardwalk and a series of historic boat piers, with a mix of condominium complexes, businesses and museums. CEO Colin MacLean says the key was building public infrastructure first to lure private investment.

“It’s become the most-visited tourist destination in Nova Scotia. It wasn’t intended as one, but we created great public space and it drew tourists,” he said. “By getting people here, we’ve found businesses want to be here.”

The structure of Mississauga’s agency has not yet been decided. For instance, the province owns the site of the former generating station, and will have to reach an agreement with the city on whether it donates the land to the waterfront development corporation or becomes a partner in the agency.

The city and the province signed a memorandum of understanding – essentially, an agreement-in-principle to work together – last year, and Mississauga-South MPP Charles Sousa says Queen’s Park is on board.

“For the province, this could be a poster child for smart growth and sustainability,” he said. “The progress to date has been tremendous.”

And to keep moving forward, those with experience in the field say, Mississauga must keep its eye on the prize.

“You never get cheap, fast and high-quality at the same time,” Mr. MacLean said. “You have to keep reinforcing to people that this isn’t an overnight piece.”

By Adrian Morrow found on Globe and Mail

New Home Warranty Plan Draws Reader Ire

2011-12-05T09:29:00.002-05:00

Barbara Captijn bought a house from a builder in 2007, assuming she could rely on the Ontario new home warranty to save her from major repair costs in the first few years.

Now she’s going to small claims court to sue the builder over problems with the hot water heating system installed in her multi-million dollar downtown Toronto home.

Things started going wrong within 10 months of the purchase. But Captijn listened to her builder’s advice not to go to Tarion Warranty Corp., which administers the program.

“The builder gave us the runaround for over two years, making us think we had routine plumbing problems and not a serious defect in the hot water installation design and use of equipment,” she says.

Only when she hired an independent expert did she find the hot water tank was carrying too much heat load for its capacity. But her two-year warranty on mechanical systems had expired.

Captijn kept fighting. She tried and failed to get coverage under Tarion’s seven-year warranty for major structural defects.

When she appealed to the provincial License Appeal Tribunal, she was offered $8,000 to settle the case just before the hearing.

“The offer was too low to cover our repair costs and was contingent on giving up our rights to proceed against the builder in small claims court,” she says.

“We should have just ignored Tarion and gone directly to small claims court. That’s the advice I’d give other consumers.”

Buyers pay for the new home warranty, with enrolment fees ranging from $600 to $1,900, depending on the sale price. Builders bundle it into the listing price or add it to the statement of adjustments paid during closing.

Howard Bogach, president of Tarion since 2008, says Captijn shouldn’t have waited until the fourth year to file her claim.

“Any coverage has limits,” he said. “We have pretty specific rules and this was not a major structural defect. I can’t say any more than that. I thought it was crystal clear.”

Captijn is not alone in blaming homebuilders for taking short cuts when installing heating, ventilation and air conditioning systems.

On Nov. 19, I wrote about Bev Craddock. She was awarded $40,000 by the License Appeal Tribunal when Tarion refused to fix her heating system.

Tarion decided not to appeal, but the builder plans to appeal. Now she has to hire a lawyer to argue that she wasn’t served with the papers properly.

“It’s a big lie that Tarion or the tribunal provides a simple means of resolving disputes. It’s just one big exercise in wearing you down,” Craddock says.

When I asked readers about inadequate home heating systems, I heard from a number of people. Many blamed Tarion for refusing to help.

“Tarion is much more interested in protecting the builder than the consumer,” said Carol and Dale Egan, whose custom-built home came with a high-efficiency furnace that burned through four motors in four years.

After the two-year Tarion warranty expired, they were told they could get another free motor but they had to pay for the service call and labour cost.

Another reader talked about having two furnaces replaced within two years and not getting access to test results shared with the builder. Both furnaces and the ducts were undersized.

“I’ve learned how ‘in bed’ Tarion is with the builders in this whole process,” said the reader, who wanted to remain anonymous.

Tarion has replaced heating systems several times for homeowners in some new developments. The engineers who installed the systems have been called to disciplinary hearings by their professional associations.

Even Mike Holmes, the outspoken contractor, has done a segment on his HGTV show featuring an owner with a heating system that didn’t do the job. Called Re-Inventing, it will run again on Dec. 26.

“We don’t think there’s a systemic problem,” Bogach insists. “We have very few complaints about heating systems.”

If you have comments about new home defects and the Tarion warranty, please let me know. Let’s keep the discussion going.

By Ellen Roseman found on Moneyville.ca/Toronto Star

Susan Lancaster Team "Christmas Celebration" Dinner

2011-12-03T17:01:00.000-05:00

So much to celebrate again this year. Health, Happiness and Success -

We are grateful and blessed to have worked with such wonderful clients throughout the year and to have the support of our clients, friends and family.

Thanks from the bottom of our hearts.

Susan, Anita, Dennis, Jill and Nicole
The Susan Lancaster Team
Royal LePage Real Estate Services Ltd., Brokerage
www.LancasterTeamSellsHomes.com

Oh by the way, we are never too busy for your referrals and would love to work

with people just as great as you are.

How to Make It the Selling Season

2011-12-02T10:29:00.002-05:00

The holidays are right around the corner, and homeowners are asking themselves: should we bother selling now or take the house off the market until after the new year? It’s a good question. The winter season is not typically the ideal time to sell, but it does have some unique advantages.

Five Tips For Home Selling in Winter

While the real estate market doesn’t attract huge numbers this time of year, the home buyers shopping around for a house are usually pretty serious, which means a better chance of selling. There’s also a little less competition on the market as some sellers do remove their listing during the holidays. It’s possible to sell your home during the holidays and here are a few tips to make your house appealing to buyers:

1. Illuminate Inside and Out: The short days of light in winter make it hard to rely on natural light to really showcase your home. Turn on all of the lights before an open house. Be sure that bulbs are working and that you’re using the highest wattage that you can safely use in all fixtures. A bright house is inviting, helps buyers to appreciate the entirety of the home, and shows that you have nothing to hide. Light up the outside as well. Illuminate entranceways and paths.

2. Clean. Target the areas of the home that have a tendency to not look their best this time of year. Windows can look dingy, give the glass a good cleaning. The exterior can be hard to maintain this time of year, but keep the grass mowed, keep up with falling leaves, clear paths and walkways, remove fallen branches. Once the snow flies shovel, plow, and salt.

3. Warm and cozy. Selling a home in winter requires staging. Keep the thermostat on a comfortable setting. “Drafty” or “chilly” are not words you want used to describe your home by would-be buyers. Appeal to the senses by filling the air with the delicious aroma of home-baked cookies which you can leave out on a nice platter. Place a clean mat by the door for home buyers to take their wet or snow-covered shoes on. Not only will it keep your floors clean, it shows pride of ownership on your part.

4. Decorate tastefully. Holiday wreaths and lights are completely appropriate, but keep décor neutral. Real or artificial mums or poinsettias give beautiful color to entranceways, mantles and tables. Christmas trees can be lovely additions to living rooms, just be sure that they are sized appropriately for the space. Set dining tables with china and rich table linens to show the potential for the home in terms of entertaining.

5. Price right. Regardless of when you’re selling a home, pricing the house correctly gives you the best advantage. Keep up with listing and selling prices in your area, and take note of which homes are selling. Work with a Realtor who understands the market and can help you position your home for a sale. If you’re selling a home in Norwell, Hingham or surrounding South Shore communities I am happy to work with you to make your home stand out and attract buyers in this real estate market.

By George Jamieson found on Capital Residential

The best part about Selling during the holidays is that you’ll have less competition and Serious Buyer’s.

While other Sellers who took their homes off the market are over-shopping and eating chocolate, you’ll be keeping the most attractive home on the block and enjoying a prominent spot among local real estate listings.

What have you done in the past to prepare your home to Sell at this time of the year?

Should I Paint my Home before Selling?

2011-12-01T15:04:00.000-05:00

When Sellers are debating this my suggestion to them is:

Paint in the can is worth $30.00 but on the wall it is worth $1,000.00.

The whole concept of the above is not actual dollar values but rather that a fresh coat of Paint in Designer Neutral Tones will help give Buyers that "Wow" feeling.

"A seller should always make sure that their walls/paint has a fresh appeal, no dings, no marks. If there are any, it should be repainted or touched up because it gives the feeling of a well-maintained home.

Making sure your home is well-painted before selling is worth the cost.

The people who viewed pictures that included rooms painted "Pink" estimated the home was worth an average of $3,500 less than the price opinion of those who saw the pictures without the pink room, far more than the cost of painting the room before putting the house up for sale.”

“What’s more, superficial things like a room painted an ugly color can make people less likely to buy a house—even though fixing such a problem is as cheap as a couple cans of paint

Depending on the paint job and your local real estate market, you can expect a 50% to 500% return on your investment.

It will greatly impress potential buyers if your house has a professional finish with sharp cut lines along ceilings and trim.

A neutral color – beige, cream, ivory or standard off-white will allow your buyers to picture your house with their color schemes. The lighter color also adds brightness to the rooms and makes them appear more spacious.

Susan.

Christmas Tree Farms, Tree Lots, Hayrides, Sleigh Rides and Other Winter Fun

2011-12-01T11:19:00.000-05:00

Holiday Season Traditions

One of my favorite traditions at this time of the year was a family outing to a Tree Farm.

The family would all dress up snuggly to brave the cold and find a tree that "Talked to Us" - what fun we would have searching, laughing and just enjoying the time together - at the same time we took the time to enjoy all the Farm had to offer at this very special time of year:

- Horse Drawn Wagon Ride,
- Fun in the snow, when there was snow
- A visit to the Christmas Store,
- And of course a nice hot drink of Hot Chocolate or Apple Cider.

Should this sound like fun to you a good Tree Farm site for locations close to you would be:

http://pickyourownchristmastree.org/CNxmastosw.php

A couple of places I have been to are:

1. Drysdale's
     (by the way they also have Easter and Halloween Events)
     6635 Sincoe Road 56, RR #1 Egbert, Ontario
       (north of Nottawasaga Inn Resort/Conference Centre in Alliston)
     Telephone: (705 424 9719)
     Web Site:   info@drysdales.ca

2. Clembrook Christmas Farm
     4231 Derry Road RR2, Milton
     Telephone: (905 878 6576)
     Web Site:    http://www.pickyourown.org/XMT.php?URL=http%3A%2F%2Fwww.clembrookchristmasfarm.com/

Hope you find this site helpful and if you and your family decide to make this part of your holiday traditions ... enjoy and all the best! Susan.

9 Expert Tips for Your Best Christmas Tree Ever

2011-12-01T10:39:00.000-05:00

9 Expert Tips for Your Best Christmas Tree Ever

BHG.com Garden Editor Justin Hancock offers these tips for choosing the best real Christmas tree for your family -- and keeping it looking good as long as possible.

1. Know what you want.

Each Christmas tree species is a little different, so choose the one with the best characteristics for your household. For example, if you have children, you might lean toward pines or firs with soft needles instead of spruce trees, which have sharp needles that can hurt when you step on them.

2. Check how fresh your tree is by bending a needle in half with your fingers. The freshest firs snap between your fingers; fresh pines bend and should not break.

3. Ensure the needles aren't already falling off by gently grabbing the inside of a branch and pulling your hand toward you. The needles should stay on the tree. Alternatively, gently tap the cut end of a tree on the ground; if a few needles fall off, it should be fine. If lots of needles fall off, look for a different tree.

4. Look for a tree with even coloration. Some types of Christmas trees will go from deep, rich green to a dull gray-green if they get too dried out.

5. If you purchase a pre-cut tree, cut off about a half inch from the bottom of the tree's trunk. The fresh cut will absorb more water, so your tree holds its needles and keeps its color longest. Put the tree in water as quickly as you can after making the cut.

6. If you cut your own tree, make sure you know how tall your ceiling is -- and how high your Christmas tree stand is -- so you don't have to measure and re-cut the tree when you get home.

7. Keep your tree cool. Heat sources -- such as a fireplace or heating vent -- will cause your tree to dry out faster.

8. Don't let your tree dry out. Keep the water in your tree stand filled all the time. You may need to add water two or even three times the first few days.

9. Fill your tree stand with tap water. Additives such as bleach don't usually help and can cause your tree to decline more quickly.

Hope these tips help, hope you have fun choosing your tree for the holiday season, Susan.

Home Values have Doubled since 2000, Report says

2011-12-01T10:06:00.000-05:00

A new report suggests that the average home value has doubled in most of Canada's big cities since the millennium.
A Real Estate organization says it examined the value of homes in 16 major markets across Canada, calculating the changes that occurred from 2000 to 2010.

They found that an average home in these markets was worth $339,030 as of last year, more than double the average price of $163,951 in 2000.

Experts say that Canadians have spent an estimated $450 billion on renovations over the decade, while more than $340 billion in residential building permits were issued.

This heavy-duty investment has helped build value in individual properties while an increasing number of people looking for housing has helped spur demand.

"They key to Canada's housing evolution has been an increase in population," says Michael Polzler, a Real Estate expert.

With further sharp population growth expected in the years ahead, Polzler says that portends "continued investment and continued growth in Canadian housing values."

The hundreds of billions poured into rejuvenating homes and properties across the country have also created new trends in urban neighbourhoods, the report states.

In cities where space is scarce, residents are increasingly seeing small properties snapped up and turned into new structures, whether personal residences, townhomes or high-rise apartment buildings.

Condominiums have also become more popular and more varied in terms of what they can offer. The Real Estate organization says buyers can now choose from mixed-use residential, live-work studios, lofts, townhomes and condo bungalows in major markets.

The 16 markets that were studied were: Greater Vancouver; Victoria; Kelowna, B.C.; Edmonton; Calgary; Regina; Saskatoon; Winnipeg; Ottawa; Greater Toronto; Hamilton-Burlington; Kitchener-Waterloo in Ontario; London, Ont.; Saint John, N.B.; Halifax-Dartmouth and St. John's.

No markets from Quebec or the Territories were included in this analysis.

By Geoff Nixon found on CTVNews.ca

Royal LePage Christmas Parade

2011-11-30T12:34:00.002-05:00

More deep and prolific thoughts for us to consider in our day to day hectic lives, Susan

2011-11-30T11:58:00.002-05:00

Build Toronto Announces 75-storey Condominium

2011-11-30T10:12:00.000-05:00

City-owned development agency Build Toronto announced on Tuesday the building of a 75-storey, $295-million downtown residential building.

The agency will be working on the project, which will be at 10 York St. in the Harbourfront neighbourhood, in collaboration with developer Tridel.

It will be the first partnership since the city established Build Toronto as an independent and self-funding real estate and development corporation.

George Carras of Realnet Canada said that the GTA is building "up not out" and the region has broken a real estate record this year with $10 billion in condo sales in 2011.

"People have to live somewhere and every year the GTA absorbs something in the order of 100,000 people," Carras told CTV Toronto. "That's population growth."

Carras said that the real estate market has also been intensifying in York Region which experienced high-rise sales of more than double this October.

The new condo building will be built on a vacant site that was formerly leased to the Toronto Parking Authority for a pay parking lot and to the Toronto Police Services for an impound lot.

Tridel president Leo DelZotto said the site "offers the opportunity to create a condominium development that will be spectacular."

Coun. Doug Ford said that the city sold a piece of the site to Tridel but will maintain a portion of the land.

The development will "change the city's skyline and link the downtown to its waterfront (and) will also enable Build Toronto to deliver a significant financial return, generate new jobs and property tax revenue and inject funds into the local community for further investment," the agency said in a news release on Tuesday.

The development will include three bedroom floor plans, or the possibility of converting suites from two to three bedrooms, as a way to encourage families to live in the downtown core, the agency said.

The new condo will generate $40 million for the city, according to Ford.

With a report from CTV Toronto's Dana Levenson and files from The Canadian Press

Found on ctvtoronto.ca

This Basement Flood Led to a Lawsuit

2011-11-29T09:29:00.000-05:00

Don and Louise Beauchamp owned a home in London, Ont., and during the six years they lived there they renovated their basement, first using it as a playroom and later as a guest room.

They sold the home in November, 2007 and a week before closing in early 2008 the basement flooded. They paid $1,649 to dry out the rug and replace the underpad, but did not tell the buyers. The Beauchamps thought this was a “one off” occurrence and since they had fixed the problem there was nothing to disclose.

A few weeks after closing, the basement flooded again and it ended up costing Adam and Yogi Soboczynski, the buyers, more than $20,000. They were convinced the basement had flooded before and sued, arguing that fact should have been disclosed to them.

The facts of the case are interesting. When the buyers made their offer, they asked the Beauchamps to complete a Seller Property Information Statement (SPIS) which they did. The Beauchamps said they had never had water problems in the basement. But for some reason, the form was not attached to the accepted offer.

The offer was also subject to a satisfactory home inspection, which was completed with no problems noted.

An engineer hired by the Soboczynskis testified in court that flooding had probably occurred during the previous seven years, based on his review of the property. The Beauchamps brought in relatives who had stayed in the basement. All claimed there was never any indication of water problems. In addition, the Beauchamps had kept their computer in the basement for years.

The offer also included a standard clause called the “Entire Agreement Clause” which says that people who sign contracts can only rely on things that are included in the agreement. If it is not included, then it means that it did not matter to them.

In a decision released November 17, the judge preferred the evidence of the relatives over the expert. He agreed the flooding was a one off incident and did not have to be disclosed to the buyers.

The judge looked at other cases where sellers had been held responsible when completing the SPIS. In all those cases, he noted that one of the main reasons for liability was that the SPIS form had been attached to the agreement. As a result, if the sellers were dishonest or careless in completing the SPIS and the buyers relied on it, they could be held responsible.

In this case, the SPIS was not attached to the agreement, so the judge decided the buyers could not rely on it. Since the buyers could not prove that the sellers deliberately deceived them, the sellers won the case.

The lessons from this case are:

• For sellers, disclose all problems you know about. If you are not sure, err on the side of disclosure.

• If you as a seller sign an SPIS, to be safe, do not permit it to be attached to the agreement. That way, you will be protected if you made a mistake in completing it.

• Buyers should not rely on the SPIS because it is not supposed to be a warranty; it is just to be used for information purposes.

• If something matters, always include it in your home purchase agreement. Do not rely on verbal promises or advertisements.

By Mark Weisleder on MoneyVille/Toronto Star

Aaron: Revised Purchase Agreement Could Ease ‘Sticker Shock’

2011-11-28T13:18:00.000-05:00

In a landmark consumer protection initiative, the Tarion Warranty Corp. has proposed a requirement that builder purchase agreements set out in one place all the extras that can be added to the price of a new home. (Tarion regulates the home-building industry in Ontario and administers the warranty program for new homes.)

If enacted, this initiative would mark a significant departure from the current practice whereby extras (euphemistically called “adjustments” by developers’ lawyers) are scattered through purchase agreements. It often requires the skills of a legal Sherlock Holmes to ferret them all out and calculate the total cost implications.

The proposed changes arose out of concerns expressed to Tarion about inadequate disclosure of the myriad of different items that are often charged on closing, resulting in “sticker shock” to buyers — and worse, an inability to raise the necessary funds.

When the regulations become law, a new Schedule B will be attached to the Tarion addendum in each builder purchase agreement. The schedule will be divided into two parts.

The first part will contain a list of fixed additional payments, fees and adjustments to the purchase price which the purchaser will be required to pay on closing.

The second part will list all variable adjustments to the purchase price. Builders will not be able to collect any extra charge if it is not shown on Schedule B.

In the category of fixed additional payments, the following types of charges will be listed for purchasers, no matter where else they are shown in the agreement:

• The Tarion Warranty Corp. enrolment fee (based on the price of the unit).

• A $300 fee plus HST for record-keeping to hold the purchaser’s deposits in trust.

A $50 fee for cashing and recording each deposit cheque.

A $150 fee plus HST to discharge the builder’s construction financing and give clear title after closing.

The builder’s lawyer’s $73.45 real estate transaction levy, payable to the Law Society.

A fixed fee for any NSF cheque.

A fixed fee to make changes to a purchase agreement, such as adding another purchaser.

• Fixed legal and administrative fees if the builder allows the purchaser to “flip” the purchase agreement.

Under variable adjustments, purchasers will be alerted in one place to all the extra charges which cannot be determined at the time the agreement is signed. The variable charges may include:

The condo unit’s share of the cost of installation of gas, hydro, sewers and water services and meters, to an unlimited amount.

Any new taxes imposed on the home or condo unit after the agreement was signed, also an unlimited amount.

An unlimited levy for parks, public art or other municipal charges.

HST on the cost of any included appliances.

Interest on the balance of the purchase price from the day of final closing to the next banking day.

Any increase in municipal, education or transit development charges imposed after the agreement is signed.

An unlimited contribution to the builder’s share of all costs associated with a municipal development agreement.

Any new taxes imposed on the unit by any level of government after the agreement was signed

An unlimited levy for parks, community services, boulevard tree planting, public art levy or other municipal charges

Interest on the balance of the purchase price from the day of final closing to the next banking day

Estimated municipal taxes for the year of closing and the subsequent year.

With the entire list of variable charges in one place, purchasers will be alerted to them in a way that current builder agreements do not make clear. Purchasers will then be free to either accept the risk of unlimited extra charges or attempt to negotiate a maximum amount with the builder.

As a past board member and current chair of Tarion’s consumer advisory council, I am an enthusiastic supporter of the proposed changes. As I see it, they will make builder offers more transparent and easier to understand. As well, they will go a long way towards reducing “sticker shock” for new home buyers.

By Bob Aaron found on TheStar.com

Tablet, netbook, laptop — which is for you?

2011-11-24T12:44:00.001-05:00

Have you ever wondered what you should buy for your needs … after just buying an Apple iPad I thought this article was great – hope you enjoy it as well, Susan.

Tablet, netbook, laptop — which is for you?

"If you're looking for a portable computer, then you're probably considering a laptop, netbook, or tablet," says Marc Saltzman, technology journalist, author, and TV and radio personality. "But things are changing in this market and these three options are beginning to look similar on the surface. However, they do have strengths and weaknesses, and fit different needs quite clearly."

Thankfully, this tech expert's advice will help make sense of the crowded portable computer market.

Laptops: Power and portability

"Most consumers are familiar with laptops because they've been around for so long," says Mr. Saltzman. "And some laptops can completely replace a desktop system."

Basic features:

• Almost as much power as a desktop

• Ample screen size — about 13 to 18 inches

• Full-size keyboard

• DVD/CD drive

Why a laptop makes sense:

• Power. "Some laptops have as much power as a desktop," says Mr. Saltzman. "You can easily run full versions of the software you want at the same speed as you would on a desktop."

• Removable battery. Battery life depends on the model and the programs you run. Laptops also allow you to replace a dead battery with a fully charged one quickly and easily.

• Easy file transfers. "Using a USB flash drive, Secure Digital (SD) memory card, or the built-in DVD/CD drive, it's easy to transfer files to and from your laptop."

• Storage. Laptops come with plenty of storage space (320 GB, for example) to hold all your files.

When a laptop doesn't make sense:

• Laptops aren't as ideal as desktops for young children. "A desktop might be a better family computer because it's less expensive than a laptop, and less likely to be dropped accidentally because it's not carried around," says Mr. Saltzman. "A desktop also allows parents to monitor their children's computer and Internet use more easily because you can ensure it stays in an open area."

Netbooks: Grab-and-go at good prices

Netbooks made a big splash when they entered the market in 2007 and for good reason.

Basic features:

• Smaller screens — about 7 to 12 inches

• Smaller keyboard (typically)

• Less power than a laptop

• USB port(s) but no DVD drive

Why a netbook makes sense:

• Portability. "Netbooks are made to be taken with you," Mr. Saltzman says. "They're smaller and lighter than most laptops."

• Good battery life. Because they're less powerful, they run longer on a battery, and the battery can be swapped.

• Solid taskmaster. "Netbooks are great for basic tasks like word processing, email, and surfing the Net," says Mr. Saltzman.

• Price. Some netbooks can be bought for 1/2 to 1/3 the price of a laptop — and basic models can be found for as little as about $200 on sale. That's a good price if you need something to take to class or your local coffee shop.

When a netbook doesn't make sense:

• "If you're looking for something that will be used for entertainment and gaming, then a netbook isn't your best option because the graphics and speakers aren't great," he says. "And they're not ideal for more robust tasks, such as editing photos or home movies."

Tablets: Hot category for consuming media

"Tablets make the latest and hottest category in computing," Mr. Saltzman says. "Today, we're seeing more companies add a tablet to their lineup."

Basic features:

• Touch screens in a wide range of screen sizes — from about 7 to 12 inches

• Touch keyboard — physical keyboards can be purchased for some models

• Slim, compact design — made for portability

• Excellent battery life (up to 10 hours) — but built-in, so it can't be swapped

• Instant-on access — virtually no boot-up time

Why a tablet makes sense:

• Portability. They're lighter and slimmer than a netbook.

• Entertainment. "Tablets are great for video chatting, surfing the Internet, listening to music, and downloading and watching movies on the go," says Mr. Saltzman.

• Apps. "Apps (applications) are less expensive than software and add more functionality to your tablet," he continues. "You can download games and educational tools for both adults and children."

• Reading. Different apps make buying, storing, and reading e-books, and digital magazines and newspapers, easy.

When a tablet doesn't make sense:

• Tablets aren't great if you create content. "It can be difficult to write and enter large amounts of data using a touch keyboard. Also, a tablet will only have about 1/10 the storage capacity of a laptop, so you can't store a lot of files on it," advises Mr. Saltzman. "And without a USB port (on most models) or a DVD drive, it can be difficult to transfer files quickly and easily."

Source Unknown

Women Are Now Taking the Lead in Real Estate and Finance

2011-11-24T09:32:00.000-05:00

What do the U.S. Secretary of State, the Chairman of PepsiCo and the CEO of KeyCorp all have in common? They're women. From the boardroom to the bank account, women are responsible for more and more key financial decisions, including those involving real estate.

When it comes to buying property, women are increasingly the decision makers and the statistics bear out the facts. For example, according to the National Association of REALTORS(R), 20% of single women are making real estate investments as compared to only 12% of single men.

Guys take note: women are no longer waiting for their ideal man before buying a home; they're taking matters into their own hands and moving in.

At the same time, more than 50% of REALTORS(R) are also women and the trend continues to grow as women keep building on their role in the real estate industry.

So what explains this sudden surge of girl power in what have traditionally been two very male dominated fields? According to Lee Redwood and Andrew Brest of Sundaybell Inc., an innovative online real estate service matching consumers with their ideal agent, it's a matter of knowing what's important. "It's our opinion that women have a better understanding of the emotional connection buyers and sellers have towards their properties and it's less about the square footage or raw features that a home has to offer." This is also reflected in the listing prices for female REALTORS(R), which tend to be higher than those of their male counterparts, for similar properties.

And it's much the same when it comes to exploring financial options as well.

Nielsen data reports that over 85% of women are going online to do research prior to making a buying decision - whether it be a new home, a new car, or even a new pair of shoes. Of these, over 50% trended towards increasing their role in a household's long-term savings plan with the intent of putting away more money for the future. Regardless of age, "women are key wealth influencers and eager for compelling and relevant financial information, with a modern voice" note Susan Misner and Laura McDonald of Golden Girl Finance Inc., an online financial resource created for women by women, to support them into taking control of their financial lives and futures. "It's about getting them engaged in financial content, addressing their unique needs and life stages, and ultimately, helping create true value and wealth creation in women's lives; as the research proves, the optimal way to do this is online."

Indeed, when it comes to both real estate and finance, a simple recommendation from a friend or relative about what to do simply isn't good enough anymore. What's needed is an all-encompassing decision-making process based on research, hard-facts and the emotional connection between what is being shared online. The Internet is providing buyers, sellers and investors with more information and feedback, an individualized look at the big picture and others' opinions, which can be assessed and evaluated prior to making any decisions.

Sundaybell and Golden Girl Finance are two companies that recognize the growing need for good information to help with big decisions. "By staying on top of real estate and financial trends, our companies represent value to a new wave of customers. By providing interesting articles, up-to-date industry trends, and communication portals that are friendly and informative, we're sure to continue offering our users platforms that can assist them with their short, long-term financial and real estate goals," stated both parties.

Lee Redwood, VP Sales and Andrew Brest, VP Marketing, of Sundaybell Inc., would be more than happy to provide further insights into the growing trend of women in real estate upon request.

Press Release posted on MarketWatch.com

Canadians Eye Cheap Florida Real Estate

2011-11-23T09:24:00.000-05:00

Joe Waddell got the best cross-border bargain of his life last year — a three-bedroom, 1,700-square-foot condo for just under $120,000 (U.S.).

The Fort Myers property is just 15 minutes from southwest Florida’s gulf beaches, within an easy drive of Miami nightlife and, better yet, about two hours from Disney World.

But Waddell, 45, his wife and 11-year-old daughter won’t actually be using their sun-and-sand getaway for a few more years.

Instead, they are among the growing ranks of Canadian “endvestors” — investors who’ve been snapping up deeply discounted bargains south of the border with the intention of renting them out until they retire.

“These are people who get it,” says Wayne Levy of Florida Home Finders of Canada, which has helped thousands of would-be snowbirds like Waddell.

“They understand that if they don’t get a foot in the water now, there’s a good chance they won’t be able to afford a second home when they actually want it.

“These aren’t people looking at quick flips. They’re prepared to buy and hold.”

In fact, there are still so many deals to be had, Waddell has wondered about buying up more given that the decline in Florida home and condo prices appears to have leveled off. In many cases, properties are selling for less than it would cost to build them today.

The new condo he bought in the gated Palmetto Cove development has granite counter tops (even in the laundry room), two bathrooms, a gym and an outdoor pool. Similar units sold for $260,000 before the sub-prime mortgage chaos and the collapse of the U.S. housing market.

But just as importantly, Canadians are finding an exceptionally strong market for rental properties, fuelled by thousands of Floridians who lost their homes and can’t qualify for mortgages.

That combined with a strong dollar and low interest rates convinced Waddell that buying in Florida was not only a sound investment but a sure retirement plan — even if means having to file taxes with the dreaded Internal Revenue Service.

“We know we can’t use it for a month or two now,” says Waddell, a window and door salesman who lives in Oakville, “but it’s not costing us a thing right now. In fact, we’re making money.”

The family renting the condo is paying $1,050 a month and, even when maintenance fees are factored in, Waddell says he’s getting a 6 per cent return on investment, “much better than the stock market has been doing.”

Florida Home Finders holds regular seminars for Canadians wanting to buy in Florida — the last one for this year is Wednesday night at Edwards Gardens — and Levy estimates that 75 per cent of Canadians buying now plan to rent their properties out.

Toronto tax lawyer David Altro, who is also licensed in Florida and author of the book Owning U.S. Property the Canadian Way, warns that this isn’t a get-rich-quick scheme and can be quite costly if buyers don’t understand the tax implications on both sides of the border first.

He also recommends a cross-border trust for any properties over $100,000, which can add thousands to the upfront purchase price but save far more on estate and other taxes down the road.

Florida realtor Michelle Ross says many hard-hit Floridians now calling her to list their homes are urging her to market them specifically to Canadians.

The demand by endvestors remains so strong that, like many Florida realtors, she’s expanded her business to also offer tax experts and property management services so that distant owners don’t have to bother vetting tenants, collecting rent and dealing with maintenance issues from afar.

“It’s heartbreaking, it’s unfortunate, but this is a win-win situation for everybody,” says Ross who will be holding seminars on Florida Real Estate Nov. 30 at the Fairmont Royal York. “It’s great for the Florida economy that Canadians are able to pick up good deals, and that they are offering Floridians who can’t afford a home a place they can rent.”

By Susan Pigg found on Moneyville/Toronto Star

They Walked from House Deal and Were Sued

2011-11-21T09:46:00.003-05:00

The paperwork that comes with many real estate deals says the terms of the sale are “conditional on lawyer approval.”

This clause confuses buyers, sellers and real estate agents and rightly so. What is the lawyer supposed to be approving? The price? Some particular part of the contract? Does the phrase give someone the right to walk away if the lawyer does not find anything really wrong with it?

The law says that every condition must be exercised in good faith. You can’t just say “I changed my mind” and walk away from a deal. But in practice, it is not so easy to understand, as we see in the following two cases.

On April 2, 2006 Flora and Mario Rizzutto received an offer for their Edmonton home from Hassan and Mona Rahall. It had a condition that it was “subject to seller’s lawyer’s approval.” The Rizzuttos had until April 10 to review this offer with their lawyer.

On April 7, the Rizzuttos told the buyers that they would accept their offer, but on April 10, the Rizzuto’s lawyer told the Rahalls the deal was off. Apparently the sellers were building a new house and they were worried it might not be finished at the time the sale on their old home was scheduled to close. This concern was never raised with the Rahalls.

The main issue was whether the Rizzuttos even asked their lawyer to approve the contract. The Rizzuttos claimed that they did and that they did not need to reveal what they discussed with their lawyer because these conversations were protected by lawyer-client privilege.

The Rahalls sued and a judge concluded the Rizzuttos did not act in good faith and demonstrated no reason why their lawyer might not approve of their contract. It was clearly not enough that the sellers suddenly changed their mind because of a concern that their new house might not be finished in time.

Here’s what the judge said: The term “subject to lawyer’s approval” is not an all-encompassing condition. The Rizzuttos did not act in good faith by cancelling the deal and could not use the late closure of their new house as an excuse if it was not shared with the Rahalls.

A Manitoba case that went to court in 2010 had a different outcome. In this situation, Sheila and Robert Morrow agreed to sell some land and the agreement was “subject to seller lawyer approval.” They changed their minds and told their lawyer to say he did not approve the deal. It appeared the lawyer in fact found no problem with the agreement, but the Morrows viewed the condition as allowing them an escape hatch.

In this case the judge decided that the sellers could rely on the condition to get out of the deal. He noted that the facts demonstrated that the sellers had only one hour to make up their minds whether to accept a $3 million deal, received no professional representation prior to signing the agreement, were not trying to cancel the deal just to accept a higher offer and did take the time to meet with their lawyer. As such, he concluded that they could rely on the condition to get out of the deal.

The moral of the story is that buyers and sellers need to understand that all conditions must be exercised in good faith and that judges will look at the particular circumstances of every case before making any decision.

Facts matter.

For example, if your deal is conditional on financing, you have to at least apply for financing and get turned down or receive unacceptable terms before you can cancel your deal. If your deal is conditional on a home inspection, you have to at least have the home inspected and then not be satisfied with the results. It is the same with a lawyer review condition. You need to go to the lawyer and receive advice about all aspects of the contract and then make up your mind.

If you want to a limit lawyer’s advice to certain clauses in the agreement, then you will need to say so. If the clause is left too wide, then more latitude will be given to the lawyer.

The irony is that to properly draft a subject to lawyer clause, you need a lawyer. But if you had a lawyer advising you, you wouldn’t need the clause in the first place. Go figure. Lawyers always make things too complicated.

By Mark Weisleder found on Moneyville/Toronto Star

Five Real Estate Trends for 2012

2011-11-14T09:44:00.003-05:00

What’s in store for investors in the Canadian real estate market?

PricewaterhouseCoopers and the Urban Land Institute surveyed more than 950 industry experts from Canada, the United States and Latin America for their Emerging Trends in Real Estate forecast report released Tuesday.

On the Canadian front, here are five trends to look for in 2012:

1. Steady but “not stellar” investment prospects:

“Typically restrained Canadian consumers had been on uncharacteristic spending and home-buying binge encouraged by low interest rates, but their self-assurance has ebbed, and job growth has decelerated in response to all the noise about European and U.S. debt woes.”

“Interviewees signal a better-to-be-cautious investment approach.”

2. Continued strength in commercial markets:

“Canada’s resilient property sectors appear ready to weather any potential problems without severe distress.”

“Occupancies of 90% and higher persist in a near steady state equilibrium across most commercial markets from coast to coast.”

3. Toronto and Vancouver are still the top markets to watch for investment and development:

“Toronto and Vancouver retain their top survey rankings, boosted by international gateway status and diversified economies.”

“Calgary and Edmonton rebound with recent energy market gains, while Ottawa benefits from its large and sustaining government jobs base.”

4. The multifamily residential sector remains a safe bet:

“Continuing immigrant flows [will] sustain demand in the major cities. Even if job growth declines and home-buying cools, apartments should be a ‘safe haven.’”

“Aging demographics also favour more apartment demand: empty nesters and seniors move out of suburban homes into smaller, easier-to-maintain units with urban conveniences.”

5. But… renters will continue to favour condos over apartments:

“Apartment developers can readily obtain construction financing, but thin margins dampen interest: renters look for higher-finish condo-quality buildings, conditioned by all the condo units for rent.”

“Until the market turns, developers do better building condos instead. Investors can never get their hands on enough apartments.’”

By Christine Dobby found on Financial Post

Mortgage Update: Canadians are Tackling Debt

2011-11-10T09:39:00.002-05:00

Canadians are coming to terms with debt.

Some 36 per cent of homeowners say they are now fast-tracking their mortgages through lump-sum payments, increased monthly payments or by paying weekly or biweekly rather than monthly, according to an annual survey.

In other words, homeowners have heeded the words of Finance Minister Jim Flaherty who has warned that Canadians are carrying too much debt, says Jim Murphy, president of the Canadian Association of Accredited Mortgage Professionals which released its seventh annual report on mortgage debt Wednesday.

Homeowners are also looking for ways to “insulate” themselves from any possible hikes in interest rates, says the annual State of the Residential Mortgage Market report, a survey of 1,031 Canadians with mortgages.

Some 78 per cent of those who renewed or refinanced their mortgage in the past year saw a reduction in their rate. Twenty-one per cent switched to a new lender and mortgage brokers continue to grow in popularity over banks, now accounting for 27 per cent of the market, said Murphy.

Ten years ago just 5 or 6 per cent of homeowners got mortgages through brokers, once seen as lenders of last resort. Now they are seen to offer some of the best rates and flexibility, especially for young, first-time buyers.

Most dramatic over the last year has been the decline in homeowners taking equity out of their homes. Just 10 per cent of those surveyed have done an equity takeout the past 12 months, a 40 per cent drop from 2010.

Fixed rate mortgages remain the most popular (60 per cent) compared to variable rate mortgages (31 per cent.)

By Susan Pigg on Moneyville/Toronto Star

Cheapest Listed Home Price Not Necessarily the Best Deal

2011-11-09T11:23:00.001-05:00

There are some houses you’ll find priced on the Toronto Real Estate MLS for over $500,000, and others for just $1. The reason for the disparity? The latter is a pricing strategy meant to generate a bidding war between homebuyers, which real estate author and consultant Mark Weisleder believes is not effective.

In the seller’s market of today, some houses are priced way below fair market value to attract lots of buyers generally interested in taking advantage of the current low interest rates.

Pricing a home at low cost is a bad strategy since people are able to distinguish a sale versus what Weisleder calls a ‘ridiculous price.’

“When it’s a seller’s market, when there are more buyers than available homes, you’ll see more bidding wars happen. Bidding wars are a reflection of debt,” says Weisleder, author of “Put the Pen Down!” who also writes a real estate column.

Pricing a home at low cost is a bad strategy since people are able to distinguish a sale versus what Weisleder calls a “ridiculous price.” It can be a waste of time for the seller, and can cause suspicion among buyers who would be more trusting of those who sell their homes at market value.

Although buyers may initially think that the price is a deal, this does not mean the seller will accept the offer at the starting price. Rather than testing the market, Weisleder advises sellers to be honest about pricing as that will attract the most serious buyers immediately.

“Say a house is $400,000 and you want to test market so you list it for $440,000, but there is a similar house [listed] for $395,000,” Wesleder says as an example. “Then you reduce the price. By that time, others think something is wrong with your home—bad strategy.”

In a seller’s market, there are more buyers than houses available, resulting in competition among homebuyers and driving up the price. However, Toronto Real Estate Board President Richard Silver says in an Oct. 18 news release that the first two weeks of October pointed towards more balanced market conditions, indicating more options for buyers in the months ahead.

When it comes to buying a house for the first time, it is imperative for people to have a set budget, understand needs over wants, find a buyer agent who will be objective, and make the deal conditional on inspection of the home, advises Weisleder.

Researching the location, taking a walk in the neighbourhood, and talking to people in the area will also give buyers a better idea of the suitability of the home and community, and help them in their decision to purchase the right home.

By Julie Valdrez on The Epoch Times

Toronto Housing Market Sizzling Again

2011-11-08T09:22:00.004-05:00

October existing home sales in the greater Toronto area market soared 17.5% from a year ago, the Toronto Real Estate Board says.

The Toronto market numbers have been credited with boosting the national average price at a time when the Vancouver market has slowed.

TREB said the average sale price in GTA reached $478,137 last month, an 8% increase from October 2010.

Jason Mercer, the board’s senior manager of market analysis, says “seller’s conditions” are in place throughout many parts of the GTA.

“Thanks to low interest rates, strong price growth has not substantially changed the positive affordability picture in the city of Toronto and surrounding places,” said Mr. Mercer.

Richard Silver, president of the board, noted the increase in listings has worked to boost sales and provide more product compared to what was available on the market in the spring and the summer.

By Garry Marr found on Financial Post

7 Tips for Successful Real Estate Investing

2011-11-07T10:17:00.003-05:00

Many people think being a landlord and investing in real estate is a way to make easy money. It can be financially rewarding if you do your homework and reduce your risks. But easy, it isn’t and it can lead to financial ruin if not done properly.

The trick is to end up with money in your pocket at the end of the month after paying your bills and collecting the rent as you slowly pay down the mortgage and end up with a nest egg.

Here are some tips:

• Research the area where you’d like to buy. Is it in decline or on the way up? A good indication is if chains like Wal-Mart, Tim Hortons and Home Depot are moving in. These companies do a lot of work on demographics and income before deciding where to locate. You can get a big picture look at vacancy rates at settlement.org, a federally funded site that helps immigrants with information and resources to settle in Canada.

• Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents. Ask for the names of other investors they have helped. Call them. Make sure they have a team of professionals you can use, such as property managers, insurance advisers, mortgage brokers, home inspectors, accountants and lawyers.

• Once you own more than four rental units, find a reliable property manager. You don’t want to take a call in the middle of the night. A rule of thumb is that you should allocate up to 10 per cent of monthly rent to a property manager. They will make sure your building is properly maintained and can help find tenants.

• Do not be in a hurry to rent a vacant unit. Take your time to qualify any potential tenant, since it can take months to evict a problem tenant. Call all tenant references, ask for a current pay stub and speak to at least two prior landlords. Where possible, require the tenant to pay for utilities. The tenant will have to apply to the utility company for an account, which amounts to an extra credit check being done by the utility company.

• Be careful with basement apartments and homes rented to students. Although these units can provide additional income, you must make sure that they are legal, comply with the fire code and have any required licenses to operate.

• Buy and hold your property for the long term. This way, you have an income and slowly start to pay down your mortgage.

• If you are investing with others, have a partnership agreement. Problems may occur later if the friendship breaks down, especially if one partner loses their job and cannot pay their share of expenses, or if one partner wants to sell while the other does not. With a partnership agreement, you can provide what will happen in these situations in advance, without having to pay costly legal fees to figure it out later.

Investing in real estate is not easy. But by taking the proper precautions, it can be very rewarding.

By Mark Weisleder on Moneyville/Toronto Star

$1 Real Estate Listings are Legal, But They Often Don't Work

2011-11-01T09:17:00.000-04:00

One of the most widely read Moneyville stories in the past month is the one about the Oakville home that was listed for $1.

The house was originally listed for more than $1 million. However, when no offers were received, the price was reduced to $1 in the hopes of creating a bidding war. Instead, the ruse generated accusations of false advertising. While a few offers did come in, they were nowhere near what the sellers wanted, so the property was taken off the market.

Readers were angry and confused. Although few really believed the house was for sale for $1, they wondered whether this gimmick was legal and, more importantly, did it actually work? It is legal, but the tactic generally doesn’t work because everyone sees through it.

The $1 listing started appearing about five years ago. In the beginning, it was about getting the property noticed or creating a buzz. In reality, it was more about creating a buzz about the real estate agent, who received lots of media exposure. But it didn’t help sell the house. In fact, many agents have told me they and their buyers have not treated these $1 listings seriously in most cases.

When it comes to the law, real estate deals have to be in writing and signed by the seller and the buyer. Just offering to sell a home on the MLS system does not obligate the seller to accept any offer that is presented.

That is why if a house is listed for $500,000 and you offer $500,000, the seller doesn’t have to accept it. The financial terms may not be acceptable, the seller may have realized later that they had priced the property incorrectly. Or, perhaps the seller suffered a change in circumstances, such as losing their job, and could no longer afford to go through with the deal.

But this does demonstrate the importance of properly pricing your property to attract the largest number of potential buyers. Do not try to “test the market” by advertising a price that is 10 to 20 per cent above fair market value. You will only succeed in helping sellers who are selling in your area for fair market value, as they will be able to compare their home to yours. Later, as you start to reduce your price, people will wonder whether the reduction is because something is wrong with your home that is not being disclosed.

Also do not price your home more than 7 to 10 per cent below fair market value, hoping to trigger a bidding war. Buyers and buyer agents are more sophisticated now about pricing and can recognize this tactic, as well. In a way, it is not much different than the $1 listing strategy.

If you want to price your home to sell, first do the proper home staging to make it appeal to the widest number of potential buyers. Then, after obtaining opinions as to what your home should sell for, price it at a range between fair market value to, at most, 5 per cent below fair market value.

By being more open and honest about the price you will accept, you will attract the most serious buyers who are ready to purchase a home.

By Mark Weisleder posted on Moneyville/Toronto Star

What Happens When a House Deal Doesn't Close?

2011-10-31T10:47:00.001-04:00

When a real estate deal does not close it can set off a horrible chain reaction of events as helpless and frustrated buyers and sellers are left stranded.

It goes something like this: Buyer A is buying a home from seller A, who is using the money from the sale to buy from seller B. Seller B is using this money to buy from seller C and seller C is using the money to buy from seller D.

Now on the closing date, buyer A is unable to close because of a financing problem. This results not only in his own deal not closing but has a domino effect: all the other deals not unable to close as the needed closing funds are no longer available for each subsequent purchase. One buyer not closing causes four deals to fall apart. Hence the train wreck.

The clause in the standard agreement that governs this situation is called the tender clause.

1. If the buyer defaults

If a buyer defaults, the seller must be able to show that he or she was ready and able to close the deal on the closing date. This is important if the seller plans to sue later. This is called ‘tender’ and means the seller’s lawyer must contact the buyer or buyer’s lawyer to show that they had all the paperwork to close the deal.

2. If the seller defaults

If a seller does not close for any reason, the buyer must show he had the money to close the deal. The proof is a copy of the certified cheque or money order.

3. What can a seller do?

Sellers should always make sure that any interested buyer has qualified for a mortgage. When buyers are working with professional salespeople, most of the time the salesperson has already made sure of that. If the seller is selling privately, you may want to consider a credit check before accepting an offer.

After the offer is accepted, make sure your agent is in contact with the buyer’s agent to ensure any appraisal is conducted in a timely manner. If no inspections are scheduled, it is a sign the buyer may be having trouble getting ready for closing.

Sellers should always look into “bridge financing” as a last option if the deal looks like it won’t close. In this situation, if a buyer fails to close at the last minute, the seller is in a position to take out a short-term loan from their bank in order to close their own purchase.

They can then put their existing home on the market again and sell it quickly to try and reduce their damages, and then sue the buyer for all damages suffered.

In this way, they can prevent a lawsuit against themselves by their own seller. Although it will be stressful to have to carry two mortgages for a while, it is still preferable to defaulting on your own purchase and losing the home that you want to move into and opening up yourself to a lawsuit from the seller that you are buying from.

By Mark Weisleder found on Moneyville/Toronto Star

Bank of Canada Maintains Overnight Rate Target at 1%

2011-10-25T11:05:00.001-04:00

OTTAWA, Oct. 25, 2011 /CNW/ - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.

The global economy has slowed markedly as several downside risks to the projection outlined in the Bank's July Monetary Policy Report (MPR) have been realized. Financial market volatility has increased and there has been a generalized retrenchment from risk-taking across global markets. The combination of ongoing deleveraging by banks and households, increased fiscal austerity and declining business and consumer confidence is expected to restrain growth across the advanced economies. The Bank now expects that the euro area—where these dynamics are most acute—will experience a brief recession. The Bank's base-case scenario assumes that the euro-area crisis will be contained, although this assumption is clearly subject to downside risks. In the United States, diminished household confidence, tighter financial conditions and increased fiscal drag are expected to result in weak real GDP growth through the first half of 2012, before growth strengthens gradually thereafter. In Japan, reconstruction activity is projected to boost growth over 2012-13, although Japan's economy will be constrained by reduced global activity and the sharp appreciation of the yen. Growth in China and other emerging-market economies is projected to moderate to a more sustainable pace in response to weaker external demand and the lagged effects of past policy tightening. These developments, combined with recent declines in commodity prices, are expected to dampen global inflationary pressures.

The outlook for the Canadian economy has weakened since July, with the significantly less favourable external environment affecting Canada through financial, confidence and trade channels. Although Canadian growth rebounded in the third quarter with the unwinding of temporary factors, underlying economic momentum has slowed and is expected to remain modest through the middle of next year. Domestic demand is expected to remain the principal driver of growth over the projection horizon, though at a more subdued pace than previously anticipated. Household expenditures are now projected to grow relatively modestly as lower commodity prices and heightened volatility in financial markets weigh on the incomes, wealth and confidence of Canadian households. Business fixed investment is still expected to grow solidly in response to very stimulative financial conditions and heightened competitive pressures, although it will be dampened by the weaker and more uncertain global economic environment. Net exports are expected to remain a source of weakness, owing to sluggish foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.

Overall, the Bank expects that growth in Canada will be slow through mid-2012 before picking up as the global economic environment improves, uncertainty dissipates and confidence increases. The Bank projects that the economy will expand by 2.1 per cent in 2011, 1.9 per cent in 2012, and 2.9 per cent in 2013.

The weaker economic outlook implies greater and more persistent economic slack than previously anticipated, with the Canadian economy now expected to return to full capacity by the end of 2013. As a result, core inflation is expected to be slightly softer than previously expected, declining through 2012 before returning to 2 percent by the end of 2013. The projection for total CPI inflation has also been revised down, reflecting the recent reversal of earlier sharp increases in world energy prices as well as modestly weaker core inflation. Total CPI inflation is expected to trough around 1 per cent by the middle of 2012 before rising with core inflation to the two per cent target by the end of 2013, as excess supply in the economy is slowly absorbed.

Several significant upside and downside risks are present in the inflation outlook for Canada. Overall, the Bank judges that these risks are roughly balanced over the projection horizon.

Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. With the target interest rate near historic lows and the financial system functioning well, there is considerable monetary policy stimulus in Canada. The Bank will continue to monitor carefully economic and financial developments in the Canadian and global economies, together with the evolution of risks, and set monetary policy consistent with achieving the 2 per cent inflation target over the medium term.

Information note:

A full update of the Bank's outlook for the economy and inflation, including risks to the projection, will be published in the MPR on 26 October 2011. The next scheduled date for announcing the overnight rate target is 6 December 2011.

Transmitted by CNW Group on : October 25, 2011 09:46

Housing Market Still Economy’s ‘Bright Spot’

2011-10-24T09:37:00.003-04:00

Existing home prices in Canada continued to increase last month, although the gains recorded were the smallest since January.

The Canadian Real Estate Association said the average price of a home sold in September was $352,581, a 6.5% jump from a year earlier.

The continued strength of the market in the face of a battered world economy was on display last month as sales rebounded from August, increasing by 2.7% on a seasonally adjusted basis. For the first three-quarters of the year, existing home sales are now 1.2% ahead of last year’s pace.

The Ottawa-based group, which represents about 100 boards across the country, said new listings have been flat for two months and markets have tightened but all signs indicate most jurisdictions are still in balanced territory.

The group says nationally the sales-to-new listings ratio was 52.8% in September, up from 51.6% in August. CREA says almost two-thirds of Canadian markets have a sales-to-new listings ratio of 40% to 60%, which is considered balanced.

“The Canadian housing market remains a bright spot against a backdrop of mixed headline news about the global economy,” said Gary Morse, CREA president. “Low mortgage rates continue to draw buyers to the housing market, while recently tightened mortgage regulations are working as intended.”

Adrienne Warren, an economist with Bank of Nova Scotia, noted that even as Canadians spend less on retail purchases, those low interest rates are enticing home buyers.

“Continuing uncertainty over the global economic outlook and highly volatile financial markets have yet to contribute to any notable slowing in Canada’s housing market,” says Ms. Warren.

Last month’s numbers were boosted by a strong contribution from the country’s largest market. Toronto average sales prices rose 8.9% last month from a year ago to $465,369 while sales activity was up 21.3% during the same period.

“It’s pretty clear Toronto is the star of the national real estate scene at least in this act,” said Phil Soper, chief executive of Royal LePage Real Estate Services. “The reality is while the world may be on shaky economic footing and there are scenarios where it would cause hardship to business in Toronto, the current reality is we got jobs back from the recession quickly and there has been some slight upward pressure on income and salaries.”

The market also appears to finally have adjusted to new mortgage rules. The latest round of changes saw amortization periods lowered to 30 years from 35 years, reduced refinancing limits to 85% of a home’s value from 90% and removed government insurance on home-equity lines of credit.

Mr. Soper said those moves, combined with rule changes in 2010 that forced condominium investors to have a minimum 20% down payment, had slowed down the market. “What we didn’t want to see was speculative house flippers and that’s been tightened up,” he said.

Gregory Klump, chief economist for CREA, noted housing has remained stable in face of market volatility which has contributed to Canadian confidence in the economy.

“Interest rates are expected to remain low for longer, and evidence suggests that recent changes to mortgage regulations are preventing the kind of excesses they were designed to avert. Both of these developments are good news for the housing market,” he said.

By Garry Marr posted on National Post on October 17, 2011

Why I Wouldn’t Sell My Home Myself

2011-10-20T10:06:00.001-04:00

Since writing about whether you could create a bidding war without an agent, I have received numerous emails from sellers, real estate agents and companies that provide “for sale by owner” services on the pros and cons of selling by yourself.

Allison Philpot sold her home in Ottawa using a For Sale by Owner marketing service. She listed her home for $419,000, and was able to create a bidding war after her first open house. She received a top bid of $429,000, which she accepted.

The buyers seemed like nice people, as they lived in the community. Unfortunately, they later terminated the deal, relying on a condition in the offer, although Allison suspected that they just found a house that they liked better. The second bidder was no longer interested.

She then dealt with another buyer, who was represented by a buyer agent. Allison later admitted that she was out-matched in the negotiations, and eventually sold her home for $405,000. In addition, she agreed to pay the buyer agent a commission of approximately 2 per cent or $8,000. So her net selling price was $397,000.

After the fact, she reasoned that had she used an agent from the start, she would have probably sold for about $430,000, and that even if she paid $20,000 in commission, she would have netted $410,000, or $13,000 more, without any of the aggravation.

Still, Allison states that had she not gone through the experience herself, she would probably have felt that she had overpaid the agent.

The buyer who walked away from the first deal later told Allison that he would never try and buy a property again without an agent, as he found the process way too stressful himself.

I received many emails from real estate agents talking about their additional network of potential buyers that they bring to every sale, as well as their own experience in qualifying potential buyers in advance and protecting sellers from unusual clauses that are sometimes inserted into agreements. Many agents in Vancouver are now setting up marketing events overseas, as more and more foreigners are looking at Canadian real estate as a safe haven to invest. More buyers mean better prices for sellers.

If you plan on doing this by yourself, at a minimum either have your lawyer look at the contract before you sign it, or make the deal conditional on your lawyer’s review and approval of the agreement. In my opinion, no marketing service can properly prepare buyers or sellers to deal with the stress and emotion that will invariably be involved with any real estate negotiation. It is not easy. Every buyer, seller and property are unique and will require a successful strategy to win.

Whatever method you choose to buy or sell your next home, be prepared and fully informed before you start.

By Mark Weisleder found on Moneyville/Toronto Star

September Strong for Sales in Toronto, with Listings Expected to Pick Up

2011-10-19T11:17:00.001-04:00

Residential sales activity and home prices in Toronto continued to rise in September, keeping on pace for the second-best sales year, according to the Toronto Real Estate Board.

There were 25% more sales last month compared to a year earlier, reaching 7,658 transactions this September. The average price for all residential properties was $465,369, up 9.3%. But the board’s senior manager or market analysis, Jason Mercer, said Toronto’s market remains relatively affordable, despite the price gains this year.

“Strong price growth through the first nine months of the year was mitigated to a great degree by low interest rates and rising incomes,” he said. “As buyers continue to take advantage of the affordable home ownership options in the GTA, we remain on pace for the second best year for sales under the current TREB market area.”

TREB’s press release pointed out a five-year chartered bank fixed rate for August was 5.19%, a three-year rate was 4.35% and a one-year rate was 3.5%, according to the Bank of Canada. Toronto employment growth was also up 0.8% in August, and the unemployment rate dropped to 8.1% from 8.3% in July.

But as the buying activity continues and prices continue rising, there has been a shortage of property listings in the Toronto area over the summer. That’s resulted in greater competition between homebuyers, said TREB President Richard Silver.

“Over the past few months, the listing situation has started to improve, so we expect home buyers will have more homes to choose from in the months ahead,” he said.

September also ended a three-month skid in the average Toronto home price, but still not back to this year’s peak of $485,436 from May. The year-to-date average home price in Toronto is $464,024, which nearly double the average price of 10 year ago, when it was $251,508 in 2001.

Written by Editorial Team (Canadian Real Estate) on October 7, 2011

Your Homes Sale Price is Private Information

2011-10-15T09:02:00.000-04:00

Your home’s sale price is private information

A few years ago, the federal Privacy Commissioner ruled a home’s sale price is personal information and cannot be advertised or disclosed without the permission of the buyer and the seller.

This is what privacy legislation is all about — protecting your personal information. The lesson is that if you do not want to see your home’s sale price advertised after closing, then don’t agree to it.

In another case decided in 2006, an insurance company arranged for photographs to be taken of an apartment unit, without the tenant’s permission. The purpose was to get examples of the state of repairs of the interior of the apartments to assist in figuring out the building’s value. However, the pictures included some of the apartment’s contents.

The Privacy Commissioner’s office found that while the purpose might have been to show the condition of the unit, it also revealed information about the tenant, including their standard of living, whether they could afford expensive media equipment, whether they loved music or art or cooking. This was found to be personal information and thus permission should have been requested.

What this means is that before a buyer or agent takes photographs of anything inside a seller’s home, even during an open house or home inspection, they should ask for permission.

In another case decided in 2008, a consumer asked their bank for a copy of the appraisal report the bank had done on their home. An appraisal contains information about other comparable property sales in your area that help the appraiser calculate the value of your property. The bank refused, claiming this was confidential commercial information and not personal information.

The Privacy Commissioner’s office decided that, while the consumer was entitled to the appraisal value of their own home, they were not entitled to the name or contact information of the appraiser, or anything related to comparable property sales, as this was the personal information of third parties.

The issue of privacy arises in the ongoing lawsuit between the Competition Bureau and the Toronto Real Estate Board, something I’ve written about in the past few months.

The Competition Commissioner wants Canadians to be able to go online and access the selling price of any home in Canada. The potential abuses are huge, starting with thieves who want to learn about potential victims and their lifestyle.

Since buyers and sellers didn’t provide this permission, in my opinion, it violates privacy legislation.

It seems to me the Privacy Commissioner should be involved in these proceedings and I encourage all Canadians to complain to the Privacy Commissioner’s office in Ottawa and to federal Industry Minister Christian Paradis.

To register a complaint to the Privacy Commissioner’s office, you can download a form from their website, www.priv.gc.ca, sign it and then send it in.

You can email Paradis’ office at minister.industry@icigc.ca.

From Toronto Star/Moneyville on October 14, 2011 by Mark Weisleder

Selling a Home: 10 Things You Need to Know

2011-10-13T09:24:00.000-04:00

People sell their homes for a variety of reasons, whether it’s because they need more space, they’re downsizing, moving up, leaving the country, or getting a divorce. They all have one thing in common: They want to get the most they can.

Here are 10 things you need to know about selling your house.

1. What’s my house worth?

It doesn’t hurt to get a second opinion at the doctor’s office. Real estate is no different. If you’re interviewing realtors, ask what they think your home will fetch. Agents will look at what else has sold in the neighborhood and make a comparison. But trying to figure out value in a fast moving market can be like pinning a tail on a galloping donkey. What sold last might not be where the market is today. But at least it will give you some baseline numbers.

That ballpark figure is essential to helping you to figure out how much equity you have in the home. That’s the amount of money left after you sell, minus your mortgage and other expenses such as moving and commissions. It gives you an idea of what you can afford for your next property and whether it’s worthwhile selling in the first place.

2. Declutter

I know you’ve seen those reality shows where the hoarders have junk packed to the ceilings. I know this isn’t you. But I also know that you don’t always vacuum every day and the house isn’t necessarily as pristine as it could be. Decluttering is the cheapest way to make your house shine to a prospective buyer. You may even find that box of chocolates that your aunt gave you for Christmas.

3. Curb appeal

First impressions count. The front of your home is the first thing buyers see. Some buyers have been known to stop at the front door and walk back to the car if they are turned off. That means making sure your lawn is freshly mowed. A coat of paint outside can’t hurt either. And bury the garden gnomes.

4. You can do it yourself

There are plenty of do-it-your self companies to help you sell. Some will list your home on the Multiple Listing Service for a few hundred dollars. Others will provide services a la carte, depending on what you need.

Or you can do most of the work yourself. That includes your own showings and flyers. But you get to keep most of the savings. An agent will charge a seller roughly 2.5 per cent of the selling price. On a $400,000 home, that works $10,000. With a little sweat equity you could save significantly.

5. If you want an agent…

If you feel more comfortable using an agent, shop around. Just because your cousin just got his license, it doesn’t make him the best choice. Your aunt might be miffed, but this is your money. Ask friends. Get referrals. There are even internet “dating” services out there that have realtors bid on your business. Pick from realtors that offer you the best range of commission and service and most of all knowledge about your neighborhood.

The realtor that suggests the highest price is not necessarily the best for you. Is he just trying to get your business? Find out how he calculated the price and assessed the value. Then compare with your other choices.

And don’t be afraid to negotiate. Realtors work hard for their money. But that doesn’t mean you can’t get a discount. If your agent shaves off just half a percentage point on his or her commission, that would leave $2,000 in your bank account on a $400,000 home. That’s enough for a nice little vacation somewhere.

6. Depersonalize your home

Pictures of your kids and grandkids are cute, but not to all buyers. Buyers want to be able to imagine living in your house. That means visualizing sitting on your comfy couch watching your big screen TV with a huge tub of popcorn. Just like you. So take away anything that will remind them that they’re just visiting. You want them to linger awhile. Don’t spoil the illusion.

7. Maybe hire a fluffer

Home stagers help you rearrange things in the house to make its appearance more attractive It could be worth it, but can also be expensive. But if it’s a slow market, your home has an odd layout, or your furniture is from a tattoo parlour (not that there’s anything wrong with that) a home stager may be the answer.

8. Marketing your home

Posting your home on the Multiple Listing Service, newspaper advertising and flyers are some of the traditional means that many people use. There are also internet sites where you can post your home for sale, depending on whether you are selling it yourself or using an agent.

The easiest and cheapest way starts with a sign on your lawn. Some people don’t like the For Sale sign because of privacy issues, but it’s round the clock billboard advertising.

You can also consider an open house for agents. Many realtors prefer to pre-screen a home before recommending it to their buyers. You can also have a general open house where anyone can drop by. Yes, so will all your nosy neighbors, but they may have friends or relatives who might want to live in the neighborhood.

9. When to sell?

Spring is traditionally the strongest market and prices are typically higher. As summer approaches, families have more time to look around, but most parents want to get settled before school starts.

Come winter, inclement weather keeps people indoors and buyers are thinking about the holidays. Not surprisingly, Christmas tends to be the slowest. But that doesn’t mean you have to shy away from listing. Sometimes less competition can mean good results. And your home is already decorated. Take advantage of the fact that the place already looks great for the holiday season. The tree is up, the fireplace is blazing. Let it snow!

10. Do you really need to sell?

If you need a bigger home, you could explore putting on an addition. If your home is dated, you can think about renovating. If you’ve lost a job and are having trouble making ends meet, think about taking in a tenant. There are options to selling that you can consider. There are also costs to take into account, from moving and storage to commissions that you pay each time you move. Selling isn’t always the best way to go. Your dream home might already be the one you’re in right now.

By Tony Wong, Moneyville

Six Ways to Make Sure You Buy the Right House

2011-10-12T15:27:00.000-04:00

The most common mistake home buyers make is buying with their heart instead of their head — usually because they panic while involved in a stressful negotiation for which they are unprepared.

The result is that buyers pay more than they should, or are disappointed later when they find defects in the home or discover the neighbourhood isn’t quite what they thought.

So, here’s an updated list of six ways to prepare yourself:

1. Sell or buy first?

We are still in a seller’s market in the GTA, with the number of buyers exceeding the number of available homes. In this type of market, you should buy your new home first and then sell your existing home. If you sell first, you may find yourself running out of time, with no home to move into, as the closing date nears. This leads to panic buying.

In a buyer’s market, sell your home first as you won’t have as much trouble finding a new one.

2. Research, research, research

Check police websites for neighbourhood crime statistics. Ask at City Hall if new developments are planned or whether a new large employer is relocating to the area. Jobs mean demand.

Walk any neighbourhood you are interested in and talk to people. You will learn the demographics of the area and its facilities. What schools are in the area and is there a waiting list to get in? Are there activities nearby for children, including parks, libraries and community centres? You also get a sense of the friendliness of the community and whether there are surprises that no one is going to advertise — vandalism, former grow houses, or the neighbour from hell.

3. Find the right agent

Do not go into an open house alone, thinking you can save commission. The agent is working for the seller and their job is to get the seller the most money possible. While focusing on saving a few dollars negotiating commission, you will invariably give away important information about yourself, which will hurt you later.

Start by asking family and friends for a buyer agent referral. Then study the agent’s own website. Do they offer information that will assist you with your search? Do they have a team of professionals they can share with you? When you interview them, ask them about their knowledge of the area; in particular, is it known for sewage backups, termites, flooding or mould. Ask for their own success rate when working with buyers, especially in bidding wars, and then call those buyers yourself.

4. How much can you afford?

You should never live just to pay your mortgage, or else the rest of your life will suffer. Meet with a mortgage broker in advance to determine how much you can safely borrow, based on your income and family needs. Buyers should also realize the lender will do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan you expect. So, be very careful about stretching yourself to the limit when you make an offer.

5. Choose a home inspector carefully

The home inspection is becoming even more important, as it is one of the only ways for a buyer to check against unwanted surprises after closing.

Ask for references and call these references yourself, especially the ones who bought older homes, where problems are more likely to occur later. There are now additional inspections that test specifically for mould or termites. There are video cameras that can tell you the condition of your sewage system and scanners that can look behind walls. If it is an older home, it is worth this extra investment.

Remember, most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. Ask the company if they have ever been sued by a buyer.

6. Title insurance is a must

Title insurance can be arranged through your lawyer. You will be protected against unpaid taxes or water bills by the seller, as well as problems that are not known at closing. This includes problems where part of the home or swimming pool is in fact on your neighbour’s property.

However, it is a mistake to believe title insurance will protect you against everything. For example, it won’t compensate you if you thought your lot was 50 feet and a later survey showed it was only 48 feet. That is why you should always ask for an up-to-date survey on the property.

By Mark Weisleder, Moneyville, On September 30, 2011

Eager buyers keep Canada’s housing market hot

2011-08-17T07:49:00.000-04:00

August 16, 2011

The Toronto Star, Susan Pigg

Jose Jimenez and his wife, Sydney Richardson, are searching for a home in Toronto's Beach area in which they plan to raise their 2-year-old daughter, Sadie, and another child who is on the way. (Aug. 16, 2011)

LUCAS OLENIUK/TORONTO STAR Financial consultant Jose Jimenez has been on his own gut-wrenching roller coaster ride the last few weeks — and not because of the stock market fluctuations he monitors daily.

Jimenez, 35, has been trying to buy his first home. “In a way, I’ve been rooting for the markets to tank a bit and hoping that might encourage other people not to buy right now, but that doesn’t seem to be the case,” says Jimenez, whose wife is expecting their second child.

In fact, whipsawing markets, fears of a double-dip recession and global economic uncertainty seem to have made housing look as good as gold.

Canadian home sales were up 12.3 per cent last month from July, 2010 and are expected to grow slightly the rest of this year because of low interest rates, the Canadian Real Estate Association said Tuesday.

“We anticipate that, going forward, the housing market in Canada is going to be an oasis of stability compared to what is expected to be further volatility in financial markets,” Gregory Klump, CREA’s chief economist, said in a telephone interview.

Almost 285,000 housing units have sold across Canada so far this year, just 1.6 per cent below sales for the same period last year, and that’s expected to hit 450,800 by the end of 2011, according to CREA forecasts.

That’s despite dire predictions earlier this year from some housing analysts that the real estate bubble is overdue to burst and send Toronto prices toppling by as much as 25 per cent.

Jimenez is keenly aware of all those numbers but has a few more pressing ones on his mind: His second child is due in September, his 2-year-old daughter Sadie will start school in a couple of years and Jimenez and his wife, Sydney Richardson, just want a house they can make a home.

Richardson is now worried the couple are “doomed” to have to raise their children in their two-bedroom Beach apartment after losing out Monday in a six-person bidding war — their second in just a few weeks — on a renovated three-bedroom Beach semi that was listed for $699,000.

The couple offered $703,000, only to be outdone by a so-called “bully bid” — a down-to-the-wire offer almost $100,000 over asking price.

Last month they were braced to offer $70,000 over the $550,000 asking price for a Rhyl Ave. house but found themselves up against 13 other potential buyers. The house sold for $120,000 over asking.

The couple has talked about putting things on hold until the real estate market calms down, but their biggest fear is that day will never come.

While Sonya Gulati, an economist at TD Economics, anticipates sales will be a little more subdued in the fall, she said first-time buyers and immigrants are still being drawn into the market by interest rates that are expected to remain low until 2013.

“On the one hand, they are incredibly brave given all the economic uncertainty out there,” says Gulati, “but you need a place to live and a house is a long-term purchase so people seem to think it makes sense despite the market gyrations.”

Real estate agent Dave Tsaparis says he’s seeing more and more home buyers, banking on low interest rates, taking on mortgages of $300,000 to $500,000.

Veteran Beach real estate agent Dianne Chaput blames lack of supply for many of the bidding wars, but expects that could ease in the fall as more baby boomers look to cash out on their biggest asset at peak market.

Domenic Polsoni is so confident real estate is a sure bet, he recently traded in his Milton home, and gave up one car to help finance the move to a more expensive house in the Dufferin St. and Sheppard Ave. area.

“People have been saying for years that the real estate bubble is going to burst, but I can’t imagine that will happen. We survived a major hit in 2008, people held their breath and then everything just seemed to march along.”

Jimenez fears getting caught up in the current real estate “panic.”

“But this is the neighbourhood where we want to raise our kids. Even if we were to take a short-term loss, I wouldn’t be too worried about it in the long run.

“I think we’d definitely get the value back from it, not just in the sale price, but in the life we will have had bringing up our family in that neighbourhood.”

Are Interest Rates Going Down?

2011-08-10T15:34:00.000-04:00

Yes, according to the experts. Rates for everything from lines of credit to mortgage could follow. Go to http://www.lancasterteamsellshomes.com/ to read the article - under the "Information Tab".

Beware the Pitfals of Collateral Mortgages

2011-08-03T07:34:00.000-04:00

FINDING THE RIGHT MORTGAGE FOR YOU!

When working in the best interests of my clients, I always recommend to them to speak with at least 2 Mortgage Professionals.

If they are meeting with their bank I suggest it would be worth their time to also speak with an independant Mortgage Broker as the financing of your home is a very important element of Home Ownership and has a number of components that are different with each Lender.

It is critical to find the right Mortgage "ingredients or components" for each Buyer.

Please let me know if you found this article helpful. Also never hesitate to go to our website for further information - http://www.lancasterteamsellshomes.com/.

Thanks, Susan.

Great article written by lawyer Mark Weisleder for the Toronto Star ... just goes to show we must read what we are going to sign and never be afraid to ask questions.

When you apply for a mortgage, you usually just ask about the term, amount, interest rate and monthly payment. Not many people understand the difference between a conventional mortgage and a collateral mortgage. Yet many banks are now asking borrowers to sign collateral mortgages — and it could result in them being tied to this bank, for life.

With a normal conventional mortgage you bargain for a set amount, rate and amortization. Say the property is worth $250,000 — you bargain for a $200,000 loan, at 3.5 per cent, a five-year term/25-year amortization, payments of $998.54 per month.

A conventional mortgage is registered against the property for $200,000. If all the payments are made on time, the mortgage is renewed on the same terms every five years and no prepayments are made, the balance is zero after 25 years.

Should another lender decide to lend you money as a second mortgage, there is nothing stopping them from doing so, subject to their own guidelines. Under normal circumstances the principal balance on a conventional mortgage goes only one way, down. In addition, banks will accept “transfers” of conventional mortgages from other banks, at little or no cost to the consumer.

A collateral mortgage has as its primary security a promissory note or loan agreement and as “backup,” a collateral security, being a mortgage against your property. The difference is that, in most cases, the mortgage will be for 125 per cent of the value of the property. In our example, the mortgage registered will be for $312,500. But you will only receive $200,000. The loan agreement will indicate the actual amount of the loan, interest rate and monthly payments.

The collateral mortgage may indicate an interest rate of prime plus 5-10 per cent. This will permit you to go back to this same bank and borrow more money from time to time, without having to register new security. The lender will offer you a closing service, to register the mortgage against your property, at fees that will be cheaper than what a lawyer would charge you. Sounds good so far, doesn’t it?

However, this collateral loan agreement has different consequences, which are usually not explained to the borrower.

• Most banks will not accept “transfers” of collateral mortgages from other banks, so the consumer is forced
to pay discharge fees to get out of one mortgage and additional fees to register a new mortgage if they move
to a new lender. Thus the bank is able to tie you to them for all your lending needs indefinitely because it will
cost you too much to move.

• Lenders may be able to use the collateral mortgage to offset any other unpaid debts you have. Offset is a
right under Canadian law that says a lender may be able to seize equity you have in your home, over and
above the mortgage balance, to pay, for example, a credit-card balance, a car loan, or any loan you may
have co-signed that is in default with the same lender. In essence any loans you may have with that lender
may be secured by the collateral mortgage. Nobody goes into a mortgage thinking about default, but “stuff”
happens in people’s lives and 25 years is a long time.

• Let’s say your house value is $200,000. A collateral first mortgage registered on the property is $250,000.
The amount owing on the mortgage is $150,000. If you were to need an additional $20,000, but the lender
declines to lend it for any reason, then practically speaking you won’t be able to approach any other lender.
They will not go behind a $250,000 mortgage. Your only way out would be to pay any prepayment penalty
to get out of the first mortgage and pay any additional costs to get a new mortgage.

• Let’s say your mortgage is in good standing but you default under a credit line with the same bank. The
bank could in most cases still start default proceedings under your mortgage, meaning you could lose the
house.

• Some lenders are offering collateral mortgages in a “negative option billing” manner. Unless you are
informed enough to say you want a conventional mortgage, you will be asked to sign documents for a
collateral mortgage.

One bank is only offering collateral mortgages.

I spoke with David O’Gorman, the president and principal mortgage broker with MortgageLand Inc. He tells me it is his duty under the law to ensure the “suitability” of any mortgage he arranges for a consumer.

He would be hard pressed to justify the recommendation of this type of collateral first mortgage to any consumer, without disclosing both verbally and in writing the points listed above, and he believes the consumer should have their own lawyer review everything before they sign.

Lending money to people without proper explanation of the consequences is wrong. The banking regulators need to look into this practice and stop it. In the meantime, do not sign any mortgage document without discussing it first with your own lawyer.

Mark Weisleder is a lawyer, author and speaker to the real estate industry. Published in the Toronto Star Saturday July 30, 2011.

Where there's a Will, there's now Insurance

2011-07-28T14:43:00.000-04:00

It seems we now live in a society of high risk of legal disputes over an inheritance when there are:

1. Estranged former spouses and stepchildren,
2. The will is vague, s
3. Some heirs are treated differently or are in more need of money,
4. When the heirs are not getting along or are left to agree on the division of possessions amongst themselves.

More is at stake with the rise in value of Real Estate and Retirement Portfolios relative to incomes. Familieis divided by second and third marriages may be less tolerant, and more comfortable with suing in court.

There is a new insurance policy available to protect you if you become an executor or trustee and you fear being sued by dissatisfied heirs.

The above was taken from an article written for the Toronto Star, June 2011

Contact me if you would like more information at Susan@LancasterLuxuryHomes.com

Love Your Neighbourhood Contest with Royal LePage

2011-07-28T14:35:00.000-04:00

Love where you Live? Go to http://www.lancasterteamsellshomes.com/ and on the left side see Erin Mills South Tab, then "My Great Neighbourhood" for chance to win $20K - tell RLP why You Love where You Live. Good Luck

2011-04-29T11:49:00.001-04:00

Lots to celebrate ... Royal Wedding, House Prices increasing, and good weather forcast for the weekend. Cheers everyone!

2011-04-28T13:59:00.001-04:00

Toronto Star wrote when you Sell by yourself you may in fact save money on commission, yet if your net price is less than what you could've received if the property was properly marketed, then is this really a good deal for you?

2011-04-15T11:38:00.001-04:00

Brand New Listing - Large 4+1 Bedroom Home in Erin Mills South - Please visit Dedicated Website: http://ping.fm/AZwN2

2011-02-16T13:33:00.001-05:00

Feel free to use our amenity map to learn more about the neighbourhood of interest to you! http://ping.fm/uyYzN

2010-12-08T12:19:00.000-05:00

Gorgeous Large 4 Bedroom Home, One Of Few On Street.

$$$ Recently Renovated. Move-In Condition.

Double Door Entry With Covered Porch.

Access To Garage. Main Floor Laundry.

Water Filtration System, Mid Eff Furnace(09), 2nd Fl Laminated Floor(09), Newer Wood Deck(08).

Walking Distance To Walmart, Fortinos, Etc. Close To Public Transit.

Don't Miss This Gem. Incl All Elf, Window Coverings, & Blinds. Frigidaire Fridge And Stove In As Is Conidition.

Buyer To Assume Alarm System $19+ Tax Monthly.

Open Concept Kitchen Great Room With Access To Private Back Yard.

For more information, please visit the Dedicated Website: http://www.277pressedbrick.com/

2010-06-30T13:38:00.001-04:00

Click the following link to join our Mailing List: http://conta.cc/azL2ji

Make this your new home before the end of June - Beat the HST - Luxury Now!

2010-06-23T18:14:00.000-04:00

Custom Built 2 Storey home in Prestigious Lorne Park within a short walk to Lorne Park High School, quaint stores and restaurants.

This over 4000 square feet of pure luxury could be yours ... never lived in and built with attention to detail by IVA Homes Ltd. The Stone, Board and Batten Exterior is only the start of the "WOW" factor, once you walk in you will quickly appreciate the Hardwood floors that have been stained and finished on site.

Exquisite Finishings include Custom Gourmet Kitchen with Centre Island, Caesar Stone Counters, walk in Pantry, High-end built in Appliances and a Butler's Pantry with Wine Fridge.

Enjoy the magnificent 11-18 foot Vaulted Ceiling, Comfortable Window Seat and Open Concept of the Great Room.

IVA Homes believes in delivering quality and value ... every square inch of your new home is finished with great attention to "Customer Delight". The approximately 2,000 square feet, with 9' ceilings, features a separate Nanny Quarter (with Washroom, Bedroom, Living Room and r/i Kitchen), large Recreation Room with Gas Fireplace, Washroom with Steam Shower and Bedroom/Excercise/Media Room.

Close before the end of June to beat the HST ... you still have time.

Your new home is finished from the outside, in with Landscaping and more ... Call Susan at 416 410 5477 to arrange a viewing.

2010-06-22T15:02:00.000-04:00

Luxury Home Sales Soar

Upward momentum throughout real estate sector

Luxury homes in Canada sold briskly during the first three months of this year, shattering records for first-quarter activity in nine of 13 Canadian markets, a recent report states. The report called Upper End 2010 cites improved economic performance, increased personal wealth, immigration and foreign investment as catalysts in the sales surge. The recovery in luxury home sales is "nothing short of remarkable," said a Real Estate Expert. "This segment of the market was hardest hit when the recession took hold, yet its comeback has been fast and furious." Sales rates over the same period last year increased 263 per cent in the Greater Toronto Area. The entry point for high-end homes in Vancouver hit $2 million, with Toronto and Montreal posting entry-level luxury home prices of $1.5 million. Ash, a Real Estate Expert, told CBC News he believes higher prices and renewed activity are here for the long term. He pointed to the slow but steady recovery of economies in the United States and United Kingdom. "As those much larger economies continue to improve slowly and cautiously, that will help us," Polzler said.